Efficiency in the generation of social welfare in Mexico: A proposal in the presence of bad outputs |
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| Institution: | 1. Department of Business, Universitat Autònoma de Barcelona, Spain;2. Instituto de Investigaciones Económicas y Empresariales, Universidad Michoacana de San Nicolás de Hidalgo, Mexico;1. Department of Management Science, University of Strathclyde, 199 Cathedral Street, Glasgow G4 0QU, UK;2. Department of Management Science, University of Strathclyde, Glasgow, UK;3. School of Management, Curtin Business School, Curtin University, Perth, Australia;4. Curtin Graduate School of Business, Curtin University, Perth, Australia;1. University of Missouri – St. Louis, United States;2. Wake Forest University, United States;3. Naval Personnel Research Study and Technology, United States;4. Integral Analytics, United States;1. CERIS, CESUR, Instituto Superior Técnico, Universidade de Lisboa, Av. Rovisco Pais 1, 1049-001 Lisboa, Portugal;2. CEG-IST, Instituto Superior Técnico, Universidade de Lisboa, Av. Rovisco Pais 1, 1049-001 Lisboa, Portugal;1. ISEG/UL—University of Lisbon, Department of Economics, UECE—Research Unit on Complexity and Economics, R. Miguel Lupi 20, 1249-078 Lisbon, Portugal;2. UAQUAP—University of Tunis, Department of Economics and Quantitative Methods, High Institute of Management (ISG), Tunis, Tunisia;1. National Forage Seed Production Research Center, Agricultural Research Service, USDA, 3450 Campus Way, Corvallis, OR 97330, USA;2. Department of Economics, Oregon State University, 319D Ballard Extension Hall, Corvallis, OR 97331, USA |
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| Abstract: | One of the main goals of any country is to secure the general welfare of society, entailing positive levels of education, health and income, coupled with low levels of social inequality. The following paper studies the efficient use of economic and social resources to generate social welfare in the presence of bad outputs in the states of Mexico during 2010. A two-level data envelopment analysis model was used to determine how efficient the 32 states of the Mexican Republic were, considering as model variables the socioeconomic indicators of the three dimensions of human development (education, health and income), and the data on poverty or inequity in the country. The analysis of the results reveals that only 5 of the 32 units studied were efficient in generating welfare and in reducing poverty, while the rest need to increase their welfare levels and especially reduce inequity in education and income using the economic and social resources they possess. |
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| Keywords: | Welfare HDI Two-level DEA Bad outputs Mexico |
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