Article ID Journal Published Year Pages File Type
6295546 Ecological Indicators 2012 12 Pages PDF
Abstract
The non-parametric Data Envelopment Analysis approach is increasingly used to construct composite indicators for country performance monitoring, benchmarking, and policy evaluation in a large variety of fields. The flexibility in the definition of aggregation weights is praised as the method's most important advantage: DEA allows each evaluated country to look for its own optimal weights that maximize the composite indicator relative to the other countries. However, this flexibility also carries a potential disadvantage as it may allow countries to appear as a brilliant performer in a manner that is hard to justify: by ignoring or overemphasizing one or multiple of the judiciously selected performance indicators. To illustrate this issue of undesirable specialization in DEA-based evaluations, this paper compares the Environmental Performance Index (EPI) as computed by the optimistic and pessimistic version of the DEA-model as proposed by Zhou et al. (2007). Based on both computed composites, undesirable specialization in performance is identified.
Related Topics
Life Sciences Agricultural and Biological Sciences Ecology, Evolution, Behavior and Systematics
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