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Non-parametric methods applied in the efficiency analysis of European structural funding in Romania

Roman, Monica and Gotiu (Lucaciu), Liliana (2017): Non-parametric methods applied in the efficiency analysis of European structural funding in Romania. Published in: Journal of Applied Quantitative Methods , Vol. 18, No. 2 (30 June 2017)

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Abstract

One of the most widely used methods in assessing the efficiency of public policies and programs for a set of units is Data Envelopment Analysis (DEA). DEA is a non-parametric method which identifies an efficiency frontier on which only the efficient Decision Making Units (DMUs) are placed, by using linear programming techniques. By applying non-parametric techniques of frontier estimation, the efficiency of a DMU can be measured by comparing it with an identified efficiency frontier. In this paper we have used DEA for evaluating the efficiency of the European structural funds allocated to finance the educational infrastructure through the Regional Operational Program 2007-2013, implemented in Romania. The output variables measure the educational performance as well as the school drop-out rate, while the focal input variable is the value of European funds. Romanian counties are considered to be the decision making units (DMUs) and our results confirm the deep disparities existing between Romanian counties concerning the efficient use of European structural funds.

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