Coordination Efficiency in Multi-Output Settings: A DEA Approach

KU Leuven Discussion Paper Series DPS14.24

34 Pages Posted: 14 Oct 2014

See all articles by L. Cherchye

L. Cherchye

KU Leuven; Erasmus Research Institute of Management (ERIM)

Bram de Rock

Katholieke Universiteit Leuven - Campus Kortrijk (KULAK) - Subfaculty of Economics and Applied Economics

Veerle Hennebel

KU Leuven - Center for Economic Studies

Date Written: August 19, 2014

Abstract

We extend a recently developed methodology for measuring the efficiency of Decision Making Units (DMUs) in the case of multiple inputs and outputs. The methodology accounts for economies of scope through the use of joint inputs, and explicitly includes information about the allocation of inputs to particular outputs. We focus on possible efficiency gains by reallocating inputs across outputs. We introduce a measure of coordination efficiency, which captures these efficiency gains. We demonstrate the practical usefulness of our methodology through an efficiency analysis of education and research conducted at US universities.

Keywords: DEA, input allocation, decentralized efficiency, centralized efficiency, coordination efficiency, university education and research

Suggested Citation

Cherchye, Laurens and de Rock, Bram and Hennebel, Veerle, Coordination Efficiency in Multi-Output Settings: A DEA Approach (August 19, 2014). KU Leuven Discussion Paper Series DPS14.24, Available at SSRN: https://ssrn.com/abstract=2509278 or http://dx.doi.org/10.2139/ssrn.2509278

Laurens Cherchye (Contact Author)

KU Leuven ( email )

Oude Markt 13
Leuven, Vlaams-Brabant
Belgium

Erasmus Research Institute of Management (ERIM)

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Bram De Rock

Katholieke Universiteit Leuven - Campus Kortrijk (KULAK) - Subfaculty of Economics and Applied Economics ( email )

Etienne Sabbelaan 53
Kortrijk, B-8500
Belgium

Veerle Hennebel

KU Leuven - Center for Economic Studies ( email )

Naamsestraat 69
Leuven, B-3000
Belgium

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