Infrastructure performance and reform in developing and transition economies: evidence from a survey of productivity measures

The authors review about 80 studies on electricity and gas, water and sanitation, and rail and ports (with a footnote on telecommunications) in developing countries. The main policy lesson is that there is a difference in the relevance of ownership for efficiency between utilities and transport in developing countries. In transport, private operators have tended to perform better than public operators. For utilities, ownership often does not matter as much as sometimes argued. Most cross-country studies find no statistically significant difference in efficiency scores between public and private providers. As for the country-specific studies, some do find differences in performance over time but these differences tend to matter much less than a large number of other variables. Across sectors, private operators functioning in a competitive environment or regulated under price caps or hybrid regulatory regimes tend to catch up best practice faster than public operators. There is a very strong case to push regulators in developing and transition economies toward a more systematic reliance on yardstick competition in a sector in which residual monopoly powers tend to be common.Enterprise Development&Reform,Labor Policies,Banks&Banking Reform,Environmental Economics&Policies,Economic Theory&Research,Environmental Economics&Policies,Economic Theory&Research,Banks&Banking Reform,Health Monitoring&Evaluation,Health Economics&Finance

Efficiency in rail systems through three different approaches and contributions to push the Brazilian rail system toward high performance

Tese (Doutorado em Administração) - Universidade Federal do Rio de Janeiro, Rio de Janeiro, 2019Inclui bibliografiaThis research investigates the efficiency of the Brazilian rail cargo system (SFBC, acronym in Portuguese). The importance of the performance of a rail system to the logistics of goods in countries with large territorial dimensions is recognized. However, its role is secondary in Brazil compared to road transport, representing high economic and environmental costs. SFBC is dedicated to the export of mineral and agricultural bulk where it has a significant capacity for insertion. Meanwhile, the SFBC has an insignificant participation in the internal distribution of goods, which is mostly done in highways, including on longer routes. Consequently, the transport sector in Brazil emits twice as much CO2 from buming fuels than the world average. SFBC presents characteristics of a medium performance scenario. The performance of the operators is heterogeneous, benchmarking is an outlier, the average efficiency is low, and the average idleness of the sections is high. To discuss the conditions to achieve a high performance scenario is the main contribution of this thesis. Three researches were done to address this issue. The first one is dedicated to estimate the efficiency of the railway concessionaires in Brazil between 2010-2014 by using Data Envelopment Analysis. In a second stage, the significance of selected variables was assessed through Bootstrap Truncated Regression, including the type of the use of the railway track (shared or monopoly), a gap in the literature. The operators were grouped according to the efficiency scores and the type of returns to scale, and measures to increase the efficiency of the clusters were discussed. The second research has the purpose to explain the heterogeneity found in the average efficiency of the different railway systems in the world, the object of researches done between 2000-2016, through a meta-analysis carried out for the first time onj railways. For greater robustness, Leave-One-Out-Cross-Validation and VVeighted Regression were applied. Public policies induding diversification of services and models for assessing efficiency by regulatory agencies were discussed. The third research is devoted to the efficiency of the SFBC raílway sections and identifies the significant conditions for high and low performance scenarios by combining the Technique for Order of Preference by Similarity to Ideal Solution and a differential evolution algorithm for estimating the weights of variables in optimized scenarios, another gap in the literature. In a second stage, the significance of the variables selected was evaluated. The research shows that the public manager should push the rail companies toward the transportation of any type of cargo, the diversification of services, the centralized control of the operation, and the sharing of the railway track. The competition and diversifìcation are significant for high performance.A pesquisa investiga a eficiência do Sistema Ferroviário Brasileiro de Cargas (SFBC). É reconhecida a importância do desempenho de um sistema ferroviário para a logística de mercadorias em países de grandes dimensões territoriais. Todavia, seu papel é secundário no Brasil frente ao transporte rodoviário, representando custos econômicos e ambientais excedentes. O SFBC se mantém dedicado à exportação de granéis sólidos minerais e agrícolas onde apresenta significativa capacidade de inserção, enquanto é inexpressiva sua participação na distribuição interna de bens, majoritariamente realizada pelo setor rodoviário, inclusive em rotas mais longas. Assim, o setor de transporte no Brasil emite o dobro de CO2 pela queima de combustíveis do que a média mundial. O SFBC apresenta características de um cenário de média performance. O desempenho dos operadores é heterogêneo, o benchmarking é um outlier, a eficiência média é baixa e a ociosidade média das seções é alta. Discutir as condições para alcançar um cenário de alta performance é a principal contribuição da tese. Para atingir esse objetivo, foram realizadas três pesquisas. A primeira se dedica à eficiência dos concessionários ferroviários no Brasil no período 2010-2014, com o uso de Data Envelopment Analysis. Num segundo estágio, através de Bootstrap Truncated Regression, foi avaliada a significância de variáveis selecionadas, incluindo o tipo de uso da via, gap da literatura. Os operadores foram agrupados segundo os resultados de eficiência e o tipo de retornos de escala das operações e medidas para o aumento da eficiência dos clusters foram discutidas. A segunda pesquisa tem por objetivo explicar a heterogeneidade encontrada na eficiência média de diversos sistemas ferroviários no mundo, objeto de pesquisas realizadas entre 2000-2016, através de uma metanálise conduzida pela primeira vez em ferrovias. Para maior robutez, Leave-One-Out-Cross-Validation e Weighted Regression foram utilizadas. Políticas públicas incluindo diversificação e modelos de avaliação de eficiência por órgãos reguladores foram comentadas. A terceira pesquisa se dedica à eficiência das seções ferroviárias e identifica as condições significativas para cenários de alta e baixa performance através da combinação de Technique for Order of Preference by Similarity to Ideal Solution e de um algoritmo de evolução diferencial para estimar os pesos de variáveis em cenários otimizados, gap da literatura. Num segundo estágio, a significância de variáveis selecionadas foi avaliada. A pesquisa mostra que o gestor público deve empurrar as empresas para o transporte de todo o tipo de carga, a diversificação de serviços, o controle centralizado da operação e o compartilhamento da via. A competição e a diversificação são significativas para a alta performance

