Anchor points in DEA

Abstract. Anchor points play an important role in DEA theory and application. They define the transition from the efficient frontier to the "free-disposability" portion of the boundary. Our objective is to use the geometrical properties of anchor points to design and test an algorithm for their identification. We focus on the variable returns to scale production possibility set; our results do not depend on any particular DEA LP formulation, primal/dual form or orientation. Tests on real and synthetic data lead to unexpected insights into their role in the geometry of the DEA production possibility set

Characterization of the transverse relaxation rates in lipid bilayers

The 2H NMR transverse relaxation rates of a deuterated phospholipid bilayer reflect slow motions in the bilayer membrane. A study of dimyristoyl lecithin specifically deuterated at several positions of the hydrocarbon chains indicates that these motions are cooperative and are confined to the hydrocarbon chains of the lipid bilayer. However, lipid head group interactions do play an important role in modulating the properties of the cooperative fluctuations of the hydrocarbon chains (director fluctuations), as evidenced by the effects of various lipid additives on the 2H NMR transverse relaxation rates of the dimyristoyl lecithin bilayer

Classical field theory on Lie algebroids: Variational aspects

The variational formalism for classical field theories is extended to the setting of Lie algebroids. Given a Lagrangian function we study the problem of finding critical points of the action functional when we restrict the fields to be morphisms of Lie algebroids. In addition to the standard case, our formalism includes as particular examples the case of systems with symmetry (covariant Euler-Poincare and Lagrange Poincare cases), Sigma models or Chern-Simons theories.Comment: Talk deliverd at the 9th International Conference on Differential Geometry and its Applications, Prague, September 2004. References adde

Effect of mergerson efficiency and productivity: Some evidence for banks in Malaysia

This study is undertaken to investigate the extent to which mergers lead to efficiency by which services are provided to the public and the productivity of Malaysia’s banking institutions sector. The data cover the period 1993 to 2004, which includes the pre-merger years and the post-merger years. This study attempts to evaluate technical efficiency, efficiency change, technical change and productivity of commercial banks, finance companies and merchant banks using a non-parametric Data Envelopment Analysis (DEA) and Malmquist Index approach as the framework for the analyses. It is found that: (1) that on average, productivity across banking institutions increased at annual rate of 5.8% over the study period 1993 to 2004; (2) the results also indicated that almost all of the productivity growth comes from technical change (or innovations in banking technology) rather than improvement in efficiency change, which contributes for 6.1% of productivity growth, while the latter accounted for 0.2% decline; (3) the merger process led to productivity improvements whereby, it is observed that the productivity of Malaysia’s banking sector has been improved (in terms of efficiency) after the implementation of merger program for domestic banking institutions in 1999. This might be due to the utilization of their scale economies to improve their efficiencies. However, the productivity of banking institutions has been affected by certain economic conditions in year 2001 and 2004 (such as the September 11 tragedy and the process of capital rationalization that merged entities have undergone).Banking sector, Mergers, DEA and Malmquist index,Malaysia

How performant are European governments in their housing policies?

Governments use a variety of instruments to pursue their housing policies. A clear picture on which policies are best suited to attain the objectives of housing policy is still lacking though. This paper addresses this question by empirically approaching government intervention in the housing sector from the viewpoints of effectiveness and efficiency. Effectivity in housing policy is regarded as affordable housing at reasonable quality made available to all. Efficiency is restricted in this paper to productive efficiency, meaning that administration and production costs are possibly too high given the ouput. Applying the methodologies of the Full Disposable Hull and Data Envelopment Analysis allows us to point out the countries with the most efficient housing policy. By focusing on the particular mix of instruments these countries are using we can then draw policy conclusions

The Eficiency Effects of Bank Mergers and Acquisitions in a Developing Economy: Evidence from Malaysia

This paper utilises the non-parametric frontier approach, Data Envelopment Analysis (DEA), to analyse the technical and scale efficiency of domestic incorporated Malaysian commercial banks during the merger year, pre-and post merger period. We found that Malaysian banks have exhibit a commendable overall efficiency level of 95.9% during 1998-2003 hence suggesting minimal input waste of 4.1%. Our results suggest that the merger programme was successful, particularly for the small and medium size banks, which have benefited the most from the merger and expansion via economies of scale. On the other hand our results suggest that the larger banks should shrink to benefit from scale advantages. Decision-makers hence ought to be more cautious in promoting mergers as a means to enjoying efficiency gains.Finance and Banking, Mergers, Efficiency Change, Data Envelopment Analysis; Malaysia

The Estimation of Stochastic Cost Functions of Malaysian Commercial Banks and Its Policy Implications to Bank Restructuring

The present paper examines stochastic cost functions of Malaysian commercial banks from 1991 to 1997 periods and catches the changes in their management structure and technical efficiency. Then, we also discuss policy implications for bank integration and competition policy which is the part of current financial reform that reinforces the banking sector. However, little microeconomic analysis of the Malaysian banking business has been conducted. The only known serious academic research in this area is by (Katib and Mathews, 2000). The present paper contributes to the expansion of their study in two respects. Firstly, we have estimated the cost function, availing ourselves of SEA based on a parametric approach. Secondly, our model also includes as a factor the existence of bad debts. According to our results, we observed economies of scale clearly, but economies of scope and technological progress were not observed. Regarding the policy implication, the result of our analysis suggests strongly that the current policy is appropriate.Economies of scale, Economies of scope, Technical efficiency, Cost function, Banking, Malaysia, Financial liberalization