Abstract Book Finaldeaconference.com/dea2014/downloads/iDEA-2014-Abstract...Sadia Farooq 131 47...

Speaker Presentation No Paper#

1 290Abolfazl Keshvari 2 22Valentin Zelenyuk

3 150Gokulananda Patel 4 81Ali Ebrahimnejad

5 123Zulkufly Ramly 6 233Azmah Othman

7 69Abdel Latef Anouze 8 78Shahsuzan Zakaria

9 315Dong Liang 10 97Ana Camanho

11 228Amar Oukil 12 59Arif Watto

13 147Nur Azlina Abd Aziz 14 25Sonia Valeria Aviles‐Sacoto

15 332Wan Rohaida Wan Husain 16 67Sourour Ramzi

17 125Ting Yu Zhou 18 162Agathe Stenger

19 55Mark Tapar 20 230Valter Boljuncic

21 246Dariush Khezrimotlagh 22 259Ehsan Momeni

23 77Guo‐liang Yang 24 115Konstantinos Triantis

25 189Song Han 26 229Wenbin Liu

27 24Luka Neralic 28 148Ming‐Kuang Shyu

29 197Ozlem Olgu Akdeniz 30 48Shamaila Ishaq

31 8Ana Maria Reyna Bernal 32 249Ihsan Alp

33 262Kok Fong See 34 267Lei Chen

35 38Foroogh Shadman 36 144Ching Cheng Lu

37 30Ali Alshayea 38 310Zalina Zahid

39 57Mad Ithnin Salleh 40 136Rebecca Owusu

41 143Ayhan Golcukcu 42 177Dilini Hemachandra

43 58Amin Mugera 44 151Sun Shinn

45 161Kazim Baris Atici 46 79Subhash Ray

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I


47 88Vladimir E. Krivonozhko 48 119Francisco Vargas Serrano

49 130Hirofumi Fukuyama 50 237Necmi Avkiran

51 244Sheng Ang 52 117Hung Nguyen Viet

53 139Mei‐ying Huang 54 172Sunil Kumar

55 204Abul Hassan 56 110Amin Mirzapour

57 252Shiyi Chen 58 26Rossazana Ab Rahim

59 327Behrouz Arabi 60 157Giannis Karagiannis

61 19David Mayston 62 42Moira Scerri

63 86Antonio Peyrache 64 165Dipyaman Pal

65 232Jacinta Kanini Lemba 66 308Gazi Md Nurul Islam

67 90Manoj Rajakaruna Mudalige 68 255Sahubar Ali Mohamed Nadhar Kh

69 302Joshua Ignatius 70 46Ming‐Miin Yu

71 83Sanjeet Singh 72 140Tsu‐Tan Fu

73 236Jehan Saleh Ahmed 74 271Alireza Fallahpour

75 89Mozhgan Mansouri Kaleibar 76 199Hazriah Hasan

77 264Md. Azizul Baten Baten 78 34Minh Hanh Le

79 62Shu‐Chin Huang 80 12Mohammad Ali Nasseri Jahromi

81 137Laure Latruffe 82 243Luke Nsugnana‐ang Abatania

83 60Mohammad Khoveyni 84 171Arpita Ghose

85 109Ahmad Battal 86 40Sandeep Kumar Mogha

87 56Md. Abul Kalam Azad 88 135Ole‐Petter Kordahl

89 206Mani Yogeswari 90 258Lu Ming‐Xiang

91 289Abdullahi Iliyasu 92 64Engku Elini Engku Ariff

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93 231Jaber Alyami 94 329Presenter:

