Allocating the fixed cost:an approach based on data envelopment analysis and cooperative game

Allocating the fixed cost among a set of users in a fair way is an important issue both in management and economic research. Recently, Du et al. (Eur J Oper Res 235(1): 206–214, 2014) proposed a novel approach for allocating the fixed cost based on the game cross-efficiency method by taking the game relations among users in efficiency evaluation. This paper proves that the novel approach of Du et al. (Eur J Oper Res 235(1): 206–214, 2014) is equivalent to the efficiency maximization approach of Li et al. (Omega 41(1): 55–60, 2013), and may exist multiple optimal cost allocation plans. Taking into account the game relations in the allocation process, this paper proposes a cooperative game approach, and uses the nucleolus as a solution to the proposed cooperative game. The proposed approach in this paper is illustrated with a dataset from the prior literature and a real dataset of a steel and iron enterprise in China

A COMPARISON OF DEPARTMENTAL TEACHING EFFICIENCY IN THE COLLEGE OF AGRICULTURE, FOOD SYSTEMS, AND NATURAL RESOURCES: AY2000-AY2004

Teaching efficiency is investigated for the nine departments in the College of Agriculture, Food Systems, and Natural Resources at North Dakota State University. Using Data Envelopment Analysis, departments are compared to their College peers in converting teaching faculty and teaching funds into three teaching outputs: student credit hours generated, undergraduate majors, and graduate students. Most departments are efficient in the technical conversion of inputs to outputs under variable returns to scale. Scale effects are evident, indicating some departments consistently extract higher average productivity from inputs in servicing undergraduate majors, graduate students, and in generating student credit hours.Teaching/Communication/Extension/Profession,

Benchmarking and Regulation of Electricity Transmission and Distribution Utilities: Lessons from International Experience

Since the early 1980's, many countries have implemented electricity sector reform, many of which have bundled generation, transmission, distribution and supply activities, and have introduced competition in generation and supply. An increasing number of countries are also adopting incentive regulation to promote efficiency improvement in the natural monopoly activities - transmission and distribution. Incentive regulation almost invariably involves benchmarking or comparison of actual vs. some reference performance. This paper reviews the main approaches to incentive regulation and discusses various benchmarking methods. We also present the finding of a survey of the use of benchmarking methods in the OECD and few other countries. Our survey finds a variety of methods used by the electricity regulators although with a notable preference for the non-parametric methods. We then draw conclusions based on the finding of the survey highlighting the main outstanding issues and lessons for best practice implementation of benchmarking in electricity regulation

Allocating Tradable Emissions Permits Based on the Proportional Allocation Concept to Achieve a Low-Carbon Economy

A key issue within the emissions trading system is how tradable emissions permits (TEPs) are initially allocated among a set of entities. This study proposes an approach based on the proportional allocation concept to allocate TEPs among a set of decision making units (DMUs). We firstly deduce a TEP allocation set based on the rule that the TEPs allocated to DMUs should be proportional to their environmental contribution. We then obtain the allocation intervals of DMUs from the set, expressing the allocation as the convex combination between the upper and the lower bound. Finally, we define the satisfaction degree as the coefficient of the convex combination, and propose an algorithm based on the max-min fairness of satisfaction degrees to obtain a unique TEP allocation plan. To illustrate our approach, we provide the example of how TEPs are allocated among 30 provincial administrative regions in China. Our findings indicate that our allocation method can be helpful for achieving a saving in energy consumption and reducing emissions. In addition, from the data envelopment analysis perspective, the TEP allocation set can ensure that both each individual DMU and the organization as a whole become efficient under a common set of variable weights

Efficiency and Productivity of Indonesian Islamic Banking

The direction of the Indonesian banking industry development policy based on the vision of achieving a healthy banking system, strong and efficient to create a stable financial system in order to drive national economic growth. Using analysis of efficiency and changes in Total Factor Productivity of the banking industry during the 2004 to 2009 period, this research aims to observe at the performance of Islamic banking as the new actors of Indonesian banking industry. To analyze the efficiency, this research utilize the method of non-parametric Data Envelopment Analysis (DEA). To measure changes in Total Factor Productivity of Islamic banking industry Malmquist Productivity Index is utilized. From the calculation of relative efficiency by means of input-oriented DEA and also the assumption of Variable Returns to Scale, the study indicated that the efficiency of Islamic banks in the 2004-2009 period are lower on the average compared to conventional banks; except during the period of July 2004 to December 2005. There are three Islamic banks analyzed for this particular research, namely Bank Muamalat, Bank Syariah Mandiri and Bank Syariah Mega, consecutively ranked 3rd, 10th, and 13th within the index of productivity. Yet, the results of t-test concluded that the efficiency and productivity of Islamic banks and conventional banks, statistically, are not significantly different. These results indicated that Islamic banking in general possess the ability to compete with conventional banking in Indonesia

Efficiency and productivity of Indonesian Islamic Banking

The direction of the Indonesian banking industry development policy based on the vision of achieving a healthy banking system, strong and efficient to create a stable financial system in order to drive national economic growth. Using analysis of efficiency and changes in Total Factor Productivity of the banking industry during the 2004 to 2009 period, this research aims to observe at the performance of Islamic banking as the new actors of Indonesian banking industry. To analyze the efficiency, this research utilize the method of non-parametric Data Envelopment Analysis (DEA). To measure changes in Total Factor Productivity of Islamic banking industry Malmquist Productivity Index is utilized. From the calculation of relative efficiency by means of input-oriented DEA and also the assumption of Variable Returns to Scale, the study indicated that the efficiency of Islamic banks in the 2004-2009 period are lower on the average compared to conventional banks; except during the period of July 2004 to December 2005. There are three Islamic banks analyzed for this particular research, namely Bank Muamalat, Bank Syariah Mandiri and Bank Syariah Mega, consecutively ranked 3rd, 10th, and 13th within the index of productivity. Yet, the results of t-test concluded that the efficiency and productivity of Islamic banks and conventional banks, statistically, are not significantly different. These results indicated that Islamic banking in general possess the ability to compete with conventional banking in Indonesia.Keywords: Indonesian Islamic Banking, DEA, Efficiency, Malmquist Index, Total Factor Productivity