Strategy Tripod Perspective on the Determinants of Airline Efficiency in A Global Context: An Application of DEA and Tobit Analysis

The airline industry is vital to contemporary civilization since it is a key player in the globalization process: linking regions, fostering global commerce, promoting tourism and aiding economic and social progress. However, there has been little study on the link between the operational environment and airline efficiency. Investigating the amalgamation of institutions, organisations and strategic decisions is critical to understanding how airlines operate efficiently. This research aims to employ the strategy tripod perspective to investigate the efficiency of a global airline sample using a non-parametric linear programming method (data envelopment analysis [DEA]). Using a Tobit regression, the bootstrapped DEA efficiency change scores are further regressed to determine the drivers of efficiency. The strategy tripod is employed to assess the impact of institutions, industry and resources on airline efficiency. Institutions are measured by global indices of destination attractiveness; industry, including competition, jet fuel and business model; and finally, resources, such as the number of full-time employees, alliances, ownership and connectivity. The first part of the study uses panel data from 35 major airlines, collected from their annual reports for the period 2011 to 2018, and country attractiveness indices from global indicators. The second part of the research involves a qualitative data collection approach and semi-structured interviews with experts in the field to evaluate the impact of COVID-19 on the first part’s significant findings. The main findings reveal that airlines operate at a highly competitive level regardless of their competition intensity or origin. Furthermore, the unpredictability of the environment complicates airline operations. The efficiency drivers of an airline are partially determined by its type of business model, its degree of cooperation and how fuel cost is managed. Trade openness has a negative influence on airline efficiency. COVID-19 has toppled the airline industry, forcing airlines to reconsider their business model and continuously increase cooperation. Human resources, sustainability and alternative fuel sources are critical to airline survival. Finally, this study provides some evidence for the practicality of the strategy tripod and hints at the need for a broader approach in the study of international strategies

Municipality Size and Efficiency of Local Public Services: Does Size Matter?

Similarly to western Germany in the 1960s and 1970s, the eastern part of Germany has experienced a still ongoing process of numerous amalgamations among counties, towns and municipalities since the mid-1990s. The evidence in the economic literature is mixed with regard to the claimed expenditure reductions and efficiency gains from municipal mergers. We therefore analyze the global efficiency of the municipalities in Saxony-Anhalt, for the first time in this context, using a double-bootstrap procedure combining DEA and truncated regression. This allows including environmental variables to control for exogenous determinants of municipal efficiency. Our focus thereby is on institutional and fiscal variables. Moreover, the scale efficiency is estimated to find out whether large units are necessary to benefit from scale economies. In contrast to previous studies, we chose the aggregate budget of municipal associations (“Verwaltungsgemeinschaften”) as the object of our analysis since important competences of the member municipalities are settled on a joint administrative level. Furthermore, we use a data set that has been carefully adjusted for bookkeeping items and transfers within the communal level. On the “eve” of a mayor municipal reform the majority of the municipalities were found to have an approximately scale-efficient size and centralized organizational forms (“Einheitsgemeinden”) showed no efficiency advantage over municipal associations.efficiency, local government, DEA, bootstrap, demographic change, local institutions

Efficiency of the rail sections in Brazilian railway system, using TOPSIS and a genetic algorithm to analyse optimized scenarios

A railway system plays a significant role in countries with large territorial dimensions. The Brazilian rail cargo system (BRCS), however, is focused on solid bulk for export. This paper investigates the extreme performances of BRCS through a new hybrid model that combines TOPSIS with a genetic algorithm for estimating the weights in optimized scenarios. In a second stage, the significance of selected variables was assessed. The transport of any type of cargo, a centralized control of the operation, and sharing the railway track pushing competition, and the diversification of services are significant for high performance. Public strategies are discussed.Indisponível