95 205Jeronimo G. R. Monteiro 96 279Yasser Jafari

97 49Victor Podinovski 98 85Vsevolod Petrushchenko

99 94Emine Demet Mecit 100 23Fekri Ali Shawtari

101 253Moussa Larbani 102 50Shazida Jan Mohd Khan

103 9Sebastian Lozano 104 142Mohsen Afsharian

105 226Siti Nurzahira Che Tahrim 106 322Dhimant Ganatra

107 72Nurhan Davutyan 108 181Maria Isabel Pedro

109 293Norbaizura Kamarudin 110 51Charlotte Pointon

111 96Minzhe Du 112 164Jiyoung Kong

113 167Chandrima Chakraborty 114 250Maria Portela

115 53Varun Mahajan 116 15Tomas Balezentis

117 251Francisco Daladier Marques Juni 118 316Olajide Abraham Ajao

119 71Yann Desjeux 120 113Alireza Hajihosseini

121 195Reza Kia 122 280Walter Briec

123 87Vladimir E. Krivonozhko 124 116John Watson

125 191Hasan Bal 126 20Plinio Oliveira

127 330Susila Munisamy 128 126Noor Asiah Ramli

129 14Ning Zhu 130 328Indra Widiarto

131 47Sadia Farooq 132 127Cesar L. Navarro‐Chávez

133 145Muhammad Asraf Abdullah 134 247Parviz Mohsenpour

135 266Barbara T.H. Yen 136 282Ruzanita Mat Rani

137 299Kamil Çelik 138 84Yanmin Shao

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139 138Yahuza Kassim 140 61Robabeh Eslami

141 256 Razamin Ramli 142 294Somayeh Shafaghizadeh

143 169Adel Hatamimarbini 144 118Sangmok Kang Kang

145 180Luiza Badin 146 260Hilal Atasoy

147 99Isabel Horta 148 296Patcharaporn Neammanee

149 300Deepankar Sinha 150 324Nyankomo Marwa

151 80Carolyn Thi Thanh Dung Tran 152 269Nabil Channouf

153 272Sallahuddin Hassan 154 93Md. Abul Kalam Azad

155 184Erhan Berk 156 182Carlos Ernani Fries

157 238Lawrence Lan 158 261Kasypi Mokhtar

159 27Jeronimo G. R. Monteiro 160 242Wan Anisabanum Salleh

161 305Anastasia Klimova 162 82Tommi Kauppinen

163 98Hasan Bal 164 131Rosmiza Rosly

165 292Halida Mohd Noor 166 298Qing Li

167 129Fauzi Zainir

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IV

12th International Conference on Data Envelopment Analysis,April 14‐17, 2014 Abstract Book

Presentation No

1

Paper#

290

Authors:

Timo Kuosmanen, Abolfazl Keshvari and Reza Kazemi Matin

Speaker

Abolfazl Keshvari

Title:

Discrete and integer valued inputs and outputs in data envelopment analysis

Track: Theory and Modeling

Date Time: SESSION 1 (Parallel)Tuesday April 15th11:00‐12:30

Room, Chair: (1) IPPP Auditorium, Chairman: Valentin Zelenyuk

Abstract: DEA does not assume any particular functional form for the frontier, but relies on the axioms of production theory, most importantly, free disposability, convexity, and some specification of returns to scale. These standard axioms implicitly assume continuous, real‐valued inputs and outputs, and thus cannot be applied on the integer valued DEA directly. The axiomatic foundation and the MILP formulation of integer DEA have caused serious confusion since the original works by Lozano and Villa (2006, 2007). Kuosmanen and Kazemi Matin (2009) and Kazemi Matin and Kuosmanen (2009) introduced the axioms of integer DEA and addressed the theoretical justification for integer DEA. Recently, a series of papers have contributed to further confusion by discrediting the contributions of Kuosmanen and Kazemi Matin and disregarding both the importance of a sound axiomatic foundation and rigorous mathematical formulations. In this paper we re‐examine the axioms and MILP formulations of integer DEA, elaborating some aspects that have apparently caused confusion in the literature. Emphasizing the importance of the axiomatic foundation, we demonstrate that Lozano and Villa (2006) MILP formulation in fact fails to satisfy the axiom of natural divisibility. This implies that Lozano and Villa (2006) MILP formulation is inconsistent with the integer DEA technology they developed. Second, we critically examine the extensions and applications of integer DEA, suggesting some interesting avenues for future research.

Page 1 of 172


Presentation No

2

Paper#

22

Authors:

Andreas Mayer and Valentin Zelenyuk

Speaker

Valentin Zelenyuk

Title:

Aggregation of Hicks‐Moorsteen Productivity Indexes: Theory and DEA Application




Abstract: In this paper we consider the problem of aggregation of Hicks‐Moorsteen productivity indexes. Such measures are of direct relevance to firms or countries who have merged (making full reallocation possible), allowing them to measure potential productivity gains and how these have been realised (or not) over time. The aggregate indexes are derived in a manner which is justified by economic theory, consistent with previous aggregation results, and maintains analogous decompositions to the original measures. These aggregate Hicks‐Moorsteen productivity indexes allow researchers to consider the change in group productivity over time, with and without allowing full reallocation, and with and without price effects. We illustrate these indexes with a DEA‐based application to the productivity of countries, demonstrating the difference between the group index and a simple average.

