The informativeness of stochastic frontier and programming frontier efficiency scores: Cost efficiency and other measures of bank holding company performance

This paper examines the properties of the X-inefficiencies in U.S. bank holding companies derived from both stochastic and linear programming frontiers. This examination allows the robustness of results across methods to be compared. While we find that calculated programming inefficiency scores are two to three times larger than those estimated using a stochastic frontier, the patterns of the scores across banks and time are similar, and there is a relatively high correlation of the rankings of banks' efficiencies under the two methods. However, when we examine the "informativeness" of the efficiency measured by the two different techniques, we find some large differences. We find evidence that the stochastic frontier scores are more closely related to risk-taking behavior, managerial competence, and bank stock returns. Based on these findings, we conclude that while both methods produce informative efficiency scores, for this data set decision makers should put more weight on the stochastic frontier efficiency estimates.Bank holding companies ; Banks and banking - Costs

Issues of scale and scope in bio-physical modelling for natural resource management decision making in New South Wales

Natural resource management decision making by Catchment Management Authorities in NSW is being aided by a project involving bio-physical modelling and the development of an alternative decision-making framework. The objective of the bio-physical modelling process is to generate predictions of environmental or natural resource outcomes rather than project outputs. These outcomes can then be used in an investment framework to help priority setting and project decision making. Questions that arise in bio-physical modelling include those relating to scale and scope. Scale issues include how to address the landscape impacts of particular (or a series of local) on-ground works proposals. Scope issues include assessment of multiple-attribute responses to particular changes. In a multi-disciplinary context the challenge is then to translate this information into units that can be adapted to a decision-support framework. Existing Catchment Management Authorities decisions are often based on scoring and weighting of environmental improvements using an environmental benefits index, however other economic frameworks are possible. We discuss the important context for these questions in the decision making framework.environmental benefits, bio-physical models, scale, scope, investment decisions, Resource /Energy Economics and Policy,

The Biodiversity Forecasting Toolkit: Answering the ‘how much’, ‘what’, and ‘where’ of planning for biodiversity persistence

AbstractThis research reports on a new approach to conservation assessment that seeks to extend the target-based model traditionally underpinning systematic conservation planning. The Biodiversity Forecasting Tool (BFT) helps answer three important questions relating to regional biodiversity persistence: ‘how much’ biodiversity can persist for a given land-management scenario; ‘what’ habitats to focus conservation effort on; and ‘where’ in the landscape to undertake conservation action. The tool integrates fine-scaled variability in vegetation composition and structure with spatial context, which is critical for ensuring the viability of populations. Thus, a raster data framework is employed which deems each location or gridcell in a landscape as contributing to biodiversity benefits to various degrees. At its simplest, just two spatial inputs, vegetation community types and vegetation condition, are needed. Drawing on, as a case-study, a broad-scale biodiversity assessment for NSW, Australia, this paper reports on the successful application of the BFT tool for a variety of functions ranging from interactive scenario evaluation through to conservation benefits mapping

The Biodiversity Forecasting Toolkit: Answering the ‘how much’, ‘what’, and ‘where’ of planning for biodiversity persistence

AbstractThis research reports on a new approach to conservation assessment that seeks to extend the target-based model traditionally underpinning systematic conservation planning. The Biodiversity Forecasting Tool (BFT) helps answer three important questions relating to regional biodiversity persistence: ‘how much’ biodiversity can persist for a given land-management scenario; ‘what’ habitats to focus conservation effort on; and ‘where’ in the landscape to undertake conservation action. The tool integrates fine-scaled variability in vegetation composition and structure with spatial context, which is critical for ensuring the viability of populations. Thus, a raster data framework is employed which deems each location or gridcell in a landscape as contributing to biodiversity benefits to various degrees. At its simplest, just two spatial inputs, vegetation community types and vegetation condition, are needed. Drawing on, as a case-study, a broad-scale biodiversity assessment for NSW, Australia, this paper reports on the successful application of the BFT tool for a variety of functions ranging from interactive scenario evaluation through to conservation benefits mapping

Which environmental variables should I use in my biodiversity model?

