Comparative analysis of regions in the Czech Republic according to choosen criteria using the DEA method

  • Jana Friebelová University of South Bohemia in České Budějovice
  • Ludvík Friebel University of South Bohemia in České Budějovice
  • Marek Šulista University of South Bohemia in České Budějovice
Keywords: Data Envelopment Analysis, Regions, Efficiency, Quality of Life, Malmquist Index, Regression

Abstract

Our work has several aims. We have evaluated the Quality of life of the regions (NUTS 3 regions) in the Czech Republic, according to the selected criteria by the Data Envelopment Analysis (DEA) method. This method was initially proposed to evaluate the efficiency. In this paper, the level of efficiency represents the level of life quality. The efficiency (quality of life) is in this case represented as a share of an output in weighted sum of inputs. In other words, it represents a certain degree to which the desirable output can offset undesirable indicators. Hence, we have considered three input types (the unemployment rate, criminality, and the specific emissions) and one output (the average salary). In addition to the efficiency score, DEA method provides weights of particular inputs and outputs. These weights are used to find contributions of particular criteria to the achieved score. This enables us to determine the strong and weak points of the districts. At the same time, we have observed a possible connection between the achieved efficiency score and the average prices of dwellings in the same year. In another part, we evaluate the development of the life quality in regions in time using Malmquist index. Based on the obtained results, we have made a regression model describing the influence of this index on the dwelling prices in the following year.
Published
2012-10-05
Section
Articles