Page 2 of 172


Presentation No

3

Paper#

150

Authors:

Amarnath Bose and Gokulananda Patel

Speaker

Gokulananda Patel

Title:

Performance Improvement ‐ time‐stepped benchmarking based on Data Envelopment Analysis




Abstract: In this paper we use Data Envelopment Analysis (DEA) to benchmark under performing Decision Making Units (DMUs) with a focus on stage‐wise performance improvement through emulation of best practices. For the purpose of benchmarking, an inefficient DMU is placed in a cluster of DMUs that are similar in terms of inputs. The relative homogeneity of inputs makes the process of best‐practice emulation more feasible for an inefficient DMU. DMUs that are “efficient” within their home cluster while being globally inefficient benchmark themselves against DMUs in the nearest non‐home or away cluster. Proceeding in this manner in discrete time steps, the DMUs improve their levels of efficiency. The process of re‐clustering and successive benchmarking continues as long as there is an improvement in the efficiency of DMUs.

Page 3 of 172


Presentation No

4

Paper#

81

Authors:

Ali Ebrahimnejad and Madjid Tavana

Speaker

Ali Ebrahimnejad

Title:

A new link between MOLP and DEA models in the present of undesirable outputs in order to finding target units




Abstract: The conventional DEA models generally do not consider the DM’s preference structure or value judgments. However, various methods have been proposed to incorporate the DM's preference information in DEA. However these models are not applicable to performance evaluation problems with undesirable outputs. In this paper, we establish a new link between multi objective linear programming (MOLP) problem and DEA model with undesirable outputs in order to use the interactive methods in MOLP to locate the most preferred solution on the efficient frontier for the target setting and resource allocation. We present an example to demonstrate the applicability of the proposed method and exhibit the efficacy of the procedures and algorithms.

Page 4 of 172


Presentation No

5

Paper#

123

Authors:

Zulkufly Ramly, Sok Gee Chan, Noor Sharoja Sapiei and Mohd Zulkhairi Mustapha

Speaker

Zulkufly Ramly

Title:

Model of Good Corporate Governance: A Study of Commercial Banks in ASEAN5

Track: Banking and Finance


Room, Chair: (2) IPPP Seminar Room 1, Chairman: Abdel Latef Anouze

Abstract: Due to the increasing roles of bank governance after the Global Financial Crisis, Basel III gives great emphasis on the role of the board of directors in ensuring a long‐term survivability of the banking industry. This study aims to examine the relationship between board structures, board monitoring and board diversity towards the efficiency of selected commercial banks in ASEAN5 from 1998 to 2012. This study focuses on the directors’ characteristics and diversity, which are essential elements of a sound corporate governance framework. Ultimately, this study seeks to develop a model of corporate governance that can contribute to a superior banks’ performance in this region. The Data Envelopment Analysis (DEA) model will be employed to estimate the profit efficiency scores of the selected commercial banks. The profit efficiency score is a better measure of bank’s performance than financial ratios because it takes into consideration the utilization of inputs in achieving a given level of profit. Besides, this study will employ panel data estimation based on Tobit Regression and Structural Equation Modeling to investigate the relationship between board structures, monitoring and diversity towards the efficiency of commercial banks in ASEAN5.

Page 5 of 172


Presentation No

6

Paper#

233

Authors:

Azmah Othman, Rosita Hamdan and Fatimah Kari

Speaker

Azmah Othman

Title:

Estimating the Efficiency of Bank Kerjasama Rakyat Malaysia Berhad and Conventional Banks in Malaysia




Abstract: Bank Kerjasama Rakyat Malaysia Berhad (Bank Rakyat) is a co‐operative bank that has been the backbone of the Malaysian co‐operative movement. This paper evaluates Bank Rakyat and nine other conventional banks in Malaysia over the period 2006‐2010 using Data Envelopment Analysis (DEA) and Malmquist total factor productivity index (MPI) to estimate and compare the individual bank efficiency and productivity changes within this period. The results from this analysis indicate that total factor productivity (TFP) had increased in six out of the ten banks studied. Bank Rakyat was found to be among top five banks. In the second stage analysis using Tobit regression, loan intensity ratio was found to be statistically significant in its effects on total factor productivity (TFP). Banks’ asset and status (whether co‐operative or non‐co‐operative) were also statistically significant in determining the technical efficiency change (TEFFCH). GDP per capita, unemployment and export are significant in influencing the increased in the banks technological change.

