Regional Economics: Theory and Practice

Hermeneutics of the DEA analysis methodology: A case of comparative effectiveness assessment of the consolidated budget performance by the constituent entities of the Russian Federation in the area of preschool education

Vol. 15, Iss. 8, AUGUST 2017

Received: 24 March 2017

Received in revised form: 22 May 2017

Accepted: 26 June 2017

Available online: 15 August 2017


JEL Classification: H52, I22

Pages: 1527–1539

Porunov A.N. Samara State Technical University, Samara, Russian Federation

Subject This article discusses the key points of the methodology for relative efficiency assessment of financial management based on Data Envelopment Analysis (DEA analysis). I used the DEA analysis for the comparative effectiveness assessment, in a comprehensive manner, of the consolidated budget performance by the Russian Federation entities and territorial public non-budgetary funds for preschool education, as a result of 2015.
Objectives The article aims to address key issues in the practice of DEA analysis, identify the RF entities showing the most productive practice in the implementation of the consolidated budget in preschool education, and rate them on the basis of an aggregate assessment of comparative efficiency.
Methods For the study, I used the methods of systems analysis, mathematical, economic, and statistical analyses, decomposition, and aggregation. The factual basis of the study is the Federal Treasury's data on the consolidated budgets of the constituent entities of the Russian Federation and the budgets of the territorial public non-budgetary funds in 2015, and the Rosstat operative statistical records on organizations that carry out educational activities in preschool education programs and childcare for 2015.
Results The article presents aggregate estimates of the comparative efficiency of the implementation of consolidated budgets in preschool education. As well, the article presents a rating of the RF entities, depending on the effectiveness of their implementation of the consolidated budget in the area of preschool education.
Conclusions Most regions (94 percent) have a very low relative effectiveness of their budget performance with respect to best practices. The best practice (absolutely effective) of budget execution at the time of the study was observed in the Chukotka Autonomous Okrug.

Keywords: pre-primary education, consolidated budget, comparative economic efficiency, DEA analysis


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