A model of evaluation of the efficiency of the public sector through the method data envelopment analysis (DEA)

Carlos Rosano Peña

RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), 2008, vol. 12, issue 1, 83-106

Abstract: The objective of this work was to present a powerful tool, still little used in Brazil, called Data Envelopment Analysis (DEA). This Method can be used to evaluate the technical efficiency of productive units that use multiple inputs to produce multiple goods and services measured in different units. It is recommended in the study of the efficiency of the public administration, of institutions without lucrative purposes and organizations that accomplish your activities through units as hotel nets, franchises, school units, agencies of mail and banks. The Method compares the inputs and outputs of each unit and determines the index of relative efficiency of each analyzed unit. These indexes allow to determine the best practices, the inefficient units and the necessary changes in the levels of inputs and outputs, so that the last units become efficient. It can be used in the identification of idle resources or disabled and in the formulation of politics of reduction of costs associated to an expansion that optimizes the potential of growth and the ideal load of the enterprise. Therefore, it is a valuable tool for the benchmarking research that allows the continued improvement process.

Date: 2008
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