Productivity Assessment and Improvement Measurement of Decision Making Units - An Application for Ranking Cities in Israel

Keywords

Data Envelopment Analysis, Malmquist Index, ranking methods

Abstract

In this paper we will demonstrate how productivity and improvement rate of urban organizational units (called also Decision Making Units - DMU's) may be assessed when measured along several time periods. The assessment and subsequent ranking of cities is achieved by means of the Data Envelopment Analysis (DEA) methodology to determine DMU's efficiency for each period, the Cross Efficiency ranking method to rank DMU's and the Malmquist Index approach which measures changes in productivity relative to a base period. The above combined methodology will be applied to a case study of 70 Israeli cities in years 2006, 2007 and 2008.

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