Efficiency of LEADER Programmes in the creation of tangible and intangible outputs: a Data Envelopment Analysis application to Local Action Groups performances
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An emerging requirement for the evaluation of the rural development policy is the adoption of
an objective method accounting for both material and immaterial achievements, and measuring
the performance in order to understand the degree of accomplishment of policy objectives. In
this paper we propose a Data Envelopment Analysis (DEA) approach capable of dealing with
economic and social indicators, to measure the (relative) technical efficiency of a set of Local
Action Groups (LAGs) operating within the LEADER programme. An evaluation exercise
referred to eight LAGs located in Italy, is provided to demonstrate the effects of the inclusion of
social capital indicator in the evaluation of the LAGs’ performances. In particular, the DEA
allows to measure the relative efficiency of the LAGs and to identify the causes of the
inefficiency. The outcomes of the analysis may represent a valuable information support for
periodical policy review and for the enhancement of best practices.