This paper deals with a method of measuring and comparing the performance of government and outsourcing agencies using data envelopment analysis. Data envelopment analysis is a promising method as an alternative to ratio analysis and regression analys...
This paper deals with a method of measuring and comparing the performance of government and outsourcing agencies using data envelopment analysis. Data envelopment analysis is a promising method as an alternative to ratio analysis and regression analysis that have been used as tools for performance measurement. Data envelopment analysis measures the relative efficiency of decision-making units, and especially can be used for performance measurement of the public sector. This article explains the usefulness of data envelopment analysis, methods of building linear programming model through the multiplier model and envelopment model, and then suggests methods of measuring and evaluating the relative performance of government and outsourcing agencies using an illustrative example.