Measuring the effect of virtual mergers on banks’ efficiency levels:A non parametric analysis

This study illustrates how the recent developments in efficiency analysis and statistical inference can be applied when evaluating banks’ performance issues from a potential merger. By using a sample of 29 Greek commercial banks the paper provides a six step procedure in order to evaluate whether a potential bank merger can exhibit economies of scale and characterized as favorable.Data Envelopment Analysis; Bootstrap techniques; Virtual Mergers; Bank efficiency.

Adjusting for cultural effects on countries’ education policy efficiency:an application of conditional full frontiers measures

In this paper using Data Envelopment Analysis (DEA) we evaluate the influence of national culture on education policy efficiency for 20 OECD countries. For that reason bootstrap techniques have been employed in order to produce biased corrected efficiency scores and confidence intervals are been calculated. By using probabilistic approaches it conditions the effect of national cultural values on the obtained countries’ educational efficiencies. The empirical results indicate that the efficiency of education policy is mainly influenced from differences of individualistic and masculinity values among the countries. However the results clearly indicate that education policy reforms must be based outside those national cultural bounds in order to support national economies on their foreseen challenges.Data Envelopment Analysis; Education; Linear programming; Statistics

Evaluation Of Performance Of Malaysian Banks In Risk Adjusted Return On Capital (Raroc) And Economic Value Added (Eva) Framework

As Malaysian banks step into Basel-III era, a close look at their performance on risk adjusted basis using RAROC and EVA would throw significant light on their relative strengths and weaknesses. Post restructuring during 1999–2000, the regulatory framework of Bank Negara Malaysia (BNM) throughout 2001–2010 was mainly centered on capitalisation, risk management and governance practices in banks. Financial Sector Blue Print is viewed as the reference framework for growth of banks in the current decade. Though numerous studies have evaluated the performances of Malaysian banks in terms of efficiency and productivity gains before and after the merger and also at various phases during the last decade, no study has so far been reported to evaluate their performances using the above framework. This paper intends to fill up this gap. The period covered is 2001 to 2013. Findings of this paper would be of keen interest to the policy planners, investors and researchers alike

Data Envelopment Analysis to measure relative performance based on key indicators from a supply network with reverse logistics

Introduction− Data Envelopment Analysis (DEA) is used to measure the relative performance of a series of distribution centers (DCs), using key indicators based on reverse logistics for a company that produces electric and electronic supplies in Colombia.Objective−The aim is to measure the relative perfor-mance of distribution centers based on Key Performance Indicators (KPI) from a supply network with reverse logistics.Methodology−A DEA model is applied through 5 steps: KPIs selection; Data collection for all 18 DCs in the net-work; Build and run the DEA model; Identify the DCs that will be the focus of improvement; Analyze the DCs that restrict or diminish the total performance of the system.Results− KPIs are defined, data is collected and KPI’s for each DCs are presented. The DEA model is run and the relative efficiencies for each DCs are determined. A frontier analysis is made and DCs that limit or reduce the performance of the system are analyzed to find options for improving the system.Conclusions−Reverse logistics, brings numerous ad-vantages for companies. The analysis of the indicators allows logistics managers involved to make relevant deci-sions for higher performance. The DEA model identifies which DCs have a relative superior and inferior perfor-mance, making it easier to make informed decisions to change, increase or decrease resources, and activities or apply best practices that optimize the performance of the network.Introducción− El análisis envolvente de datos (DEA), se usa para medir el desempeño relativo de una serie de centros de distribución (DCs), utilizando indicadores clave basados en logística inversa para una empresa que produce suministros eléctricos y electrónicos en Colombia.Objetivo− Medir el rendimiento relativo de los centros de distribución en función de indicadores clave (KPI) de una red de abastecimiento con logística inversa.Metodología− Se aplica un modelo DEA a través de 5 pasos: Selección de KPIs; Recopilación de datos para los 18 DCs en la red de distribución; Se construye y ejecuta el modelo DEA; Identificar los DCs que serán el foco de la mejora; Analizar los DCs que restringen o disminuyen el rendimiento total del sistema.Resultados− Inicialmente se definen KPI, a partir de los datos recolectados y se presentan los KPI para cada DCs. Se ejecuta el modelo DEA y se determinan las eficiencias relativas para cada DCs. Posteriormente, se realiza un análisis de la frontera y se analizan los DCs que limitan o reducen el rendimiento del sistema en busca de opciones para mejorar el sistema.Conclusiones− La logística inversa, trae numerosas ven-tajas para las empresas. El análisis de los indicadores permite a los gerentes de logística tomar decisiones rel-evantes para mejorar el desempeño del sistema. El mod-elo DEA identifica a los DCs que presentan rendimientos relativamente superiores e inferiores; lo cual facilita la toma de decisiones informadas para cambiar, aumentar o disminuir los recursos y las actividades, o aplicar las mejores prácticas que optimicen el rendimiento de la red

