REGIONAL EFFICIENCY ASSESSMENT USING DEA WINDOW ANALYSIS

A regional disparity is becoming increasingly important growth constraint. Policy makers need quantitative knowledge to design effective, targeted policies. In this paper, regional efficiency of Croatian counties is measured (2005-2007) using data envelopment analysis (DEA). Regional efficiency is driven by naturally, historically and politically conditioned unequal county positions over which counties do not have total control. Categorical approach is introduced as an extension to the basic DEA models. This approach, combined with window analysis, changes relations among efficiency scores in favour of continental counties. The results should assists policy makers in designing effective regional policies by identifying main regional disparity determinants using an improved DEA model.