An overview of data envelopment analysis application in studies on the socio-economic performance of OECD countries

Abstract

Due to large and deepening development disparities among countries, comparisons across them have gained utmost importance, both in theoretical and empirical sense. At the same time, overuse of natural resources and climate change are among the most difficult issues today’s world is facing. Consequently, there is a growing research interest in investigating the performance of countries, especially in terms of environmental and energy efficiency. This paper brings a literature overview on the application of data envelopment analysis (DEA) to studies that empirically explore socio-economic efficiency of OECD (Organisation for Economic Co-operation and Development) member countries. The listed papers are categorised with regard to the relevance given to economic, environmental or energy indicators. Their basic content is summarised, along with the major findings. In this way, both measurement of countries’ performance and the nonparametric approach of DEA have been given deserved attention.