Evaluating Efficiency-Effectiveness-Equality Trade-Offs: A Data Envelopment Analysis Approach

Abstract

This paper presents a resource allocation model based on Data Envelopment Analysis (DEA). The model extends the original objective of the DEA methodology from measuring efficiency to include the evaluation of various aspects of effectiveness and equality considerations. The model is formulated as a linear program that can be solved by means of a Dantzig-Wolfe decomposition algorithm. Theoretical properties of the model are compared with those corresponding to the model developed by Mandell (Mandell, M. B. 1991. Modelling effectiveness-equity trade-offs in public service delivery systems. Management Sci. 37(4) 467–482.) to evaluate the trade-off between equity and effectiveness. A numerical example is used to illustrate the comparison between the models.