Abstract:

Data envelopment analysis (DEA) which can also be used to measure the efficiency of countries, is a multi-criteria decision making method which can be used to measure the efficiency of homogenous decision making units (DMUs) producing the same outputs using the same inputs. Although the DEA models had been deterministic in nature, in the subsequent years after the origin of the method stochastic DEA models were introduced, which enables the inclusion of a variety of uncertainties in the production process and possible measurement errors related to the variables used in the model. In this study the efficiency scores presenting the macroeconomic performance of 13 European countries had been calculated by using the chance constrained DEA (CCDEA) model, is one of the stochastic DEA models in the literature, and the results had been compared with the results of the deterministic DEA model. The obtained results had indicated that the efficiency scores had been increasing as the stochastic variability increased and depending on this the number of efficient countries had showed increase. It is determined that there was also statistically significant difference among the results obtained through the deterministic and chance constrained DEA models

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