Empirical analysis of efficiency improvement in public corporations using data envelopment analysis (DEA)

Abstract

This chapter tries to analyze how the economic efficiency of 27 public corporations has been changed between 2007 and 2015 using the semi-oriented radial model of data envelopment analysis. The results of analyses suggest that DEA can produce fairly robust results on the trend of efficiency and suggest the possibility of using DEA for performance evaluation of public corporations. In particular, we can classify the efficiency trends into four types: monotonic increase, U-shaped, inversed-U shape and monotonic decrease. Such classification suggests the heterogeneous trends in efficiency of public corporations and calls for more individualized performance evaluation strategies according to efficiency level of each public corporation.