Allocative and scale efficiency among maize farmers in Zambia: a zero efficiency stochastic frontier approach

The commonly used stochastic frontier model assumes that all firms are inefficient. In this specification, inefficiency is non-negative, and the probability of inefficiency being exactly zero is also zero. To the extent that efficiency varies widely across farms in under-developed economies, it is important to employ techniques that account for both inefficiency and full efficiency to ensure unbiased efficiency estimates. In this study, we employ a zero-inefficiency stochastic frontier model to examine allocative efficiency and scale economies, as well as key determinants of efficiency among Zambian maize farmers. The results show that, unlike the stochastic frontier model, the zero-inefficiency stochastic frontier model successfully allows for both fully efficient and inefficient firms to be accounted for in the estimation procedure. The estimates also reveal the presence of scale economies, with the zero-inefficiency stochastic frontier model better predicting scale efficiency compared to the stochastic frontier model. The findings also show that inefficiency is explained by the level of education, access to extension services, distance to markets and access to credit.     

Applying data envelopment analysis in analysing the organizational change for credit departments of farmers’ associations in Taiwan

This study attempts to apply the data envelopment analysis to approach the performance of the credit departments of farmers’ associations in Taiwan. Based on the structure of the data envelopment analysis approach, this study measures the relative efficiency for credit departments of farmers’ associations in Taiwan via resource redistribution. When the amount of resource is fixed, it can be distributed to each unit within an organization in a better way. It is intended to find the possible improvements for those inefficient credit departments of farmers’ associations. The empirical results show that the overall efficiency scores of the teams indicate is not best and scale for credit departments of farmers’ associations in Taiwan is relatively small. It implies that the reorganization of the credit departments of farmers’ associations may be appropriate if more efficient organization is to be pursued. Finally the reorganization of the credit departments of farmers’ associations are studies, evidences show the results are really be improved and acceptable.     

Performance Indicators and Efficiency Measurement in Public Libraries

A sample of one hundred and sixty-eight New South Wales local government libraries is used to analyse the efficiency measures derived from the non-parametric technique of data envelopment analysis. Depending upon the assumptions employed, 9.5 per cent of local governments were judged to be overall technically efficient in the provision of library services, 47.6 per cent as pure technically efficient, and 10.1 per cent as scale efficient. The study also analyses the posited linkages between comparative performance indicators, productive performance and non-discretionary environmental factors under these different model formulations. The results indicate that the presence of exogenous factors and scale effects account for a major portion of the differences in observed efficiency between different groups of local governments.     

基于DEA的安徽省科技企业孵化器运行效率研究

采用数据包络分析中的BCC模型,实证分析了安徽省38家科技企业孵化器的运行效率,依据综合效率值将其分为有效、无效两类。结果显示,安徽大部分科技企业孵化器都处于无效状态。为进一步分析孵化器运行效率的差异及其产生的原因,根据纯技术效率均值和规模效率均值,再将其细分为相对高效型、配置低效型、规模低效型和完全无效型四类,并对综合效率值为1的科技企业孵化器进行超效率分析。最后,通过计算各资源投入的影子价格均值,为孵化器优化资源组合提供方向性引导。     

A DEA study to evaluate the relative efficiency and investigate the reorganization of the credit department of farmers’ associations in Taiwan

In this study data envelopment analysis models were applied to evaluate the relative efficiencies of the credit departments of farmers’ associations (CDFAs) in Taiwan. The findings show that the overall efficiency scores are not best and scale for CDFAs in Taiwan is relative small. It implies that the reorganization of the CDFAs may be appropriate if more efficient organization is to be pursued. Thus, this study investigated CDFAs reorganization to increase the efficiency. The proposed CDFAs reorganization alternatives have higher average efficiency scores than the current CDFAs.     

Willingness and ability of Bulgarian consumers to pay for improved public health care services

An application of the contingent valuation method to the willingness and ability of Bulgarian consumers to pay for public health care services is presented. The study uses data from a household survey conducted in May–June 2000. The willingness and ability to pay for outpatient, inpatient and dental services is investigated. A combination of interval checklist and open-ended questions are used to elicit the willingness-to-pay amounts. The impact of the sociodemographic characteristics on the responses is examined by a generalized Tobit regression. Based on the regression equation, the welfare effects of various fee levels are simulated.     

ANALYSIS OF THE POSSIBILITIES FOR EXPANSION OF SERVICES IN TANZANIAN SAVINGS AND CREDITS CO‐OPERATIVE SOCIETIES: LEARNING FROM ECONOMIES OF SCALE

Savings and Credit Co‐operative Societies (SACCOS) increasingly recognized as the valuable tool for economic development in low‐income countries. However, recently researchers reported that one of their primary challenges to their expansion is the high level of inefficient. In this study, we analyzed the relationship between growth and efficiency of SACCOS using economies of scale concept. Then we address the role of management of the capital structure and allocation of resources in the expansion of SACCOS. The study used financial statement data from 60 SACCOS in Tanzania for the period of 2004–2011. The findings supports that most of SACCOS are small and cost inefficient because the industry is young, but, the efficiency increases as SACCOS expand. Second the allocation of resources in liquid, financial and non‐financial investment leads to no expansion in SACCOS. Thus, the growth of SACCOS via increasing loan to members, members’ savings, shares, and institutional capital should be encouraged as it increases the efficiency of SACCOS. Also, SACCOS should minimize the allocation of assets in other investments which are different from credit to members.     

