Creating Composite Indicators with DEA and Robustness Analysis: the case of the Technology Achievement Index

Composite indicators are regularly used for benchmarking countries’ performance, but equally often stir controversies about the unavoidable subjectivity that is connected with their construction. Data Envelopment Analysis helps to overcome some key limitations, viz., the undesirable dependence of final results from the preliminary normalization of sub-indicators, and, more cogently, from the subjective nature of the weights used for aggregating. Still, subjective decisions remain, and such modelling uncertainty propagates onto countries’ composite indicator values and relative rankings. Uncertainty and sensitivity analysis are therefore needed to assess robustness of final results and to analyze how much each individual source of uncertainty contributes to the output variance. The current paper reports on these issues, using the Technology Achievement Index as an illustration.factor is more important in explaining the observed progress.composite indicators, aggregation, weighting, Internal Market

Creating composite indicators with DEA and robustness analysis: The case of the technology achievement index.

Composite indicators are regularly used for benchmarking countries’ performance, but equally often stir controversies about the unavoidable subjectivity that is connected with their construction. Data Envelopment Analysis helps to overcome some key limitations, viz., the undesirable dependence of final results from the preliminary normalization of sub-indicators, and, more cogently, from the subjective nature of the weights used for aggregating. Still, subjective decisions remain, and such modelling uncertainty propagates onto countries’ composite indicator values and relative rankings. Uncertainty and sensitivity analysis are therefore needed to assess robustness of final results and to analyze how much each individual source of uncertainty contributes to the output variance. The current paper reports on these issues, using the Technology Achievement Index as an illustration.Indexes; Indicators; Robustness; Technology;

A generalized fuzzy Multiple-Layer NDEA: An application to performance-based budgeting

Network data envelopment analysis (NDEA) is capable of considering operations and interdependence of a system’s component processes to measure efficiencies. There are numerous performance evaluation applications in which some indicators have hierarchical structures with a considerable number of sub-indicators. This problem of ignoring the hierarchical structure of indicators weakens the discrimination power of NDEA models and may result in inaccurate efficiency scores. In this paper we propose a generalized fuzzy Multiple-Layer NDEA (GFML-NDEA) model and GFML-NDEA-based composite indicators (GFML-NDEA-CI) to incorporate the hierarchical structures of indicators in the ambit of the particular two-stage NDEA models. To demonstrate the usefulness of the GFMLNDEA-CI model proposed, its application was tested by evaluating the efficiency of the performance-based budgeting (PBB) system in 14 governmental agencies in Iran. The comparative analysis results obtained from the GFML-NDEA-CI (multi-layer) model with those from the single-layer fuzzy NDEA-CI model indicate that the number of efficient decision-making units (DMUs) in the one-layer model is eight, whereas it is solely one DMU in the multi-layer model. The discrimination power of the multi-layer model proposed is significantly increased by observing that standard deviation of efficiency scores are increased by 41%, 61%, and 84% for possibility levels 0, 0.5, and 1, respectively. This is obtained while reducing information entropy, thus suggesting that the proposed model yields more reliable scores

Development of a Global Index Measuring National Policy Commitments to HIV Prevention and Treatment among People Who Inject Drugs

Background: People who inject drugs (PWID) around the world are disproportionately affected by the HIV epidemic. National policy responses to the epidemic heavily influence risk factors for HIV acquisition among this key group. Prior efforts to monitor national policy responses to HIV/AIDS among PWID were limited both in scope and coverage. In this paper we develop and validate the HIV-PWID Policy Index (HPPI) to benchmark and monitor national commitments to HIV prevention and treatment among PWID. Methods: Composite indicator was constructed employing fuzzy multilayer data envelopment analysis (FMLDEA). Model inputs based on data from 105 countries included 27 variables measured across six conceptual domains, including needle and syringe programs, opioid substitution treatment, testing and counseling, information and education, monitoring and evaluation, and legal and policy climate. Results: According to the HPPI, the top performing countries in commitment to HIV prevention and treatment among PWID were Spain (0.988), Switzerland (0.982), Luxembourg (0.970), Moldova (0.970), and Kyrgyzstan (0.945), whereas the poorest performing included Nicaragua (0.094), Japan, (0.094), Cape Verde (0.097), Syria (0.174), and Benin (0.185). Regionally, commitment to HIV services targeting PWID was highest among European countries (0.81) and lowest among African countries (0.50), with Oceania (0.76), Asia (0.66), and the Americas (0.56) in the mid-range. Subregional differences were even more prominent, with West and Central European nations (0.84) and Central American nations (0.22) earning the highest and lowest HPPI scores, respectively. Conclusions: The HPPI documented substantial national and regional variation in policy responses to the HIV epidemic among PWID. Our analysis also revealed that many countries have limited HIV/AIDS data collection and monitoring capabilities. Continued enhancement and standardization of global HIV/AIDS monitoring efforts are therefore vital to articulated national and international benchmarking and performance assessment goals

