Dea Method as a Tool of Rating Efficiency – Case of the Lubelskie Voivodeship Communities

Karolina Leonarcik
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Karolina Leonarcik: Maria Curie-Sklodowska University in Lublin, Poland

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Abstract: The efficiency of functioning is a crucial issue not only in relation to private companies but in the local government units as well, which put more and more emphasis on efficiency nowadays. The local government unit, that is the community (NUTS5 in Nomenclature of Territorial Units for Statistics), is intended to efficiently and effectively meet the needs of its residents. The increase of community expectancy and limited resources it has, makes them to efficiently and reasonably manage their resources. There is a specific method of measuring the efficiency of the public sector unit is Data Envelopment Analysis (DEA). It is a nonparametric method, which uses linear programming to define the relative efficiency of analysed units. The purpose of the article is to analyse the communities’ efficiency using the DEA method. The communities of the Lubelskie province were researched. The main efficiency measurement of the local government unit is the utility of performed actions influencing local society. Efficiency of individual communities and their change over the years were also researched and compared. The article is summarised with the conclusions from the research and possible solutions for the communities to improve their efficiency.

Keywords: Data Envelopment Analysis; efficiency; public sector; NUTS5; nonparametric methods of efficiency measurement (search for similar items in EconPapers)
Date: 2016
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