Energy price disparity and public welfare

The differences in the price of energy to economic sectors are linked to a number of system parameters and to public welfare. There are large disparities in energy prices within states when comparing residential and industrial prices although neoclassical economics predicts one price in markets. The large disparities between the two sectors across states negatively affects the efficiency of resource allocation, creates subsidies for those getting the cheap energy and results in unequal access to energy. These in turn lead to inefficient partitioning of energy between products and waste, higher pollution, leakage of wealth and poorer energy use efficiency, i.e. high energy intensity. States with large energy price disparities between sectors have statistically higher poverty, lower incomes, more pollution and use more energy but with less efficiency. Higher energy price disparities also result in higher throughput per unit of output thus reducing the chances for sustainability and lower public welfare.     

Education production efficiency: Evidence from Brazilian universities

The purpose of this paper is to estimate the efficiency of higher education institutions in Brazil with emphasis on its determinants, taking particularly into account the relative efficiency of public and private institutions on the application of their resources. The availability of scores in standardized tests for Brazilian universities helps a lot with this task since they provide a widely accepted output measure. The difference between the scores of last-year and first-year students in ENADE is used to measure performance. There exists an entrance exam in Brazilian universities where they can screen out their students. Therefore we believe that students' characteristics should be considered a non-discretionary input and consequently explain the output. This specification implies that public institutions are more inefficient than private ones.     

Measuring and explaining the efficiencies of the United Arab Emirates banking system

Using newly collected data from a survey distributed to all banks in the United Arab Emirates (UAE), this article measures economic efficiency in the banking industry, namely allocative, technical, pure technical and scale efficiency. Employing a nonparametric Data Envelopment Analysis (DEA) approach, the study estimates the efficiency for a cross section of the UAE banks in 2004. The results indicate that the dominant source of inefficiency in the UAE banking is stemming from allocative inefficiency rather than technical inefficiency. Furthermore, the main source of the relatively small size, technical inefficiency in the UAE banking industry is not the scale inefficiency but rather pure technical inefficiency. The results further indicate that the UAE banks are able to use their input resources more efficiently when they have more branches, and that newer banks are performing better than older banks on average. Moreover, the results also show that short experiences of employees affect efficiencies negatively and government ownership tends to reduce efficiency (as the government shares increase in the bank, the efficiency scores get lower). Finally, the most interesting results have to do with finding higher average efficiencies in banks that employ more women, more managers and less national citizens of the UAE.     

Investment climate and firm productivity: an application to Vietnamese manufacturing firms

The fundamental aspect of a national competitive advantage is a good investment climate. Understanding the role of the investment climate in generating firm productivity has received extensive attention by policymakers and economists in many countries. The article studies the effect of different dimensions of the investment climate on firm productivity. Using a large dataset of Vietnamese manufacturing firms, the article finds that deficiencies in the investment climate are prejudicial to firm productivity and competition. Furthermore, in examining the effect of corruption in association with the quality of the business environment, the study also investigates the possibility that corruption may compensate firms for a bad investment climate or at least may neutralize the negative impact of inefficient government regulations. In other words, corruption acts as ‘speed money’ to improve the efficacy of the provision of public services or provides leeway for entrepreneurs to bypass the inefficient regulations. This situation, however, is extremely harmful to the economy in the long run because it distorts the market and erodes the incentives for productive investments. Developing countries therefore need to put much more effort into institutional reforms, especially fighting corruption and efficiency in the provision of public goods and services.     

微型金融机构的效率权衡：财务效率与社会效率 ——以江苏省小额贷款公司为例

在微型金融机构的财务持续和社会拓展双重目标下,本文采用56家江苏省小额贷款公司的调查数据,使用DEA Tobit方法分析了小额贷款公司的财务效率和社会效率的目标权衡。结果显示：（1）在经营策略和技术进步上,小额贷款公司的财务效率和社会的平均值基本等同,且效率值的数量分布相似,但经营规模上,财务效率的平均值小于社会效率,且其数量分布范围比社会效率更大;（2）金融发展对小额贷款公司的财务效率和社会效率均产生负向影响;（3）小额贷款公司的盈利能力、资产规模都有助于其财务效率和社会效率的提升,而支农广度仅对财务效率影响为负,但对社会效率的影响不明显。     

Efficiency and Equity in Funding for Government Schools in Australia

This study measures cost inefficiency for government school in New South Wales, Australia using a two‐stage data envelopment analysis (TSDEA) model and the inefficiency‐effects model (Battese & Coelli, 1995). The study found overall primary schools are 75 per cent and secondary schools are 89 per cent cost efficient. However, cost efficiency for primary schools has decreased and for secondary schools has increased marginally over the study period. The study found that social disadvantage in primary schools exerts a strong negative impact on students’ achievement scores causing inefficient use of available resources. For secondary schools no such conclusive relationship is observed.     

