Efficiency of Public Hall Management: An Application of Data Envelopment Analysis

Abstract

Recently local governments face financial difficulties and local public halls (theatrical venues) are required to be effective in their activities. To meet this requirement, the objective and quantitative evaluation for efficient management is needed. However, it is difficult as the halls have various functions; supply of opportunity for appreciations of arts, providing space for art activities, popularization of arts, etc. This study analyzed the overall efficiency of public halls by applying Data Envelopment Analysis (DEA) which can determine relative efficiency of units characterized by multiple inputs and outputs. By using the CCR efficiency value and Malmquist index on several models, it can be concluded that DEA provides useful information to improve management of each hall featuring different functions, but it should be noted that the appropriate choice of variables and deliberate interpretation of the results are required.