A nonparametric economic index to measure the collective effort of national-level economic activities directed towards greater efficiency
For an economic system such as a nation, assessing the efforts of its constituent economic activities that are directed toward greater efficiency, which in aggregate determines the overall efficiency at the national level is important. Such an exercise provides information on which constituent econo...
| Main Authors: | , , , , , , |
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2019-01-01
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| Series: | Cogent Economics & Finance |
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| Online Access: | http://dx.doi.org/10.1080/23322039.2019.1695997 |
| _version_ | 1819290558646976512 |
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| author | Armando Elizondo-Noriega Idalia Estefania Ponce-Jaramillo Sonia Valeria Avilés-Sacoto David Güemes-Castorena Víctor G. Tercero-Gómez Naveen Tiruvengadam Mario G. Beruvides |
| author_facet | Armando Elizondo-Noriega Idalia Estefania Ponce-Jaramillo Sonia Valeria Avilés-Sacoto David Güemes-Castorena Víctor G. Tercero-Gómez Naveen Tiruvengadam Mario G. Beruvides |
| author_sort | Armando Elizondo-Noriega |
| collection | DOAJ |
| description | For an economic system such as a nation, assessing the efforts of its constituent economic activities that are directed toward greater efficiency, which in aggregate determines the overall efficiency at the national level is important. Such an exercise provides information on which constituent economic activities are underperforming and require attention. This article presents an economic performance index called the Efficiency Effort Index (EE-Index) that measures such efforts of economic activities directed at efficiency improvement. This nonparametric, dimensionless index is computed based on a combination of Leveled-Data-Envelopment-Analysis (LDEA) and Markov Chains (MCs). LDEA compares diverse decision-making units to yield a set of efficiency scores, which are first discretized and then subjected to first-order MC treatment. The EE-Index was computed for a chosen nation and compared with that nation’s average relative efficiency (ARE) score, another performance index presented in this study, and GDP per capita. This comparison suggested that the slow growth in the chosen country’s GDP coincided with a general declining trend exhibited in the country’s efforts and aggregate efficiency achieved by these efforts, measured, respectively, by the EE-Index and the ARE-Index. |
| first_indexed | 2024-12-24T03:24:39Z |
| format | Article |
| id | doaj.art-9e7eeaea858b47fe91c95961ef21442a |
| institution | Directory Open Access Journal |
| issn | 2332-2039 |
| language | English |
| last_indexed | 2024-12-24T03:24:39Z |
| publishDate | 2019-01-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj.art-9e7eeaea858b47fe91c95961ef21442a2022-12-21T17:17:22ZengTaylor & Francis GroupCogent Economics & Finance2332-20392019-01-017110.1080/23322039.2019.16959971695997A nonparametric economic index to measure the collective effort of national-level economic activities directed towards greater efficiencyArmando Elizondo-Noriega0Idalia Estefania Ponce-Jaramillo1Sonia Valeria Avilés-Sacoto2David Güemes-Castorena3Víctor G. Tercero-Gómez4Naveen Tiruvengadam5Mario G. Beruvides6Tecnologico de Monterrey, Campus MonterreyTecnologico de Monterrey, Campus MonterreyUniversidad San Francisco de Quito USFQ, Campus CumbayáTecnologico de Monterrey, Campus MonterreyTecnologico de Monterrey, Campus MonterreyTexas Tech UniversityTexas Tech UniversityFor an economic system such as a nation, assessing the efforts of its constituent economic activities that are directed toward greater efficiency, which in aggregate determines the overall efficiency at the national level is important. Such an exercise provides information on which constituent economic activities are underperforming and require attention. This article presents an economic performance index called the Efficiency Effort Index (EE-Index) that measures such efforts of economic activities directed at efficiency improvement. This nonparametric, dimensionless index is computed based on a combination of Leveled-Data-Envelopment-Analysis (LDEA) and Markov Chains (MCs). LDEA compares diverse decision-making units to yield a set of efficiency scores, which are first discretized and then subjected to first-order MC treatment. The EE-Index was computed for a chosen nation and compared with that nation’s average relative efficiency (ARE) score, another performance index presented in this study, and GDP per capita. This comparison suggested that the slow growth in the chosen country’s GDP coincided with a general declining trend exhibited in the country’s efforts and aggregate efficiency achieved by these efforts, measured, respectively, by the EE-Index and the ARE-Index.http://dx.doi.org/10.1080/23322039.2019.1695997economic activitiesnational efficiencynational productivityglobal economic-performance index |
| spellingShingle | Armando Elizondo-Noriega Idalia Estefania Ponce-Jaramillo Sonia Valeria Avilés-Sacoto David Güemes-Castorena Víctor G. Tercero-Gómez Naveen Tiruvengadam Mario G. Beruvides A nonparametric economic index to measure the collective effort of national-level economic activities directed towards greater efficiency Cogent Economics & Finance economic activities national efficiency national productivity global economic-performance index |
| title | A nonparametric economic index to measure the collective effort of national-level economic activities directed towards greater efficiency |
| title_full | A nonparametric economic index to measure the collective effort of national-level economic activities directed towards greater efficiency |
| title_fullStr | A nonparametric economic index to measure the collective effort of national-level economic activities directed towards greater efficiency |
| title_full_unstemmed | A nonparametric economic index to measure the collective effort of national-level economic activities directed towards greater efficiency |
| title_short | A nonparametric economic index to measure the collective effort of national-level economic activities directed towards greater efficiency |
| title_sort | nonparametric economic index to measure the collective effort of national level economic activities directed towards greater efficiency |
| topic | economic activities national efficiency national productivity global economic-performance index |
| url | http://dx.doi.org/10.1080/23322039.2019.1695997 |
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