This study investigates the efficiency of Area Agencies on Aging using Data Envelopment Analysis (DEA). Efficiency was calculated based on resources available and service units produced. Results demonstrated that extent of inefficiency in agencies and how efficiency of individual Area Agencies on Aging can be improved relative to their peer agencies. Analyses by organizational type, size, and rural-urban differences indicated governmental agencies and large agencies were more likely to be efficient. Rural agencies were about equally likely to be efficient as inefficient.
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Özcan et al. (1994) studied this question.