Next Stop: Restructuring?: A Nonparametric Efficiency Analysis of German Public Transport Companies

In this paper, we present a nonparametric comparative efficiency analysis of 179 communal public transport bus companies in Germany (1990-2004). We apply both deterministic data envelopment analysis (DEA) and bootstrapping to test the robustness of our estimates and to test the hypothesis of global and individual constant returns to scale. We find that the average technical efficiency of German bus companies is relatively low. We observe that the industry appears to be characterized by increasing returns to scale for smaller companies. These results would imply increasing pressure on bus companies to restructure.Public transport, buses, efficiency analysis, nonparametric methods, DEA, bootstrapping

Comparing Efficiency Across Markets: An Extension and Critique of the Zhang and Bartels (1998) Methodology

The use of non-parametric frontier methods for the evaluation of product market efficiency in heterogeneous markets seems to have gained some popularity recently. However, the statistical properties of these frontier estimators have been largely ignored. The main point is that nonparametric frontier estimators are biased and that the degree of bias depends on specific sample properties, most importantly sample size and number of dimensions of the model. To investigate the effect of this bias on comparing market efficiency, this contribution estimates the efficiency for several datasets for two main product categories. Following Zhang and Bartels (1998), these results comprise re-estimates for the larger samples limiting their size to that of the smaller samples when the model dimensions for different samples are identical. Furthermore, sample sizes are adjusted to mitigate the eventual differences in dimensions in specification. This allows comparing market efficiency for different markets on a more equal footing, since it reduces the bias effect to a minimum making the comparison of market efficiency possible. However, the article also points out the critical limitations of this Zhang and Bartels (1998) approach in certain respects. Apart from reporting these negative results, we also offer some suggestions for future work.Market Efficiency, Heterogeneous Product Markets, Bias, Monte-Carlo Simulation

Assessing the assignation of public subsidies: Do the experts choose the most efficient R&D projects?

The implementation of public programs to support business R&D projects requires the establishment of a selection process. This selection process faces various difficulties, which include the measurement of the impact of the R&D projects as well as selection process optimization among projects with multiple, and sometimes incomparable, performance indicators. To this end, public agencies generally use the peer review method,which, while presenting some advantages, also demonstrates significant drawbacks. Private firms, on the other hand, tend toward more quantitative methods, such as Data Envelopment Analysis (DEA), in their pursuit of R&D investment optimization. In this paper, the performance of a public agency peer review method of project selection is compared with an alternative DEA method.peer review, dea, subsidies, r&d

The Chinese position as a global player in international comparison with the WTO members: Efficiency analysis and 4IR

During the last quarter-century, globalisation processes affected changes in the world economy in the form of intensifying competition in the international and internal markets. The result is the creation of a global marketplace that is mostly indifferent to national borders and governmental influences. This development has generated widespread interest in competitiveness. Competitiveness affects international relations, especially nowadays, given the changing position of the global leaders and the growth of new economic powers such as China. China has come a long way and has the opportunity to be a global leader in several required fields that will be the cornerstones of global growth in the next decades. Led by China, emerging economies are increasing their share in the worldwide economy and intensifying competition in nearly all sectors. It creates new threats and challenges for players in the global economy, and growing competitiveness must be efficient. The article evaluates the Chinese competitiveness in comparison with the World Trade Organization members by the Data Envelopment Analysis in the pre-in-post crisis period and considering the Fourth Industrial Revolution shifting humanity into a new phase.Web of Science6148

Efficiency evaluation of South Africa tertiary education institutions using data envelopment analysis

With an increasing number of students enrolling at higher education institutions in South Africa, it has become important to investigate whether these institutions are using their resources adequately. This study uses data envelopment analysis (DEA) to estimate the efficiency of 23 South African tertiary education institutions based on both teaching and research outputs. Using DEA we are able to rank South African universities according to their use of resources in these two areas. These rankings can identify institutions which are performing well and also those which require improvement. The effect that merging institutions has on this efficiency is also determined. Owing to the limited sample size, variable reduction techniques, including the efficiency contribution measure (ECM) and principal components analysis (PCA-DEA), were used to improve the discrimination of the analysis

A systematic methodology for the robust quantification of energy efficiency at wastewater treatment plants featuring Data Envelopment Analysis

© 2018. This is the accepted manuscript of the following article: Longo, S., Hospido, A., Lema, J., & Mauricio-Iglesias, M. (2018). A systematic methodology for the robust quantification of energy efficiency at wastewater treatment plants featuring Data Envelopment Analysis. Water Research, 141, 317-328. doi: 10.1016/j.watres.2018.04.067This article examines the potential benefits of using Data Envelopment Analysis (DEA) for conducting energy-efficiency assessment of wastewater treatment plants (WWTPs). WWTPs are characteristically heterogeneous (in size, technology, climate, function ...) which limits the correct application of DEA. This paper proposes and describes the Robust Energy Efficiency DEA (REED) in its various stages, a systematic state-of-the-art methodology aimed at including exogenous variables in nonparametric frontier models and especially designed for WWTP operation. In particular, the methodology systematizes the modelling process by presenting an integrated framework for selecting the correct variables and appropriate models, possibly tackling the effect of exogenous factors. As a result, the application of REED improves the quality of the efficiency estimates and hence the significance of benchmarking. For the reader's convenience, this article is presented as a step-by-step guideline to guide the user in the determination of WWTPs energy efficiency from beginning to end. The application and benefits of the developed methodology are demonstrated by a case study related to the comparison of the energy efficiency of a set of 399 WWTPs operating in different countries and under heterogeneous environmental conditionsThe authors belong to the Galician Competitive Research GroupGRC2013-032 and the CRETUS strategic partnership (AGRUP2015/02), co-funded by FEDER (EU). Besides, they are supported by ‘ENERWATER’ Coordination Support Action that has received founding from the European Union's Horizon 2020 research and innovation programme under grant agreement No 649819S