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4260. Adding counterfactual interpretation to DEA
Invited abstract in session WC-48: DEA methodological developments I, stream Data Envelopment Analysis and its Application.
Wednesday, 12:30-14:00Room: 60 (building: 324)
Authors (first author is the speaker)
| 1. | Gordana Savic
|
| Faculty of Organizational Sciences, University of Belgrade | |
| 2. | Ognjen Nikolić
|
| Department of Operations Research and Statistics, Faculty of Organizational Sciences, University of Belgrade | |
| 3. | Sandro Radovanović
|
| Faculty of Organizational Sciences, University of Belgrade |
Abstract
This paper investigates the integration of the Synthetic Control Method (SCM), a proven method to analyze an impact of policy interventions, and Data Envelopment Analysis (DEA), a well-known mathematical technique for measuring relative efficiency of decision-making units with multiple inputs and multiple outputs, to evaluate the effect of policy interventions on the efficiency of decision-making unit. Specifically, this paper applies these methodologies to assess the efficiency of Serbian banks over a given period, focusing on the influence of a merger between two principal banks on their operational performance, and answering a counterfactual question whether efficiency of a bank would be the same if a merger did not happen. The study demonstrates that SCM can be an effective tool for analyzing the repercussions of policy measures on decision-making unit efficiency. In other words, we suggest combining these two methods in the future, in order to conclude whether an intervention really has an impact on efficiency.
Keywords
- Data Envelopment Analysis
Status: accepted
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