Efficiency and Fiscal Performance of Indian States: An Empirical Analysis Using Network DEA

Abstract

The purpose of this empirical study is to evaluate and explain the fiscal performance of Indian states from 2009-10 to 2014-15 using a network DEA approach. While previous research has compared India's fiscal and developmental performance at the sub-national level, this study departs from the extant literature by evaluating state-wise performance at a disaggregated level. The states are first compared based on their tax mobilization and then evaluated in terms of development spending and overall financial performance. Censored regression analysis is also used to explore the impact of outstanding liabilities on GDP ratio, Gross Capital Formation, and GDP growth rate. The results indicate a positive association between efficiency scores and GDP growth rate and log of Gross Capital Formation. However, the linkage between efficiency and the outstanding liabilities ratio is negative. These findings suggest the need for a balanced approach to government spending to avoid the recurrence of the debt crisis in the future.

Study on the Spatiotemporal Evolution of Urban Land Use Efficiency in the Beijing–Tianjin–Hebei Region

“…In the global context, various methods for assessing ULUE have been developed, including the Construction of Indicator System [28], Stochastic Frontier Analysis (SFA) [29], Data Envelopment Analysis (DEA) [19,[30][31][32], Slacks-Based Measure (SBM) model [26,33,34], Super Epsilon-Based Measure (Super-EBM) Model [19], DID model, and Random Forest Algorithm [35]. Among these, DEA stands out as a non-parametric approach capable of evaluating multiple outputs and inputs simultaneously, gaining widespread recognition in academia for its ability to mitigate the impact of subjective bias in weight assignments, thus enhancing the precision of ULUE assessments [36,37]. However, as DEA analyzes technical efficiency through relative comparisons between units, the efficiency scores it generates represent relative rather than absolute efficiency.…”

Inverse Data Envelopment Analysis Model to Improve Efficiency by Increasing Outputs

“…Moreover, in recent years, various scholars have proposed several approaches to DEA models. For more details see [33][34][35][36][37][38][39][40][41].…”

Environmental Dimension of Corporate Social Responsibility and Earnings Persistence: An Exploration of the Moderator Roles of Operating Efficiency and Financing Cost

“…Such firms seek to avert incidents with negative impacts, disclose information, and hold themselves accountable to neutralize any negative consequences [10]. Firms that operate more transparently regarding the operations that are associated with the community and environment are found to be more financially stable and to suffer fewer fluctuations [11]. Moreover, the quality of earnings in these firms is more desirable than that of others [12].…”