# 11-110/3 (2011-08-09)

Author(s)
Soushi Suzuki, Sapporo University, Sapporo, Japan; Peter Nijkamp, VU University Amsterdam; Piet Rietveld, VU University Amsterdam
Keywords:
Euclidean Distance Minimization (EDM), Data Envelopment Analysis (DEA), Multiple Objective Quadratic Programming (MOQP), efficiency improving projection, tourist efficiency
JEL codes:
C44, D610, L830, R150

See also the article in

Papers in Regional Science (2011). Volume 90, issue 1, pages 67-90.

Standard Data Envelopment Analysis (DEA) is characterized by uniform proportional input reduction or output augmentation in calculating improvement projections. This paper develops a new Euclidean Distance Minimization model in the context of DEA in order to derive a more appropriate efficiency-improving projection model by means of a weighted projection function. The model is extended to the situation where some factor inputs are fixed, for instance, due to lumpiness or natural constraints. The extended DEA model is illustrated in the context of regional planning by using a data set on Italian tourist destination regions.