Using a Modified Dynamic Network Data Envelopment Analysis Model to Assess Quality of Life in Taiwanese Regions

This study develops a modified dynamic data envelopment analysis (DEA) model to assess quality of life (QoL) and offers three main contributions to the field and relevant methodology. First, the model structures various dimensions as an interconnected network, and it can be used to measure dimensional indicators and overall indicators for QoL analysis. Second, the modified dynamic DEA model can be used to measure intertemporal indicators, and it includes taxation as the carry-over factor for the assessment of QoL. Third, this study proposes a methodological modification: to incorporate the assumption of undesirable final output into the dynamic DEA. For the empirical evaluation, 21 regions across Taiwan are used as observations to measure QoL at the local level. Empirical results evaluated from the modified model provide several practical insights for QoL assessment in Taiwan.