A Linear Programming Formulation of Macroeconomic Performance: The Case of Asia Pacific

Abstract

A mathematical programming technique in productivity management, known as Data Envelopment Analysis, DEA, is used to estimate how well the nations in Asia and the Pacific utilize their resources. Based on selected input and output indicators, we apply an output-oriented DEA model of Charnes, Cooper and Rhodes to assess their relative performance. For each inefficient unit (nation), DEA identifies the peer units, sources and levels of inefficiency for each input and output. The efficient units are ranked using the Andersen-Petersen's DEA model. The results generated are analyzed and compared. Keywords: Linear programming; Data Envelopment Analysis; efficiency; macroeconomic performance.