Pluralistic Efficiency-Equity Tradeoffs in Locating Public Services

Fang Lei () and Li Hecheng
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Fang Lei: Business School, Nankai University, Tianjin300071, China
Li Hecheng: Department of Mathematics, Qinghai Normal University, Xining810008, China

Journal of Systems Science and Information, 2014, vol. 2, issue 2, 130-143

Abstract: Aside from efficiency, equity is a particularly salient objective in siting public facilities. In this paper, we develop and test a bicriteria mixed integer program that trades off the efficiency and equity measures between an individual and the group. Individual efficiency is measured by data envelopment analysis (DEA) while individual equity is modeled by a center location model. On the other hand, group efficiency is measured by the median location model, while group equity is measured by the Gini coefficient. Available computational results suggest that the multicriteria model provides a promising approach to locate public services in a pluralistic society, when the individual rights are often weighed against common good.

Keywords: efficiency; data envelopment analysis; equity; median; center (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:bpj:jossai:v:2:y:2014:i:2:p:130-143:n:3

DOI: 10.1515/JSSI-2014-0130

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