A Vicarious Innovativeness Scale for 3G Mobile Services: Integrating the Domain Specific Innovativeness Scale with Psychological and Rational Indicators

The paper aims to validate a vicarious innovativeness scale for its usefulness in understanding and predicting third generation (3G) mobile services acceptance. Illustrations are based on a survey of 150 young people, and structural equation modelling techniques were used to analyse the data. In this paper: (1) the relevant literature is reviewed; (2) a theoretical framework is built, and hypotheses proposed based on consumer innovativeness theory; (3) the results of an empirical survey designed to test these hypotheses are presented; and (4) it concludes with a general discussion and proposed directions for future research. In this study, the psychometric characteristics and criterion (predictive) validity of the scale are evaluated in order to support claims that domain specific innovativeness scale integrated with psychological and cognitive items could be used to research this domain of consumer behaviour. Evidence for a unidimensional measure of vicarious innovativeness is provided.     

A Vicarious Innovativeness Scale for 3G Mobile Services: Integrating the Domain Specific Innovativeness Scale with Psychological and Rational Indicators

The paper aims to validate a vicarious innovativeness scale for its usefulness in understanding and predicting third generation (3G) mobile services acceptance. Illustrations are based on a survey of 150 young people, and structural equation modelling techniques were used to analyse the data. In this paper: (1) the relevant literature is reviewed; (2) a theoretical framework is built, and hypotheses proposed based on consumer innovativeness theory; (3) the results of an empirical survey designed to test these hypotheses are presented; and (4) it concludes with a general discussion and proposed directions for future research. In this study, the psychometric characteristics and criterion (predictive) validity of the scale are evaluated in order to support claims that domain specific innovativeness scale integrated with psychological and cognitive items could be used to research this domain of consumer behaviour. Evidence for a unidimensional measure of vicarious innovativeness is provided.     

Toward ‘privatization’ of public sector output: decentralized contracting for public and private goods

Public sector goods and services can be produced in the private sector. The challenge is to provide incentives for allocative and technological efficiency. Either of two mechanisms is proposed to accomplish this. To ensure allocative efficiency, the proposed mechanisms require knowledge of the complete schedule of benefits. Alternatively, they can use information available on benefits in an efficient manner. Costs need not be known to authorities. Profit maximization leads to efficient private sector responses to cost changes over time. Either mechanism can be combined with the demand revealing process to circumvent the need for ex ante information on benefits.     

The three Is of public schools: irrelevant inputs,insufficient resources and inefficiency

We examine the educational production function and efficiency of public school districts in Illinois. Using non-parametric kernel methods, we find that most traditional schooling inputs are irrelevant in determining test scores (even in a very general setting). Property tax caps are the only relevant factor that is related to districts’ financial constraints and have predominantly negative associations with test scores. Therefore, insufficient resources may be partially responsible for the lack of growth in test scores. For most other relevant inputs, we find substantial heterogeneity in the returns, which helps reconcile some of the puzzling results in the literature. We further find that there exist inefficiencies in school districts. Moreover, the level of test scores, commonly used as a measure of school effectiveness, (while related) differs substantially from our efficiency scores, and standard parametric approaches drastically underestimate school efficiency. We discuss the policy implications of our results.     

Budgeting for efficiency? A case study of the public K-12 education systems of Canada

In spite of the declining and uneven performance of Canadian students on the OECD’s Programme for International Student Assessment (PISA) tests, little attention has been paid to whether provinces are allocating their education budgets to improve academic performance. This study uses a two-stage data envelope analysis (DEA) technique to estimate the degree to which education expenditures are efficiently allocated relative to achievement scores. We find that in these terms the overall cost-efficiency of the public K-12 education systems in the 10 provinces has deteriorated and that, in general, the provinces have become less able to allocate resources efficiently and use them in the most technically productive way. However, some provinces are more efficient than others. To gauge the extent to which performance measures, such as PISA scores, factor into budgeting decisions we interviewed 28 budget managers in 10 Canadian provinces and two territories, probing the criteria used to allocate education resources. The preponderant pattern of budgeting is described as an ‘increments-based-on-formula’ approach, one that is not particularly responsive to efficiency concerns but that often takes account of equity imperatives.     

Political preferences and public sector outsourcing

Given the intensive and ideologically charged debate over the use of private contractors for publicly funded services, it is somewhat surprising that many social scientists have preferred to explain government outsourcing by the pursuit of economic efficiency. Starting out from different theories, we investigate political explanations of government outsourcing using a Swedish data set in which outsourcing varies between municipalities and over time, as well as between services. Our identification strategy focuses on two services with similar contracting problems and local market conditions: preschools and primary schools. We study a period in which Swedish municipalities had full discretion in the provision of preschools, while their influence on the private provision of primary education was limited by a national voucher system. The comparison of preschools with primary schools in a difference-in-differences model suggests that the political color of the ruling majority influences outsourcing, which is consistent with the Citizen Candidate model of representative democracy.