Appropriate selection of environmental variables is critical to the performance of biodiversity models, but has received less attention than the choice of modelling method. Online aggregators of biological and environmental data, such as the Global Biodiversity Information Facility and the Atlas of Living Australia, necessitate a rational approach to variable selection. We outline a set of general principles for systematically identifying, compiling, evaluating and selecting environmental variables for a biodiversity model. Our approach aims to maximise the information obtained from the analysis of biological records linked to a potentially large suite of spatial environmental variables. We demonstrate the utility of this structured framework through case studies with Australian vascular plants: regional modelling of a species distribution, continent-wide modelling of species compositional turnover and environmental classification. The approach is informed by three components of a biodiversity model: (1) an ecological framework or conceptual model, (2) a data model concerning availability, resolution and variable selection and (3) a method for analysing data. We expand the data model in structuring the problem of choosing environmental variables. The case studies demonstrate a structured approach for the: (1) cost-effective compilation of variables in the context of an explicit ecological framework for the study, attribute accuracy and resolution; (2) evaluation of non-linear relationships between variables using knowledge of their derivation, scatter plots and dissimilarity matrices; (3) selection and grouping of variables based on hypotheses of relative ecological importance and perceived predictor effectiveness; (4) systematic testing of variables as predictors through the process of model building and refinement and (5) model critique, inference and synthesis using direct gradient analysis to evaluate the shape of response curves in the context of ecological theory by presenting predictions in both geographic and environmental space

The consequence of excess configurational entropy on fragility: the case of a polymer/oligomer blend

By taking advantage of the molecular weight dependence of the glass transition of polymers and their ability to form perfectly miscible blends, we propose a way to modify the fragility of a system, from fragile to strong, keeping the same glass properties, i.e. vibrational density of states, mean-square displacement and local structure. Both slow and fast dynamics are investigated by calorimetry and neutron scattering in an athermal polystyrene/oligomer blend, and compared to those of a pure 17-mer polystyrene considered to be a reference, of same Tg. Whereas the blend and the pure 17-mer have the same heat capacity in the glass and in the liquid, their fragilities differ strongly. This difference in fragility is related to an extra configurational entropy created by the mixing process and acting at a scale much larger than the interchain distance, without affecting the fast dynamics and the structure of the glass

The Status of the Rufous Scrub-Bird 'Atrichornis Rufescens': Habitat, Geographical Variation and Abundance

The status of the Rufous Scrub-bird 'Atrichornis rufescens' has always been difficult to assess due to the bird's secretive nature and the density of its habitat. The primary aim of this study has been to provide a scientific basis for future assessment of status by answering questions concerning three aspects of the species' biology: detectability, habitat requirements, and geographical variation. A secondary aim of the study has been to provide a preliminary assessment of status based on the results of an exploratory survey, interpreted within the context of the intensive research findings

Annual changes in the Biodiversity Intactness Index in tropical and subtropical forest biomes, 2001–2012

Few biodiversity indicators are available that reflect the state of broad-sense biodiversity—rather than of particular taxa—at fine spatial and temporal resolution. One such indicator, the Biodiversity Intactness Index (BII), estimates how the average abundance of the native terrestrial species in a region compares with their abundances in the absence of pronounced human impacts. We produced annual maps of modelled BII at 30-arc-second resolution (roughly 1 km at the equator) across tropical and subtropical forested biomes, by combining annual data on land use, human population density and road networks, and statistical models of how these variables affect overall abundance and compositional similarity of plants, fungi, invertebrates and vertebrates. Across tropical and subtropical biomes, BII fell by an average of 1.9 percentage points between 2001 and 2012, with 81 countries seeing an average reduction and 43 an average increase; the extent of primary forest fell by 3.9% over the same period. We did not find strong relationships between changes in BII and countries’ rates of economic growth over the same period; however, limitations in mapping BII in plantation forests may hinder our ability to identify these relationships. This is the first time temporal change in BII has been estimated across such a large region

Linking biodiversity into national economic accounting

Biodiversity underpins the supply of ecosystem services essential for well-being and economic development, yet biodiversity loss continues at a substantial rate. Linking biodiversity indicators with national economic accounts provides a means of mainstreaming biodiversity into economic planning and monitoring processes. Here we examine the various strategies for biodiversity indicators to be linked into national economic accounts, specifically the System of Environmental-Economic Accounts Experimental Ecosystem Accounting (SEEA EEA) framework. We present what has been achieved in practice, using various case studies from across the world. These case studies demonstrate the potential of economic accounting as an integrating, mainstreaming framework that explicitly considers biodiversity. With the right indicators for the different components of biodiversity and scales of biological organisation, this can directly support more holistic economic planning approaches. This will be a significant step forward from relying on the traditional indicators of national economic accounts to guide national planning. It is also essential if society’s objectives for biodiversity and sustainable development are to be met