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Regional Efficiency Improvement by Means of Data Envelopment Analysis through Euclidean Distance Minimization including Fixed Input Factors - An Application to Tourist Regions in Italy

Soushi Suzuki, Peter Nijkamp and Piet Rietveld
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Soushi Suzuki: Sapporo University, Sapporo, Japan

No 11-110/3, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: See also the article in Papers in Regional Science (2011). Volume 90, issue 1, pages 67-90. Standard Data Envelopment Analysis (DEA) is characterized by uniform proportional input reduction or output augmentation in calculating improvement projections. This paper develops a new Euclidean Distance Minimization model in the context of DEA in order to derive a more appropriate efficiency-improving projection model by means of a weighted projection function. The model is extended to the situation where some factor inputs are fixed, for instance, due to lumpiness or natural constraints. The extended DEA model is illustrated in the context of regional planning by using a data set on Italian tourist destination regions.

Keywords: Euclidean Distance Minimization (EDM); Data Envelopment Analysis (DEA); Multiple Objective Quadratic Programming (MOQP); efficiency improving projection; tourist efficiency (search for similar items in EconPapers)
JEL-codes: C44 D61 L83 R15 (search for similar items in EconPapers)
Date: 2011-08-09
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Journal Article: Regional efficiency improvement by means of data envelopment analysis through Euclidean distance minimization including fixed input factors: An application to tourist regions in Italy (2011) Downloads
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