Page 6 of 172


Presentation No

7

Paper#

69

Authors:

Abdel Latef Anouze

Speaker

Abdel Latef Anouze

Title:

The Impact of Corruption, Transparency & Financial Performance on Economic Development: An international Exploratory Study




Abstract: While previous economic development studies take into account the impact of financial performance economic growth, the role of corruption as one of the socio ‐economic factor remains yet to be assessed. Unlike the previously published research, this study integrates data envelopment analysis with structural equation modelling to explore and study the proposed relationships between economic development, financial performance, and country transparency and corruption. In addition, the study explores if there is any direct and indirect relationship between the proposed model constructs. Data envelopment analysis, which is a linear programming methodology used to measure the performance of financial sector. Basically, the performance of financial sector of each country is calculated by measuring the distance of the country to the efficient frontier. Those units that lie on the frontier surface are recognized as efficient, and those that do not, as inefficient. The set of efficient countries of the efficient frontier surface is the internal “best practice” benchmark which is often used to guide and project improvement for the other inefficient countries. On the other hand, the structural equation modelling, which is a statistical technique is used to test and estimate causal relationships between financial performance, country transparency, corruption and economic development.

Page 7 of 172


Presentation No

8

Paper#

78

Authors:

Shahsuzan Zakaria

Speaker

Shahsuzan Zakaria

Title:

A New Framework of Banking Risk Management Efficiency Analysis: An integrated approach based on Hedge Accounting and Data Envelopment Analysis (DEA)




Abstract: This study integrates the Data Envelopment Analysis (DEA) approach with a hedge effectiveness test method based on the concept of hedge accounting to provide a comprehensive analysis of commercial banks’ derivatives usage for measuring and analyzing risk management efficiency. The hedge effectiveness test method is an accounting method which is employed to analyse derivatives used as hedging instruments in order to measure their effectiveness. In choosing a hedge effectiveness tests, the dollar‐offset ratio shares a similar fundamental approach to DEA. The dollar‐offset ratio assesses a bank’s risk management efficiency based on the derivative instruments used (hedging instruments) and items being hedged (hedged items). However, this ratio has an inherent weakness in that it uses a simple ratio concept which is unable to assign and align mathematical weights to all elements used in the analysis, thereby highlighting inbuilt accounting risks. This paper uses the DEA (a mathematical programming technique) approach in order to eliminate this weakness and provides insight into the quantitative measurement of banks’ risk management and efficiency. Applying a hedging instrument as an input and the hedged items as an output variable, the simple ratio concept applied as a dollar‐offset ratio will be improved using a DEA approach. Using this concept, the efficiency of risk management of four Malaysian (developing financial market) and four Australian (developed financial market) commercial banks have been evaluated, based on reports covering the period 2007‐2012. Both countries are considered due to their high competitiveness in promoting the usage of derivatives in their financial markets. Through an integrated approach using DEA and hedge effectiveness ratio analysis, a new framework in measuring banks’ risk management efficiency has been created. In this study, the empirical results of efficiency measurement indicate that the derivative instrument used is able to provide significant effects on the hedged items that directly influence risk management efficiency in banks. This integration contributes to strengthening the existing dollar‐offset method of risk management accounting by eliminating the weakness of the simple ratio concept that is generally applied. The results suggest that DEA is a beneficial complement to the hedge effectiveness technique generally used in improving bank’s risk management, thus providing a rigorous model to analyse accounting risk. However, as all eight banks were operating in a region of increasing returns to scale (irs), their operations were deemed to be too small, indicating that their hedging size should be expanded. In the unique context of measuring risk management efficiency in banks by using a derivative instrument, this study sheds new light on banks’ risk management efficiency frameworks and hedge accounting risk policies through eliminating the dollar‐offset ratio weakness and introducing the DEA approach.