Adequacy of DEA as a regulatory tool in the water sector. The impact of data uncertainty

[EN] The regulation of water services shares many similarities with that of other utilities such as electricity or telecommunications. As a result, similar methods are often used by regulators to assess the efficiency of companies in those sectors. Data Envelopment Analysis (DEA) is one of those widely applied methods. This paper aims to determine the adequacy of DEA as a regulatory tool for urban water services, with a special focus on the quality of the available data. In order to obtain useful conclusions, two DEA simulations were performed with audited data from 194 water utilities, officially made available by the Portuguese water regulatory authority (ERSAR). Both simulations will demonstrate that the inherent inaccuracies found in some of the key data provided by water utilities represent a significant obstacle to obtain meaningful results with the DEA technique. This could represent a paradigm shift for some of the regulatory authorities currently using DEA or similar techniques, as the complexity of the method does not seem to be justified by a better analysis of the comparative performance of the different services.Cabrera Rochera, E.; Estruch-Juan, ME.; Molinos-Senante, M. (2018). Adequacy of DEA as a regulatory tool in the water sector. The impact of data uncertainty. Environmental Science & Policy. 85:155-162. https://doi.org/10.1016/j.envsci.2018.03.028S1551628

Resampling DEA estimates of investment fund performance

Data envelopment analysis (DEA) is attractive for comparing investment funds because it handles different characteristics of fund distribution and gives a way to rank funds. There is substantial literature applying DEA to funds, based on the time series of funds' returns. This article looks at the issue of uncertainty in the resulting DEA efficiency estimates, investigating consistency and bias. It uses the bootstrap to develop stochastic DEA models for funds, derive confidence intervals and develop techniques to compare and rank funds and represent the ranking. It investigates how to deal with autocorrelation in the time series and considers models that deal with correlation in the funds' returns. © 2012 Elsevier B.V. All rights reserved

Measuring the effect of virtual mergers on banks’ efficiency levels:A non parametric analysis

This study illustrates how the recent developments in efficiency analysis and statistical inference can be applied when evaluating banks’ performance issues from a potential merger. By using a sample of 29 Greek commercial banks the paper provides a six step procedure in order to evaluate whether a potential bank merger can exhibit economies of scale and characterized as favorable

Measuring the effect of virtual mergers on banks’ efficiency levels:A non parametric analysis

This study illustrates how the recent developments in efficiency analysis and statistical inference can be applied when evaluating banks’ performance issues from a potential merger. By using a sample of 29 Greek commercial banks the paper provides a six step procedure in order to evaluate whether a potential bank merger can exhibit economies of scale and characterized as favorable

How efficient are New Zealand's District Health Boards at producing life expectancy gains for Māori and Europeans?

As an open access journal, all articles in ANZJPH will be freely available to read, download and share immediately on publication[EN] Objective: Use data envelopment analysis (DEA) to measure the efficiency of New Zealand’s District Health Boards (DHBs) at achieving gains in Māori and European life expectancy (LE). Methods: Using life tables for 2006 and 2013, a two-output DEA model established the production possibility frontier for Māori and European LE gain. Confidence limits were generated from a 10,000 replicate Monte Carlo simulation. Results: Results support the use of LE change as an indicator of DHB efficiency. DHB mean income and education were related to initial LE but not to its rate of change. LE gains were unrelated to either the initial level of life expectancy or to the proportion of Māori in the population. DHB efficiency ranged from 79% to 100%. Efficiency was significantly correlated with DHB financial performance. Conclusion: Changes in LE did not depend on the social characteristics of the DHB. The statistically significant association between efficiency and financial performance supports its use as an indicator of managerial effectiveness. Implications for Public Health: Efficient health systems achieve better population health outcomes. DEA can be used to measure the relative efficiency of sub-national health authorities at achieving health gain and equity outcomes.Sandiford, P.; Vivas Consuelo, DJJ.; Rouse, P. (2017). How efficient are New Zealand's District Health Boards at producing life expectancy gains for Māori and Europeans?. Australian and New Zealand Journal of Public Health. 41(2):125-129. doi:10.1111/1753-6405.12618S12512941