Measuring and Explaining Government Inefficiency in Developing Countries

We show the relevance of government expenditure inefficiency using the Barro (1990) model. We estimate government inefficiency for 52 developing countries using a data envelopment analysis. The estimated inefficiencies are subsequently used in a general to specific approach in order to identify their determinants. We find the government expenditure inefficiency is primarily determined by governance and political variables, and structural country variables. Economic policy determinants apparently count less. Government inefficiency of the Sub Saharan countries in the sample is substantially higher. --Government inefficiency,data envelopment analysis,economic development

How far are Portuguese prisons inefficient? A non-parametric approach

In Portugal, as worldwide, especially in the past decades, crime has become an issue of increasing interest both for society and researchers. The global growth of criminality had several repercussions in the prison system. The most direct one was the overcrowding of prisons. This situation required a great amount of investment to increase the capacity of Portuguese prisons. Simultaneously, the value for money associated with the prisons’ budget has turned itself more and more relevant. These circumstances together emphasize the importance of assessing the prisons’ performance. This study measures the efficiency of Portuguese prison facilities by means of the non-parametric benchmarking approach of data envelopment analysis (DEA). However, due to the limitations of this technique, a bootstrap methodology is also applied in order to add more robustness to the results. Furthermore, a recent procedure is computed to evaluate congestion. The results show relevant levels of inefficiency in the Portuguese prison facilities, which represent an excess of several millions of Euros spent inadequately in this sector.Bootstrap; Congestion; DEA; Efficiency; Portugal; Prison facilities

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

Market structure and hospital efficiency: Evaluating potential effects of deregulation in a national health service

In this article we examine the potential effect of market structure on hospital technical efficiency as a measure of performance controlled by ownership and regulation. This study is relevant to provide an evaluation of the potential effects of recommended and initiated deregulation policies in order to promote market reforms in the context of a European National Health Service. Our goal was reached through three main empirical stages. Firstly, using patient origin data from hospitals in the region of Catalonia in 1990, we estimated geographic hospital markets through the Elzinga--Hogarty approach, based on patient flows. Then we measured the market level of concentration using the Herfindahl--Hirschman index. Secondly, technical and scale efficiency scores for each hospital was obtained specifying a Data Envelopment Analysis. According to the data nearly two--thirds of the hospitals operate under the production frontier with an average efficiency score of 0.841. Finally, the determinants of the efficiency scores were investigated using a censored regression model. Special attention was paid to test the hypothesis that there is an efficiency improvement in more competitive markets. The results suggest that the number of competitors in the market contributes positively to technical efficiency and there is some evidence that the differences in efficiency scores are attributed to several environmental factors such as ownership, market structure and regulation effects.Geographic markets, market concentration, technical efficiency, data envelopment analysis, censored regression model

Are the New British Universities Congested?

This paper uses data envelopment analysis (DEA) to examine the issue of congestion in British universities. The focus of the paper is on 41 former polytechnics that became universities in 1992, and the analysis covers the period 1995/6 to 2003/4. These new universities differ from the older universities in many ways, especially in terms of their far higher student : staff ratios and substantially lower research funding per member of staff. The primary aim of the paper is to examine whether this under-resourcing of the new universities has led to ‘congestion’, in the sense that their output has been reduced as a result of having too many students. Three alternative methods of measuring congestion are examined and, to check the sensitivity of the results to different specifications, three alternative DEA models are formulated. The results reveal that a substantial amount of congestion was present throughout the period under review, and in a wide range of universities, but whether it rose or fell is uncertain, as this depends on which congestion model is used. The results indicate that an overabundance of undergraduate students was the largest single cause of congestion in the former polytechnics during the period under review. Less plausibly, the results also suggest that academic overstaffing was a major cause of congestion! By contrast, postgraduates and ‘other expenditure’ are found to play a noticeably smaller role in generating congestion.British New Universities; congestion;

The Tale of Two research Communities: The Diffusion of Research on Productive Efficiency

