Efficiency of LEADER Programmes in the creation of tangible and intangible outputs: a Data Envelopment Analysis application to Local Action Groups performances

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.