Quantitative evaluation of nation stability

Takao Tsuneyoshi, Akihiro Hashimoto and Shoko Haneda ()

Journal of Policy Modeling, 2012, vol. 34, issue 1, 132-154

Abstract: This paper quantitatively evaluates nation stability, defined as the state of a country's social and economic system as measured by multiple evaluation indicators, and observes its transitions. Data Envelopment Analysis/Malmquist Index (DEA/MI) methodology is applied to the panel data for 97 countries for the period 1981–2004, although the DEA application is totally different from the DEA efficiency/productivity analysis. This analysis includes a “unified” country (Germany) and “split” countries (former Soviet Union, Czechoslovakia, and Yugoslavia). Using the novel panel-data handling proposed in this study, we demonstrate shifts in stability before/after the unification or split. The stability of split countries fell by 50% or more, showing that they were extremely unstable before the split. The use of lower-bound DEA together with ordinary DEA enables a country's stability to be evaluated in terms of both negative and positive aspects.

Keywords: Nation stability; Data envelopment analysis; Malmquist index; Merger; Split; Unified country; Split country (search for similar items in EconPapers)
JEL-codes: C61 C63 Z00 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jpolmo:v:34:y:2012:i:1:p:132-154

DOI: 10.1016/j.jpolmod.2011.06.003

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