The field of theoretical and applied efficiency analysis is pursued both by economists and people from operational research and management science. Each group tends to cite a different paper as the seminal one. Recent availability of extensive electronically accessible databases of journal articles makes studies of the diffusion of papers through citations possible. Research strands inspired by the seminal paper within economics are identified and followed by citation analysis during the 20 year period before the operations research paper was published. The first decade of the operations research paper is studied in a similar way and emerging differences in diffusion patterns are pointed out. Main factors influencing citations apart from the quality of the research contribution are reputation of journal, reputation of author, number of close followers; colleagues, “cadres of protégés”, Ph.D. students, and extent of network (“invisible college”). Such factors are revealed by the citing papers. In spite of increasing cross contacts between economics and operations research the last decades co-citation analysis reveals a relative constant tendency to stick to “own camp” references.Farrell efficiency measures, data envelopment analysis, DEA, bibliometry

Measuring the Efficiency of Pesantren Cooperatives: Evidence in Indonesia

The Cooperative (Koperasi) as a non-Bank financial institution has the purpose of improving the welfare of its members as Koperasi Hidmat and the staffs of Latifah Mubarokiyah Koperasi Ponses Suryalaya that have been since decades ago. Over time, the ideal cooperative can show a significant development and increase the welfare of its members. This study aims to determine the efficiency of cooperative as a benchmark, because by known the performance value of a cooperation, it will known the weeknesses and advantages so that it can be improved the weaknesses and maintain the advantages.The method used is apply Data Envelopment Analysis (DEA). Inputs used from principal savings, mandatory savings, and fixed assets while the output used from savings in the cooperative, savings in other cooperative and SHU. As for result of this research indicates there are 9 perfect efficient DMUs (100 %) and inefficient DMU is 11 DMUs, consisting of 7 (IRS conditions) and 4 (DRS condition). The most inefficient cooperative is Koperasi Hidmat (2014) of 30.66% efficiency level.Kopkar IAILM is able to maintain its grade efficiency level from 2009 to 2015 when compared to other DMUs cooperatives in the observation, except in 2014. The calculation of efficiency level in this research is relative and it is not absolute, so that it is possible when the cooperative sample is added or the observation year is expanded, so it will get different result. The necessity of any cooperative or BMT based on Pondok Pesantren to make annual financial statements in order to increase accountability and transparency of fund management

Does Expansion Cause Congestion? The Case of the Older British Universities, 1994 to 2004

This paper examines whether the rapid growth in the number of students in British universities in recent years has led to congestion, in the sense that certain universities’ output could have been higher if this expansion had been less rapid. The focus of the paper is on 45 older universities that were in existence prior to 1992. The analysis covers the period 1994/5 to 2003/4. Several alternative methods of measuring congestion are examined and, to check the sensitivity of the results to different specifications, three alternative DEA models are formulated. The results indicate that congestion was present throughout the decade under review, and in a wide range of universities, but whether it rose or fell is uncertain, as this depends on which congestion model is used. A crucial point here is whether one assumes constant or variable returns to scale. Nonetheless, all models point to a rise in congestion between 2001/2 and 2003/4, and this may well be a result of the rapid growth that occurred in this period. All models also record a sharp drop in mean technical efficiency in 2003/4. A possible explanation of the absence of a clear-cut trend in congestion is that the student : staff ratio in these universities was relatively stable in the decade under review, rising only gently from 2000/1 onwards.British universities; congestion; DEA

Changes in Hospital Efficiency after Privatization

We investigated the effects of privatization on hospital efficiency in Germany. To do so, we obtained bootstrapped DEA efficiency scores in the first stage of our analysis and subsequently employed a difference-in-difference matching approach within a panel regression framework. Our findings show that conversions from public to private for-profit status were associated with an increase in efficiency of between 3.2 and 5.4%. We defined four alternative post- privatization periods and found that the increase in efficiency after a conversion to private for- profit status appeared to be permanent. We also observed an increase in efficiency one year after hospitals were converted to private non-profit status, but our estimations suggest that this effect was transitory. Our findings also show that the efficiency gains after a conversion to private for-profit status were achieved through substantial decreases in staffing ratios in all analyzed staff categories with the exception of physicians. It was also striking that the efficiency gains of hospitals converted to for-profit status were significantly lower in the DRG era than in the pre-DRG era. Altogether, our results suggest that converting hospitals to private for-profit status may be an effective way to ensure the scarce resources in the hospital sector are used more efficiently.Privatization, Performance measurement, Data envelopment analysis, Propensity score matching, Germany