Coordination Efficiency in Multi-Output Settings : A DEA Approach

We extend a recently developed methodology for measuring the efficiency of Decision Making Units (DMUs) in the case of multiple inputs and outputs. The methodology accounts for economies of scope through the use of joint inputs, and explicitly includes information about the allocation of inputs to particular outputs. We focus on possible efficiency gains by reallocating inputs across outputs. We introduce a measure of coordination efficiency, which captures these efficiency gains. We demonstrate the practical usefulness of our methodology through an efficiency analysis of education and research conducted at US universities