Investigating socio-economic ranking of cities in Turkey using data envelopment analysis (DEA) and linear discriminant a
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Investigating socio-economic ranking of cities in Turkey using data envelopment analysis (DEA) and linear discriminant analysis (LDA) Mehmet Güray Ünsal1 · Ezgi Nazman2
© Springer Science+Business Media, LLC, part of Springer Nature 2018
Abstract Decision makers have to analyze both social and economic situation of the cities because of the budget constraint of the governments while considering investment to the cities. In this respect, data envelopment analysis (DEA) has been widely used to determine the efficiency of the cities and to make clear the needs of the cities calling decision making units. In this study, socio-economic ranking of the cities of Turkey is presented by using DEA and linear discriminant analysis and the cities are compared to each other according to the socio-economic development efficiency scores. Then, the highlighted inferences about the cities are presented according to the NUTs-1 classification. Keywords Socio-economic data · Linear discriminant analysis · Ranking · Efficiency measurement · Data envelopment analysis
1 Introduction Socio-economic development is the process which helps improving the economic and social well-being of a country, region or city. Efficiency measurement is a helpful tool to measure the socio-economic development of the cities and to rank their efficiencies. One of the popular mathematical modelling methods in efficiency measurement is data envelopment analysis (DEA). As introduced in Charnes et al. (1978), it is a mathematical programming method for the assessment of relative efficiency of a set of decision making units (DMUs) that uses inputs to produce outputs. However, decision makers are often interested in determination of the most efficient DMU in application.
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Mehmet Güray Ünsal [email protected]; [email protected] Ezgi Nazman [email protected]
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Department of Statistics, Faculty of Art and Science, U¸sak University, U¸sak, Turkey
2
Department of Statistics, Faculty of Science, Gazi University, Ankara, Turkey
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Ann Oper Res
As mentioned above, decision makers are interested in social and economic situation of countries, geographical regions and cities etc. and several studies has been done to investigate socio-economic performance of these units in literature. Golany and Thore (1997) have applied DEA to rank 72 developed and developing countries by taking account of social variables such as education, health, and welfare policy. Kocher et al. (2006) measured productivity in leading edge economic research by using DEA for 21 countries belonging to the Organization for Economic Cooperation and Development (OECD). Principal Component Analysis (PCA) in combination with DEA was applied to estimate the relative efficiency of developing countries in Adler et al. (2010). Poveda (2011) analyzed economic development and growth of Colombian departments by using super efficiency method in over the period 1993–2007. Poldaru and Roots (2014) investigated the application of a PCA–DEA model for Estonian countries. Örkçü and Bal (2012) used
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