Productive Efficiency of the Swine Industry in Hawaii: Stochastic Frontier vs. Data Envelopment Analysis

Improving productive efficiency is an increasingly important determinant of the future of the swine industry in Hawaii. This paper examines the productive efficiency of a sample of swine producers in Hawaii by estimating a stochastic frontier production function and the constant returns to scale (CRS) and variable returns to scale (VRS) output-oriented DEA models. The technical efficiency estimates obtained from the two frontier techniques are compared. The scale properties are also examined under the two approaches. The industry's potential for increasing production through improved efficiency is also discussed.     

Measuring Cost Efficiency in European Banking: A Comparison of Frontier Techniques

This paper investigates the consistency of efficiency frontier methods on European banking samples. We measure the cost efficiency of banks from five European countries (France, Germany, Italy, Spain, Switzerland) with three approaches: stochastic frontier approach, distribution-free approach, and data envelopment analysis. We compare means, correlation coefficients, two public policy issues, and the correlation with standard measures of performance. In general, we conclude in favor of the lack of robustness between approaches, even if there are some similarities in particular between parametric approaches. We do, however, observe some correlation between all frontier approaches and standard measures of performance.     

Relative Performance of U.S. and Japanese Electricity Distribution: An Application of Stochastic Frontier Analysis

This paper estimates and compares the technical efficiency of the U.S. and Japanese electric utilities during the period 1982–1997 using a stochastic frontier analysis. Our focus is on electricity distribution services of major investor-owned utilities. We employ translog input distance functions to represent the technology of electricity distribution. Empirical results show that after controlling for environmental variables, on average, the Japanese electric utilities are more efficient. It is shown, however, that some U.S. utilities are as efficient as the most efficient Japanese utilities, indicating that the estimated frontier is not necessarily dominated by Japanese utilities.An erratum to this article can be found at     

A Mathematical Programming Approach for Measuring Technical Efficiency in a Fuzzy Environment

A three stage approach is proposed to measure technical efficiency in a fuzzy environment. This approach uses the traditional data envelopment analysis framework and then merges concepts developed in fuzzy parametric programming (Carlsson and Korhonen, 1986). In the first stage, vague input and output variables are expressed in terms of their risk-free and impossible bounds and a membership function. This membership function represents the degree to which a production scenario is plausible. In the second stage, conventional efficiency measurement models (Banker, Charnes and Cooper, 1984; Deprins, Simar and Tulkens, 1984) are re-formulated in terms of the risk-free and impossible bounds and the membership function for each of the fuzzy input and output variables. In the third stage, technical efficiency scores are computed for different values of the membership function so as to identify uniquely sensitive decision making units. The approach is illustrated in the context of a preprint and packaging manufacturing line which inserts commercial pamphlets into newspapers.     

Measurement of Dynamic Efficiency in Production: An Application of Data Envelopment Analysis to Japanese Electric Utilities

The purpose of this paper is to measure productive efficiencies when a firm employs quasi-fixed inputs that cannot be instantaneously adjusted to their optimal levels. To this end, data envelopment analysis (DEA) is extended to a dynamic framework so that investment behavior can be modelled with the efficient production frontier. Based on the work of Nemoto and Goto (1999), we show how the efficiencies of quasi-fixed inputs and their adjustment processes are evaluated. An application to Japanese electric utilities over the 1981–1995 period delivers empirically plausible results and proves the usefulness of the procedure.     

DEA, DFA and SFA: A comparison

The nonparametric data envelopment analysis (DEA) model has become increasingly popular in the analysis of productive efficiency, and the number of empirical applications is now very large. Recent theoretical and mathematical research has also contributed to a deeper understanding of the seemingly simple but inherently complex DEA model. Less effort has, however, been directed toward comparisons between DEA and other competing efficiency analysis models. This paper undertakes a comparison of the DEA, the deterministic parametric (DFA), and the stochastic frontier (SFA) models. Efficiency comparisons across models in the above categories are done based on 15 Colombian cement plants observed during 1968–1988.     

Combining PCA With DEA to Improve the Evaluation of Project Performance Data: A Taiwanese Bureau of Energy Case Study

This article proposes a new method of project performance evaluation, by which project performance data can be better understood. This article combines principal component analysis (PCA) and data envelopment analysis (DEA) to enhance the efficiency of decision‐making units more accurately. The data used was based on energy projects promoted by the Bureau of Energy at the Ministry of Economic Affairs in Taiwan. The results of this article show that by combining PCA and DEA in evaluating the performance of energy projects, there was an improved evaluation of projects over simply using DEA data alone.     

