Economic Efficiency and Benchmarking
Course content
Assessing the efficiency of resource utilization is important, as this is the first step in subsequently improving the performance. This is relevant in both the private sector, due to the intensity of competition, and also in the public sector, where budget cuts and demands for improved efficiency are common.
This course covers specific benchmarking methods that are very
useful in practice for evaluating the relative performance of
different organizational units. Specifically, the course will focus
on the non-parametric Data Envelopment Analysis (DEA) approach, and
other related approaches. As well as providing measures
for the extent of the (in)efficiency, DEA also identifies role
model units which less efficient units can emulate, as well as
performance targets at which inefficient units might aim.
Benchmarking analysis thus supports the identification and
adoption of operating practices conducive to efficient utilization
of resources. Efficient resource utilization is generally important
for sustainability, but the flexibility of DEA- and related models
also allows for explicit incorporation of undesirable outputs from
production, such as pollution, CO2 emissions etc. when benchmarking
performance.
Besides covering both theoretical and practical aspects of the use
of DEA, the course also looks at some real life empirical
applications, in both private and public sector
organizations.
MSc Programme in Agricultural Economics
MSc Programme in Environmental and Natural Resource Economics
MSc Programme in Mathematics-Economics
The primary objective of the course is to provide the students
with relevant knowledge, practical skills, and competences in
benchmarking analysis using non-parametric approaches like Data
Envelopment Analysis (DEA).
After completing the course the student should be able to:
Knowledge:
Students are expected to be able to
- Explain the differences between different DEA model specifications and justify the choices of specific models for a given problem context.
- Explain the differences between the envelopment and multiplier formulations of the DEA models and their respective uses.
- Argue for the relevance of different model extensions for specific scenarios, including but not limited to the use of weight restrictions and different projections onto the efficiency frontier.
Skills:
Students are expected to be able to
- Calculate efficiency scores and identify the corresponding benchmarks, peers & weights in simple examples.
- Use appropriate software to conduct empirical benchmarking analysis.
- Interpret the results from benchmarking analysis and discuss their implications for management.
Competences:
Students are expected to be able to
- Use non-parametric benchmarking techniques to investigate various real-life empirical issues.
- Critically evaluate the appropriateness of specific non-parametric benchmarking modelling approaches for a given practical scenario and the corresponding results.
- Achieve digital competences w.r.t. data collection & handling, empirical analysis and use of appropriate software.
The course will involve combinations of lectures, small examples and exercises done in class.
Students need knowledge and competences in basic microeconomic
production theory in order to successfully participate in this
course. These competences can, for example, be obtained by
attending the courses LOJB10259 (Mikroøkonomi) and LOJF10262
(Produktionsøkonomi).
Competences and interest in data handling and empirical analysis
are recommended.
Academic qualifications equivalent to a BSc degree is
recommended.
Besides the oral examination, including justifications for the given marks, there will be the following forms of feedback during the course:
Discussions and answering questions during lectures.
Discussions and answering questions related to solving exercises.
Supervision of (ie discussing and answering questions related to) the analysis that will be done for the synopsis.
- ECTS
- 7,5 ECTS
- Type of assessment
-
Oral examination, 30 minutes
- Type of assessment details
- Individual oral presentation of the report and examination. No preparation time.
- Exam registration requirements
-
The student must hand in a written (group) report.
- Marking scale
- 7-point grading scale
- Censorship form
- No external censorship
Several internal examiners
- Re-exam
-
The same as the ordinary exam.
If the student has not handed in the project report, then it must be handed in individually instead of in a group, three weeks prior to the re-exam. It must be approved before the exam.
Criteria for exam assessment
To receive a mark of 12 the student have to show complete fulfillment of the learning outcomes.
Single subject courses (day)
- Category
- Hours
- Lectures
- 32
- Preparation
- 75
- Practical exercises
- 28
- Project work
- 60
- Exam Preparation
- 10
- Exam
- 1
- English
- 206
Kursusinformation
- Language
- English
- Course number
- NIFK16001U
- ECTS
- 7,5 ECTS
- Programme level
- Full Degree Master
- Duration
-
1 block
- Placement
- Block 2
- Schedulegroup
-
A
- Capacity
- 50
The number of seats may be reduced in the late registration period - Studyboard
- Study Board of Natural Resources, Environment and Animal Science
Contracting department
- Department of Food and Resource Economics
Contracting faculty
- Faculty of Science
Course Coordinator
- Mette Asmild (4-71696577446d6a7673326f7932686f)
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