THE APPLICATION OF THE NON-PARAMETRIC METHODOLOGY DEA: THE CASE OF THE REPUBLIC OF NORTH MACEDONIA

Abstract

The application of the analytical methods and techniques of the Operational Research discipline can help in making better decisions, which thus allow decrease of costs, increase of revenue and profit, as well as market share, efficiency, etc. The non-parametric methodology Data Envelopment Analysis (DEA) is considered to be the leading methodology for measuring the relative efficiency of the Decision Making Units (DMUs). The DMUs should be homogeneous, i.e. they should use the same inputs to produce the same outputs. Ever since its beginnings up to today, the application of this methodology has noted a significant growth. It has been used in education, health care, banking, agriculture, the defence sector, energetics, tourism, sports, supply chain, transportation, public policy, etc. The aim of this paper is to provide a literature review of the application of DEA in the Republic of North Macedonia. On the basis of the reviewed papers published in journals and conference proceedings, books, Master’s theses and Doctoral dissertations, it has been confirmed that this methodology is most commonly used in the finance sector.