Metafrontier Functions for the Study of Inter-regional Productivity Differences

The paper uses the concept of metafrontier functions to study regional differences in production technologies. The paper has three components. The first deals with the analytical framework necessary for the definition of metafrontier functions. The second component studies the properties of the metafrontier estimated using nonparametric data envelopment analysis (DEA). The third component focuses on the estimation of metafrontiers within the parametric framework of stochastic frontier analysis (SFA). The empirical application of the models uses cross-country agricultural sector data. The DEA and SFA metafrontiers are presented and discussed.

Accounting for environmental factors, bias and negative numbers in efficiency estimation: A bootstrapping application to the Hong Kong banking sector

This paper examines the evolution of Hong Kong’s banking industry’s technical efficiency, and its macroeconomic determinants, during the period 2000-2006 through the prism of two alternative approaches to efficiency estimation, namely the intermediation and production approaches. Using a modified (Sharp, Meng and Liu, 2006) slacks-based model (Tone, 2001), and purging the efficiency estimates for random errors (Simar and Zelenyuk, 2007) , we firstly analyse the trends in bank efficiency. We then identify the ‘environmental’ factors that significantly affect the efficiency scores using an adaptation (Kenjegalieva et al. 2009) of the truncated regression approach suggested by Simar and Wilson. 2007). The first part of the analysis reveals that the Hong Kong banking industry suffered a severe downturn in estimated technical efficiency during 2001. It subsequently recovered, posting average efficiency scores of 92 per cent and 85 percent under the intermediation and production approaches respectively by the end of 2006. As for the sub-group analysis, commercial banks are, on average, shown to be the most efficient operators, while the investment bank group are shown to be the least efficient. Finally, with respect to the truncated regression analysis, the results suggest that smaller banks are more efficient than their larger counterparts, although larger banks are still able to enjoy gains from scale economies and benefit from the export of financial services. Moreover, private housing rent and the net export of goods and services are found to be negatively correlated with bank efficiency, while private consumption is shown to be positively correlated.Hong Kong Banks; DEA; Slacks; Environmental factors, Negative numbers; Bias.

