CONSENSUS & EVALUATION
Giuliano Resce, Università di Roma 3
AREA OF RESEARCH
• Public Sector’s Performances
• Measures of Well-Being
STEP 1
Adapt the method to the peculiarities of the
Public Sector and Measures of Well-Being:
• Multidimensional nature
• Opinions
16 Novembre 2015,
Dipartimento di Economia,
Università di Roma 3
2
PRESENTATION
•
•
•
•
Introduction to Data Envelopment Analysis
Restricting weights in DEA
Tools from MultiCriteria Decision Analysis
Case studies
16 Novembre 2015,
Dipartimento di Economia,
Università di Roma 3
3
PRODUCTIVITY BENCHMARKING
16 Novembre 2015,
Dipartimento di Economia,
Università di Roma 3
Charnes, Cooper and Rhodes (Management Science, 1981)
4
THE CCR MODEL
Eff
j
 Max
u1 y1 j  u2 y2 j  ...  u R y Rj
v1 x1 j  v2 x2 j  ...  vI xIj
subject to
Outputs:
y1, y2 ,..., yR
Inputs:
x1 , x2 ,..., xI
Firms:
j , k ,..., N
u1 y11  u2 y21  ...  u R y R1
1
v1 x11  v2 x21  ...  vI xI 1
Weights: u 1 , u 2 ,..., u R , v1 , v 2 ,..., v I
u1 y12  u2 y22  ...  u R y R 2
1
v1 x12  v2 x22  ...  vI xI 2
...
u1 y1N  u2 y2 N  ...  u R y RN
1
v1 x1N  v2 x2 N  ...  vI xIN
u 1 , u 2 ,..., u R , v1 , v 2 ,..., v I  0
16 Novembre 2015,
Dipartimento di Economia,
Università di Roma 3
Charnes, Cooper, and Rhodes (European Journal of Operational Research,1978)
5
PUBLIC SECTOR COST EFFICIENCY
Eff
j
 Max
u1 y1 j  u2 y2 j  ...  u R y Rj
vc j
subject to
u1 y1k  u2 y2 k  ...  u R y Rk
1
vck
k  1....N
u 1 , u 2 ,..., u R , v  0
16 Novembre 2015,
Dipartimento di Economia,
Università di Roma 3
Fare et al. (Journal of Public Economics, 1988)
6
ASSURANCE REGION METHOD
Eff
j
 Max
u1 y1 j  u2 y2 j  ...  u R y Rj
v1 x1 j  v2 x2 j  ...  vI xIj
subject to
u1 y1k  u2 y2 k  ...  u R y Rk
1
v1 x1k  v2 x2 k  ...  vI xIk
k  1....N
u 1 , u 2 ,..., u R , v1 , v 2 ,..., v I  0
u1
L1, 2 
 U 1, 2
u2
16 Novembre 2015,
Dipartimento di Economia,
Università di Roma 3
Thompson et al. (Interface, 1986)
7
VALUE JUDGMENTS IN DEA
Scores of sites
Criterion Site
C1
C2
C3
Sum
16 Novembre 2015,
Dipartimento di Economia,
Università di Roma 3
S1
5
10
3
18
S2
7
10
3
20
S3
8
7
5
20
S4
4
8
3
15
S5
9
4
4
17
S6
10
2
10
22
Y. Takamura, K. Tone (Socio-Economic Planning Sciences , 2003)
S7
4
7
7
18
8
VALUE JUDGMENTS IN DEA
Weights on criteria of five evaluators
Evaluators
Criterion
C1
Evaluator 1
2
Evaluator 2
4
Evaluator 3
5
Evaluator 4
3
Evaluator 5
5
Average
3,8
16 Novembre 2015,
Dipartimento di Economia,
Università di Roma 3
C2
3
4
3
4
4
3,6
C3
5
2
2
3
1
2,6
Y. Takamura, K. Tone (Socio-Economic Planning Sciences , 2003)
Sum
10
10
10
10
10
9
VALUE JUDGMENTS IN DEA
Weights ratios of five evaluators
u1/u2
u2/u3
u1/u3
Evaluator 1
0,667
0,6
0,4
Evaluator 2
1
2
2
Evaluator 3
1,667
1,5
2,5
Evaluator 4
0,75
1,3337
1
Evaluator 5
1,25
4
5
16 Novembre 2015,
Dipartimento di Economia,
Università di Roma 3
Y. Takamura, K. Tone (Socio-Economic Planning Sciences , 2003)
10
VALUE JUDGMENTS IN DEA
Max u1S1 j  u2 S2 j  u3S3 j
subject to
u1S1k  u2 S2 k  u3 S3k  1
u ,u ,u  0
1 2 3
k  1....N
0,6667 
u1
 1,6667
u2
u1
0,4   5
u3
0,6 
16 Novembre 2015,
Dipartimento di Economia,
Università di Roma 3
u2
4
u3
Y. Takamura, K. Tone (Socio-Economic Planning Sciences , 2003)
11
MODIFICATIONS
• Different bounds for different DMU
• Voting sistems
16 Novembre 2015,
Dipartimento di Economia,
Università di Roma 3
12
CASE STUDY 1
European Health for All database (HFA-DB)
HFA-DB provides a
selection of core health
statistics covering basic
demographics, health
status, health
determinants and risk
factors, and health-care
resources, utilization and
expenditure in the 53
countries in the WHO
European Region.
16 Novembre 2015,
Dipartimento di Economia,
Università di Roma 3
World Health Organization, 2015
13
CASE STUDY 2
16 Novembre 2015,
Dipartimento di Economia,
Università di Roma 3
OECD, 2015
14
WHAT MATTERS MOST TO
PEOPLE AROUND THE WORLD?
More than 80 000 users of the Better Life Index
around the world have shared their views on
what makes for a better life. Explore the
interactive map and find out what well‐being
topics are rated highest and where. Of course
this is a small share of the world’s population –
so why not share your vision of a better life and
helpus reach 100 000 (or even more) by the end
of 2015.
16 Novembre 2015,
Dipartimento di Economia,
Università di Roma 3
OECD, 2015
15
REFERENCES
Charnes A, Cooper WW, Rhodes E. (1978) Measuring the efficiency of
decision making units, European Journal of Operational
Research;2:429–44.
Fare R, Grosskopf S. and Lovell C.A.K. (1988) An indirect approach to
the evaluation of producer performance Journal of Public
Economics 37, 71-89.
OECD (2015) How’s life?, Paris.
Thompson RG, Singleton Jr. FD, Thrall RM, Smith BA. (1986)
Comparative site evaluations for locating a high-energy physics lab
in Texas, Interface;16:35–49.
Takamura Y, and Tone K. (2003) A comparative site evaluation study
for relocating Japanese government agencies out of Tokyo, SocioEconomic Planning Sciences, Vol. 37, pp. 85–102
World Health Organization (2015) European Health for All database
16 Novembre 2015,
Dipartimento di Economia,
Università di Roma 3
16