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 U1, 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