A Comparative Study on the Productivity Of Chinese Seaport Cities

본 논문에서는 자료포괄분석방법(data envelopment analysis: DEA)을 사용하여 1997년부터 2007년 사이의 기간에 대하여 중국의 10대 항만도시들의 효율성을 측정하고 맘퀴스트 생산성지수를 측정하였다. 항만도시들의 효율성과 효율성의 등위는 규모에 대한 수익불변(CRS)과 규모에 대한 수익 가변(VRS)의 가정하에서 측정되었다. 주요한 연구결과는 다음과 같다. 첫째, 舟山은 가장 효율적인 항만도시로 나타났고 지난 9년 동안 CRS와 VRS의 가정하에서 1위를 유지하였다. 둘째, 深&#22323島) 꾸준한 추세를 보여 주었다. 넷째, 맘퀴스트 지수결과에서는 대체적으로 10개의 항만도시들이 총요소생산성의 증가를 보여 주었는데 연평균 4.3%정도로 나타났다. 기술변화는 총생산성증가에서 중요한 역할을 하고 있음을 확인하였고 특히 투자의 지연효과를 고려한 모형에서 그 효과가 크게 나타났다. 다섯째, 중규모 및 대규모 항만과 비교하여 소규모 항만의 규모효율성은 가장 낮게 나타났으나 증가속도는 가장 빠르게 나타났다. 여섯째, 인구와 도시의 개방도는 항만의 도시생산성에 양의 효과를 보여주었고 항만의 화물취급능력은 음의 효과를 보여 주었다. 미래의 연구에서는 더 많은 자료와 더 나은 자료를 활용하여 중국 항만도시들의 효율성의 특징들을 이해하는데 더 나은 연구결과가 지속적으로 도출될 수 있을 것으로 기대된다.은 신흥개방항만으로서 가장 뚜렷하고 의미있는 효율성의 개선을 나타내었다. 한편 大連은 오래된 항구로서 가장 빠른 상대적 효율성의 하락을 보여주었다. 셋째, 5대 항만도시는(上海, 寧波, 天津, 廣州, &#387381.&nbspMalmquist productivity of Xiamen 75 5.3.10 Malmquist productivity of Fuzhou 77 5.4 Compare the productivity change by the mamlquist index value of the ten seaport cities (1999-2000) 79 5.5 Compare of the scale efficiency of large-sized, middle-sized and small-sized seaport cities 80 5.6 Determinants of efficiency of seaport cities 86 6. Summary, Limitations and Conclusions 94 6.1 Summary 94 6.2 Limitations 95 6.4 Conclusions 96 7 Reference 98Malmquist productivity of Zhoushan 73 5.3.9&nbspMalmquist productivity of Shenzhen 71 5.3.8&nbspMalmquist productivity of Dalian 69 5.3.7&nbspMalmquist productivity of Qingdao 67 5.3.6&nbspMalmquist productivity of Guangzhou 65 5.3.5&nbspResults about the productivity of the seaport cities by using the malmquist index 58 5.3.1 Malmquist productivity of Shanghai 58 5.3.2 Malmquist productivity of Ningbo 60 5.3.3 Malmquist productivity of Tianjin 63 5.3.4&nbspResult of scale economic and returns to scale of Zhoushan 52 5.2.9 Result of scale economic and returns to scale of Xiamen 55 5.2.10 Result of scale economic and returns to scale of Fuzhou 55 5.3 &nbspResult of scale economic and returns to scale of Shenzhen 52 5.2.8&nbspResult of scale economic and returns to scale of Dalian 49 5.2.7&nbspResult of scale economic and returns to scale of Qingdao 49 5.2.6&nbspResult of scale economic and returns to scale of Ningbo 44 5.2.3 Result of scale economic and returns to scale of Tianjin 44 5.2.4 Result of scale economic and returns to scale of Guangzhou 47 5.2.5&nbspMethodology 9 3.1 Data envelopment Analysis 9 3.2 The constant returns to scale model 10 3.3 The variable returns to scale model 15 3.4 Input orientated and output orientated measures 15 3.4.1 Input orientated measures 16 3.4.2 Output orientated measures 18 3.5 Scale efficiencies 23 3.6 The malmquist index 25 4. The data 29 4.1 Sources of the raw data 29 4.2 The price index of 1999-2007 34 4.3 The handling capacity of seaport cities 34 5. The result of Measurement 36 5.1 Result of the productivity efficiency of seaport cities 36 5.2 Result about scale economic (SE) and returns to scale (RS) 42 5.2.1 Result of scale economic and returns to scale of Shanghai 42 5.2.2&nbspIntroduction 1 1.1 Purpose 1 1.2 Population of Interest 2 1.3 Selection of Seaport Cities 2 1.4 Structure 4 2. Literature Review 5 2.1 Data Envelopment Analysis Models 5 2.2 Previous Studies 5 3.&nbsp&nbs

Performance Measurement in the Australian Water Supply Industry

Various government-owned businesses provide water supply services to Australian residents. With the advent of recent competition and regulatory reforms in infrastructure industries in Australia, more and more of these businesses are now facing new types of incentive-based regulatory regimes. This has led to a desire for more information on the performance of these businesses, both relative to each other and over time. In this study we use panel data on the 18 largest Australian water services businesses, observed over an eight-year period from 1995/6 to 2002/3, to measure the relative efficiency and productivity growth of these businesses. Data envelopment analysis (DEA) methods are used to obtain estimates of the multi-input, multi-output production technology. The potential use of these performance measures in price-cap regulation is discussed, where the effects of variable selection and data quality upon empirical results is emphasised.

Data Envelopment Analysis, Endogeneity and the Quality Frontier for Public Services

Applying Data Envelopment Analysis (DEA) to real-world public policy issues can raise many interesting complications beyond those considered in standard models of DEA. One of these complications arises if the funding levels of public service providers, and their ability to attract and retain clients and able staff, depend upon the quality of the output which they produce. This dependency introduces additional inter-relationships between inputs and outputs beyond the uni-directional Production Possibility Frontier (PPF) relationship considered by standard DEA models. The paper therefore analyses the multiplier effects which can be generated by these additional relationships, in which key resource inputs become endogenous variables subject to the external environmental variables which the public service provider faces across these different relationships. The magnitude of these multiplier effects can be captured by focusing DEA on the estimation of an Achievement Possibility Frontier, which reveals the wider set of opportunities which are available to a public service provider to improve its own output quality than that revealed by the estimation of the PPF associated with standard models of DEA. In doing so, the paper enables DEA to be still applied, but in modified form, to the estimation of the scope for improved output of any given public service provider in the presence of such resource endogeneity

