The relative technical efficiency of the Mexican federal entities

Abstract

The interregional relative technical (in)efficiency (etr) of the different states of the Mexican Republic is based on the optimal allocation of scarce public and private resources. The commitment of the authorities, the population and the productive sectors must tend to achieve a process of optimal allocation of available resources in an efficient manner.
The methodology of enveloped data analysis (ade), which is good because it can use multiple input and output variables to estimate an empirical production function (epf) and the type of expected returns to scale, helps to evaluate and measure the etr of a homogeneous set of decision making units (dtu). It is a nonparametric and deterministic mathematical programming technique that places the evaluated ud as more efficient on an empirical efficiency frontier. The degree of inefficiency of an ud depends on the distance that separates its position from the efficiency frontier; the ade contributes to the choice of decisions of the ud that are part of a homogeneous productive set in the management of their corresponding inputs and outputs.