Transport Systems: Safety Modeling, Visions and Strategies

This reprint includes papers describing the synthesis of current theory and practice of planning, design, operation, and safety of modern transport, with special focus on future visions and strategies of transport sustainability, which will be of interest to scientists dealing with transport problems and generally involved in traffic engineering as well as design, traffic networks, and maintenance engineers

A nonparametric approach to productive efficiency measurement : an application of bootstrap DEA to gold mining

In this dissertation the technical efficiency in gold mining is investigated. To the best available knowledge, this is the first such study on gold mining, whether on a localised (one country) or for a cross-section of countries. Since the work by Farrell (1957), much work has been done using nonparametric methods such as DEA. Although extensions in DEA technique, such as bootstrapping have been available for some time, their use has been limited in comparison with the number of overall DEA studies carried out. In this dissertation both DEA and bootstrap DEA are applied to two gold mining cross sectional samples, one on Zimbabwe consisting of thirty-four mines, and the an international one which also included some Zimbabwean mines which comprise fifty-nine observations.The main reason for carrying out the study is an interest in gold mining in general and its importance to Zimbabwe in particular. As will be noted in Chapter 2, the economic development of Zimbabwe has been linked, to a varying extent over the ages, to its growth of the gold mining sector.The results of the dissertation provide some useful insights into the relative performances of gold mines and also some characteristics of the Zimbabwean gold mining sector. The main results indicate that gold mining is characterised mainly by technical efficiency dominating scale efficiency. This is particular relevant when the Zimbabwean mines are compared with their international counterparts. Zimbabwean mines are found to be relatively technically efficient but less so when overall efficiency is considered. In fact they have the lowest overall efficiency scores in the international sample. The results also indicate that mines from the so-called developed mining economies, Australia, Canada, the US and South Africa are the benchmarks in terms of optimal operations. It is mines from these countries which define the overall efficiency frontier.The results of both the samples highlight potential shortcomings in applying DEA and bootstrap extension to gold mining, both for single country and for cross-country cases. Additionally, there are possibilities, with adequate data, of relating country-specific characteristics to differences in overall efficiency among countries.Finally there are indications that including mineralogical factors such as the recovery rate in the production technology has an effect on technical efficiency. Mines with low recovery rates tend to exhibit comparatively higher technical efficiency. The study does have some limitations, mainly because of lack of data. In particular, there were problems in coming with attributing the contribution of capital services to efficiency with the result that a different measure for the flow of capital services is used for each sample. In addition, the two samples are for different time periods. This limits comparative analysis

How efficient are Kenyan hospitals? : an application of frontier analysis techniques

Efficiency is an important concern for health systems. This includes delivery of the health care, health financing, and investment on hospital facilities and the management of health facilities. Measurement of efficiency in health facilities is important to ensure maximum allocation and utilization of limited resources. The aim of this study was to estimate efficiency in level IV Kenyan hospitals using data envelopment analysis and stochastic frontier analysis. Panel data were collected from 27 public and faith-based hospitals between 2008 and 2012. Data envelopment analysis (DEA), a non-parametric approach and stochastic frontier analysis (SF A) a parametric approach were applied to the data. Ownership as a factor of efficiency was assessed from the collected samples. The results show evidence of technical inefficiencies across the hospitals. Based on DEA bootstrapped model, the efficiency scores was 0.7597 and 0.7751 for 2011 and 2012 data respectively. Using the cross sectional data set, SFA values were comparable to DEA with an average of 0.7919 and 0.7701 for the 2011 and 2012 data sets respectively. Based on the panel data, the SF A model gave a range of scores that were between 0.62 (Pitt and Lee and Battese and Coelli) and 0.85 (true effect models). There was no evidence of patterns in efficiency scores over time based on both DEA and SF A approaches. This data did not suggest a significant effect on efficiency based on hospital ownership. In conclusion, this study shows presence of technical inefficiencies in Kenyan hospitals. It also provides a platform in exploring further the frontier techniques and incorporating ownership when measuring efficiency in Kenyan hospitals

Environmental and Energy Efficiency Evaluation Based on Data Envelopment Analysis (DEA)

Efficiency and productivity assessment are essential to ensure the long-term financial sustainability of countries, services and processes. In the last few years, there has been an increasing interest in the environmental effects of economic activities, and the need to assess the environmental and energy efficiency has been internationally recognized. Energy and environmental efficiency assessments of decision-making units (DMUs), such as countries, utilities, processes and services are relevant and have strong implications for companies, regulators, stakeholders, policy makers, and customers. To improve both the decision-making process and the management of DMUs, fundamental and practical knowledge about energy and environmental efficiency and productivity is essentia