Improvement of Private Pension System in Turkey and Measurement of Its Efficiency with DEA

Ahmet Kurtaran, Aykut Karakaya, Hüseyin Dagli

Abstract


The aim of this study is to analyze improvement of private pension system in Turkey in numerical quantities according to years and measure efficiency of system. Data envelopment analysis (DEA) was used as measurement method in the study. Inputs of DEA model are the number of employees and total assets. Total quantity of total premiums and funds is the output of model. The study is original since it differentiates pension companies as large-small scaled and domestic-foreign ones and enables more detailed analysis about efficiency. When analysis results are considered, it was observed that efficiency level in system had normal course with slight changes in the last 6 years. It was also concluded that large-scaled company group had lower efficiency than small-scaled company group and domestic companies had lower efficiency than foreign companies. The main reason of inefficiency was their inability to operate in optimal scale due to financial crisis.

 


Full Text: PDF DOI: 10.5539/ijef.v5n11p163

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This work is licensed under a Creative Commons Attribution 3.0 License.

International Journal of Economics and Finance  ISSN  1916-971X (Print) ISSN  1916-9728 (Online)

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