The competitiveness of nations and implications for human development

This is the post-print version of the final paper published in Socio-Economic Planning Sciences. The published article is available from the link below. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. Copyright @ 2010 Elsevier B.V.Human development should be the ultimate objective of human activity, its aim being healthier, longer, and fuller lives. Thus, if the competitiveness of a nation is properly managed, enhanced human welfare should be the key expected consequence. The research described here explores the relationship between the competitiveness of a nation and its implications for human development. For this purpose, 45 countries were evaluated initially using data envelopment analysis. In this stage, global competitiveness indicators were taken as input variables with human development index indicators as output variables. Subsequently, an artificial neural network analysis was conducted to identify those factors having the greatest impact on efficiency scores

Development and application of a composite circularity index

Resource depletion and environmental pollution are increasingly a matter of concern for their adverse effects on ecosystems, human health, and the economy. Circular Economy (CE) practices can help us address these chal-lenges. This paper proposes a composite circularity index (CI) to assess the level of implementation of CE practices. The main advantage of the proposed index is its ability to combine multiple indicators of circularity for different units operating in a given sector (given as inputs), using a 'Benefit of the Doubt' model. This new model is innovative in the manner it deals with ordinal scales and also by considering both relative and absolute performance indices. These indices are computed using mathematical programming tools, building on ideas from Data Envelopment Analysis models.Although the model can be applied to any sector, this work addresses the hotel industry in particular. The selection of indicators for this CI was based on seven blocks of the Circular Economy Action Plan and a literature review of circular practices. An application of the proposed index is performed by using data from Portuguese and Spanish hotels. The proposed CI allows the identification of the organizations with the best and worst performance in implementing the CE practices and clarifying the benchmarks they could follow to improve their level of circularity. Moreover, the index analysis also provides specific targets for improvement, indicating which circular practices should be improved for the lower performers to reach the implementation levels of the best performers.info:eu-repo/semantics/publishedVersio

Business analytics adoption and technological intensity: An efficiency analysis

Despite the overwhelming popularity of business analytics (BA) as an evidence-based decision support mechanism, the impact of its adoption on organizational performance has received scant attention from the research community. This study aims to unfold the adoption efficiencies of BA and its applications by proposing a data envelopment analysis (DEA) methodology to holistically assess the underlying factors with respect to the level of achievement regarding organizational performance, operational performance, and financial performance. Furthermore, the study unveils the firm-level and sectoral-level discrepancies in BA adoption efficiency in different industry settings. Relying on survey data obtained from 204 executives in various industries, this study provides empirical support for the cross-industry differences in BA adoption efficiencies. The results show that the firms in low-tech industries seem to achieve the highest efficiency from adopting BA regarding its influence on firm performance

Patient Satisfaction in the Spanish National Health Service: Partial Least Squares Structural Equation Modeling

The aim of this article was to determine which key indicators influence patient satisfaction with the Spanish NHS to provide useful information for policy decision-making. A total of 33 variables for each of the 17 Spanish autonomous communities were collected from the statistical portal of the Spanish Ministry of Health, Social Services, and Equality between 2005 and 2016. A cross-sectional study was applied using Partial Least Squares to a Structural Equation Model (PLS-SEM). The influence of expenditures, resource allocation, and safety were hypothesized about patient satisfaction. Gross Domestic Product (GDP) and life expectancy were used as control variables. Moreover, the influence of resource allocation on use was tested. The model explained 57.1% of patient satisfaction with the Spanish NHS. It was positively influenced mainly by resource allocation and expenditures, followed by safety and life expectancy. Additionally, resources directly influenced the level of use. The number of hospital beds, hemodialysis equipment, rate of adverse drug reactions, and expenditure positively influenced patient satisfaction. In contrast, the number of posts in day hospitals, the hospital infection rate, and the percentage of pharmacy spending negatively influenced patient satisfaction

Traffic Police Effectiveness and Efficiency Evaluations, an Overview of Methodological Considerations

Context: Every government implements various policies to mitigate road traffic injuries (RTIs). Many of these interventions are performed by traffic police. To evaluate effectiveness and efficiency of police enforcement, numerous studies have been conducted. Potential capabilities of epidemiology could get opportunity to improve these studies. The aim of this study was to extract and discuss some related methodological points of traffic police effectiveness and efficiency from related studies, in view of epidemiology discipline. Evidence Acquisition: Related articles were searched with “traffic police”, “effectiveness”, “efficiency” and “road safety” keywords in ScienceDirect, PubMed and Safetylit databases. Related papers were selected and read carefully to summarize and discuss the epidemiological points with aims of giving clues to improve quality of studies. Results: From a total of 797 articles, 20 were eligible which among them 17 articles were about effectiveness and 3 of them were about efficiency evaluations. Discussed points were the method of study, taking a holistic view to all positive and negative side effects, desired inputs and outputs, relation pattern between police enforcement and outcome and potential confounders. Conclusions: Better understanding of the effectiveness and efficiency mechanism and having valid evaluation required considering specific theories and points in this field. Applying a dynamic approach with considering epidemiological concepts and sophisticated statistical models could improve quality of studies in this field