基于DEA模型的企业员工绩效考评研究

利用数据包络分析(DEA)方法对企业员工进行绩效考评,目的是真实、客观地反映员工的工作表现。本文提出运用只有输出(输入)和二次相对有效性的DEA模型对企业员工进行静态与动态的绩效考评,并结合实例进行实证研究,为人力资源管理提供了有价值的方法。     

A resilience-based model for performance evaluation of information systems: the case of a gas company

Information systems (IS) are strongly influenced by changes in new technology and should react swiftly in response to external conditions. Resilience engineering is a new method that can enable these systems to absorb changes. In this study, a new framework is presented for performance evaluation of IS that includes DeLone and McLean’s factors of success in addition to resilience. Hence, this study is an attempt to evaluate the impact of resilience on IS by the proposed model in Iranian Gas Engineering and Development Company via the data obtained from questionnaires and Fuzzy Data Envelopment Analysis (FDEA) approach. First, FDEA model with α-cut = 0.05 was identified as the most suitable model to this application by performing all Banker, Charnes and Cooper and Charnes, Cooper and Rhodes models of and FDEA and selecting the appropriate model based on maximum mean efficiency. Then, the factors were ranked based on the results of sensitivity analysis, which showed resilience had a significantly higher impact on the proposed model relative to other factors. The results of this study were then verified by conducting the related ANOVA test. This is the first study that examines the impact of resilience on IS by statistical and mathematical approaches.     

Neoclassical Growth Accounting and Frontier Analysis: A Synthesis

The standard measure of productivity growth is the Solow residual. Its evaluation requires data on factor input shares or prices. Since these prices are presumed to match factor productivities, the standard procedure amounts to accepting at face value what is supposed to be measured. In this paper we estimate total factor productivity growth without recourse to data on factor input prices. Factor productivities are defined as Lagrange multipliers to the program that maximizes the level of domestic final demand. The consequent measure of total factor productivity is shown to encompass not only the Solow residual, but also the efficiency change of frontier analysis and the hitherto slippery terms-of-trade effect. Using input-output tables from 1962 to 1991 we show that the source of Canadian productivity growth has shifted from technical change to terms-of-trade effects.     

A quantitative study of financing efficiency of low‐carbon companies: A three‐stage data envelopment analysis

This study set out to evaluate the financing efficiency of low‐carbon companies. Applying a three‐stage data envelopment analysis with the data from 85 listed companies in China's low‐carbon industries over the period 2011 to 2017, this study has found that the overall financing efficiency of low‐carbon companies was relatively high, and the pure technical efficiency was quite steady over the period. The overall financing efficiency of these low‐carbon companies on average tended to change with the scale efficiency. This study has also shown that the scale efficiency was the main constraint influencing the financing efficiency of low‐carbon companies in China over the period. Our results are robust and have significant implications for policy makers and corporate managers.     

A Generalized Goals-achievement Model in Data Envelopment Analysis: an Application to Efficiency Improvement in Local Government Finance in Japan

Abstract

Data envelopment analysis (DEA) has become an established benchmark tool in efficiency strategies in both the public and the private sectors. The aim of this paper is to present and apply a newly developed, emerging from a blend of a Distance Friction Minimization (DFM) and a Goals Achievements (GA), model in DEA. The above-mentioned DFM-GA model is illustrated empirically by using a data set of efficiency indicators for cities in Hokkaido prefecture in Japan. In summary, this paper presents a practical policy instrument that may contribute to efficient decision making of both public and private actors.

Modèle généralisé de réalisation des objectifs dans l'analyse par la méthode d'enveloppe: application dans l'augmentation du rendement dans les finances des administrations régionales au Japon

RÉSUMÉ?La méthode d'enveloppe [data envelopment analysis (DEA)] est un étalon bien établi pour les stratégies d'efficacité tant dans le secteur public que dans le secteur privé. L'objectif de la présente communication est de présenter et d'appliquer un modèle de méthode d'enveloppe nouveau et ajusté. Le modèle DFM-GA susmentionné est illustré de façon empirique au moyen d'un ensemble d'indicateurs d'efficacité pour des villes de la préfecture d'Hokkaido, au Japon. En résumé, la présente communication présente un instrument de politique pratique qui pourrait contribuer à des prises de décision efficaces par des acteurs tant publics que privés.

Un modelo generalizado de logro de objetivos en el análisis envolvente de datos: aplicación a la mejora de la eficiencia en las finanzas de gobiernos locales de Japón

RÉSUMÉN?El análisis envolvente de datos (DEA) se ha convertido en una herramienta de referencia establecida en las estrategias de eficiencia, tanto en el sector público como privado. El objetivo de este trabajo es presentar y aplicar un modelo DEA ajustado y recién desarrollado. El modelo DFM-GA mencionado anteriormente se ilustra empíricamente utilizando un conjunto de datos de indicadores de eficiencia relacionados con ciudades de la prefectura de Hokkaido, Japón. En resumen, este trabajo presenta un instrumento práctico de política que puede contribuir a una toma de decisiones eficiente tanto de actores públicos como privados.