Metafrontier Functions for the Study of Inter-Regional Productivity Differences

The paper uses the concept of metafrontier functions to study regional differences in production technologies. The paper has three components. The first deals with the analytical framework necessary for the definition of metafrontier functions. The second component studies the properties of the metafrontier estimated using nonparametric data envelopment analysis (DEA). The third component focuses on the estimation of metafrontiers within the parametric framework of stochastic frontier analysis (SFA). The empirical application of the models uses cross-country agricultural sector data. The DEA and SFA metafrontiers are presented and discussed

An Investigation into Factors Affecting the Chilled Food Industry

With the advent of Industry 4.0, many new approaches towards process monitoring, benchmarking and traceability are becoming available, and these techniques have the potential to radically transform the agri-food sector. In particular, the chilled food supply chain (CFSC) contains a number of unique challenges by virtue of it being thought of as a temperature controlled supply chain. Therefore, once the key issues affecting the CFSC have been identified, algorithms can be proposed, which would allow realistic thresholds to be established for managing these problems on the micro, meso and macro scales. Hence, a study is required into factors affecting the CFSC within the scope of Industry 4.0. The study itself has been broken down into four main topics: identifying the key issues within the CFSC; implementing a philosophy of continuous improvement within the CFSC; identifying uncertainty within the CFSC; improving and measuring the performance of the supply chain. However, as a consequence of this study two further topics were added: a discussion of some of the issues surrounding information sharing between retailers and suppliers; some of the wider issues affecting food losses and wastage (FLW) on the micro, meso and macro scales. A hybrid algorithm is developed, which incorporates the analytic hierarchical process (AHP) for qualitative issues and data envelopment analysis (DEA) for quantitative issues. The hybrid algorithm itself is a development of the internal auditing algorithm proposed by Sueyoshi et al (2009), which in turn was developed following corporate scandals such as Tyco, Enron, and WorldCom, which have led to a decline in public trust. However, the advantage of the proposed solution is that all of the key issues within the CFSC identified can be managed from a single computer terminal, whilst the risk of food contamination such as the 2013 horsemeat scandal can be avoided via improved traceability

DEA target setting using lexicographic and endogenous directional distance function approaches

Belarmino Adenso Díaz Fernández es el investigador principal del proyecto "Análisis y diseño de redes logísticas eficientes, robustas y sostenibles

Efficiency and Productivity in the Spanish Food Distribution Sector

This study investigated the efficiency and productivity change of a sample of food distribution units (MERCAs) in Spain over the 1.997-1.999 period, applying non-parametric frontier methodology in a sales efficiency framework. We specified a mean sales model composed of two blocks of variables, the production block, and the marketing management block. Then we applied output oriented DEA methodology to perform the efficiency analysis, also taking into account the overall efficiency decomposition into pure and scale efficiency. The Malmquist index was calculated in order to analyse the components of the productivity change. The mean pure sales efficiency index was high, around 0.8, the mean scale index being 0,9. As appears from the results, six food distribution units were efficient, but some of the wholesale markets need to adapt their sales technology in order that their input bundle reaches a Most Productive Scale Size unit. We found no evidence of technical change during the period considered, but concluded that a notable scale efficiency change took place during the studied period. To summarise, we conclude that improvement in sales efficiency could be reached in the studied sector in both the pure and the scale efficiency.Efficiency, Productivity, DEA method, Malmquist index, Food Distribution Unit, Productivity Analysis,

DEA Problems under Geometrical or Probability Uncertainties of Sample Data

This paper discusses the theoretical and practical aspects of new methods for solving DEA problems under real-life geometrical uncertainty and probability uncertainty of sample data. The proposed minimax approach to solve problems with geometrical uncertainty of sample data involves an implementation of linear programming or minimax optimization, whereas the problems with probability uncertainty of sample data are solved through implementing of econometric and new stochastic optimization methods, using the stochastic frontier functions estimation.DEA, Sample data uncertainty, Linear programming, Minimax optimization, Stochastic optimization, Stochastic frontier functions