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B. Böhm, M. Luptacik:
"Efficiency Analysis of a Multisectoral Economic System";
Talk: The 2nd International workshop on Micro and Macro Models in Economics, Bratislava 2006, Bratislava; 2006-09-27 - 2006-09-29; in: "Micro and Macro Models in Economics", (2006), ISBN: 80-8078-135-4; 3 - 7.

The analysis of efficiency belongs to the core problems of economics. While welfare economics focuses predominantly on the criterion of Pareto efficiency to derive properties of economic equilibria, what matters for an assessment of actual economies is more the information about the degree of inefficiency. To design viable policies one needs information how far away from an efficient frontier the economy is actually situated and which actions will be able to move it closer to its boundary or may shift such boundary further out.
The problem addressed in the present paper is concerned with the seeming inapplicability of DEA to systems with interrelated and dependent units. This is the case with efficiency analysis applied to a single economy with interrelated sectors of production as represented by the Leontief input-output model. Also efficiency comparisons of different economies suffer from an obvious interdependence as given by international trade connections or as consequences of technological diffusion processes.
We show how the appropriate production possibility set has to be generated for DEA to be applicable to an economy with interrelated sectors and how the DEA model has to be formulated. We prove equivalence of this type of efficiency analysis to that of Debreu (1951) and ten Raa (1995) who formulated the problem in terms of the coefficient of resource utilisation. Using duality theory of linear programming the equivalence of the approaches permits a clear economic interpretation. The paper concludes with a numerical demonstration and an outlook to applications of extended models.