Goal programming and data envelopment analysis for target-based multi-level planning: Allocating central grants to the Greek local authorities

In this paper we develop an interface between goal programming and data envelopment analysis in order to integrate target setting and resource allocation in multi-level planning problems. Data envelopment analysis (DEA) has been traditionally used for assessing the performance of individual decision making units and, therefore, necessary extensions are needed to apply DEA principles to the global organisational level without, however, losing its attractive features. The method was originally developed as an aid to the reorganisation of the allocation of central funds to local authorities in Greece.