DEA METHOD AS A TOOL FOR COMPARATIVE ANALYSIS OF THE EFFICIENCY OF NATIONAL ECONOMIES

Abstract

The paper deals with the theory of comparative analysis of the efficiency of national economies using the nonparametric method of data envelopment analysis (DEA).
 The main works on the use of data envelopment analysis are studied. In order to develop the ideas of F. Caselli, W. J. Coleman II., J. Growiec it is proposed to take into account that the goal of producers in modern economy is not only to increase technical efficiency, which is expressed in reducing stock and labor intensity, but also to increase economic (in a narrow sense) efficiency that is reduction of the real prices of the used production factors. The subject of the research is an adequate representation of the interdependence of these "competing" goals in the theory of the efficiency frontiers. In the study, all efficiency frontiers were constructed in a purely nonparametric way reflecting a single period (in a standard form – a year). The goal is to solve the problem of incompleteness of a purely technological approach to the world efficiency frontiers that is to supplement the classical DEA model in a way to make it possible to build the boundaries of technical and economic efficiency using both methods – the envelopments of the actual states (points) of the countries and the envelopments of their national functions of the product distribution and its price. In accordance with the content of the proposed model of Paired Efficiency Frontier Model (PEF model), the geometric method is chosen as the main method for studying and interpreting the results obtained. Therefore, it is proven that it is possible to display a frontier using the envelopment method of functions distribution (straight lines) in one coordinate system as an envelopmentl of actual states (points) in an alternative system. This, in turn, significantly simplifies the range estimation to these borders.
 In the course of the research, the following goals are set: to determine the algebraic forms of linear programming problems that adequately represent the frontiers of technical and economic efficiency; to outline the main points of view regarding the construction of a global technological frontier and to justify the feasibility of complementing it with a global economic frontier.
 The proposed model contains four efficiency frontiers – technological and economic frontiers constructed using the envelopment method of the actual states, and similar frontiers representing the envelopments of the functions of the product distribution and its price. In accordance with the content of the proposed model, the geometric method is chosen as the main method for studying the frontiers of efficiency and interpreting the results obtained. Hence, it is possible to display a frontier using the envelopment method of functions distribution (straight lines) in one coordinate system as an envelopmentl of actual states (points) in an alternative system.