Page 8 of 172


Presentation No

9

Paper#

315

Authors:

Lei Chen, Dong Liang and Zinnia Mukherjee

Speaker

Dong Liang

Title:

Measuring the Spatial Effect of Hypoxia on Harvesting Capacity ‐ A Data Envelopment Analysis Approach

Track: Agricultural


Room, Chair: (3) IPPP Seminar Room 2, Chairman: Ana Camanho

Abstract: Marine hypoxia is a seasonal phenomenon that can adversely affect some sections of an aquatic system during specific months each year. Among other factors, continuous disposal of nitrogenous waste materials by upstream firms create a mosaic of hypoxic water zones in the system. Hypoxia has been shown to have adverse effects on marine populations through increased mortality, decreased growth and reduced reproduction. These negative effects are transferred to commercial fisheries through reduced fish stock. In the United States, every summer, the western part of Long Island Sound (LIS) is affected by moderate to severe hypoxic conditions. The sound is home to a number of New England fisheries where fishers from New York, Connecticut and Rhode Island fish every year. Lobster is the most valuable commercial species harvest all parts of the sound. This paper uses data envelopment analysis to examine the spatial effects of hypoxia on lobster fishing capacity across the three adjacent LIS fishing zones –western, central and eastern LIS. In the output‐oriented DEA model, number of fishermen and days fished are regarded as two inputs, whereas lobster harvest is considered the single output. The result shows that the average efficiency score is 0.34 in peak season (June to August), and 0.19 in off‐peak months. A second‐stage regression indicates that the efficiency of lobster fishing industry is positively related to the level of dissolved oxygen in the sea water, but negatively related to salinity of the water.

Page 9 of 172


Presentation No

10

Paper#

97

Authors:

Ana Camanho, Manuela Oliveira and Miguel Gaspar

Speaker

Ana Camanho

Title:

Exploring seasonality effects on the performance of artisanal fisheries

Track: Agricultural



Abstract: Several fisheries across the world are managed by a quota regime. These quotas can be set yearly, monthly, weekly or daily. For some fish species demand seasonality may occur, which should be taken into consideration in the establishment of quotas. This would allow fishermen to catch more fish in times of the year with higher demand in detriment of periods with lower demand. In the framework of the PRESPO project it was investigated the existence of demand seasonality for bivalves from the artisanal dredge fleet operating along the coast of Portugal. The analysis of fleets’ revenue efficiency was assessed using Data Envelopment Analysis, and the monthly seasonality effects on revenue efficiency were tested using truncated regression. The results revealed that in the South coast there is a strong demand in the summer whereas in the western coast demand increases during Christmas and New Year festivities. Since this fishery is managed by weekly quotas, it is proposed their redistribution in order to account for periods of higher demand, increasing in this way the profitability of the vessels. The approach developed to explore seasonality elements may be transferable to other industries or applied to other fisheries worldwide, and illustrates how DEA assessments can contribute to enhance the performance of quota managed fisheries.

Page 10 of 172


Presentation No

11

Paper#

228

Authors:

Amar Oukil and Slim Zekri

Speaker

Amar Oukil

Title:

A three‐stage analytical framework for the evaluation of farming efficiency

Track: Agricultural



Abstract: In this study, we use a three‐stage analytical framework to analyse the productive efficiency of farms in the Sultanate of Oman. The data used are based on a survey of 60 randomly selected farm households. First, Data envelopment analysis (DEA) is employed to estimate the efficiency of the farms. The results showed an average technical efficiency of 0.42 for the sample farms, ranging from 0.12 to 1.00. At a subsequent stage, the efficiency scores were regressed using a Tobit regression model on a set of selected contextual variables. Tobit estimation failed to achieve statistical significance allowing a clear discrimination of the sources of inefficiency. A Cobb‐Douglas production function was assumed, and analysis of the results helped to identify the specific operating factors affecting the variations in farming efficiency.

Page 11 of 172


Presentation No

12

Paper#

59

Authors:

Amin Mugera and Arif Watto

Speaker

Arif Watto

Title:

Benchmarking Energy Efficient Agricultural Farms in Pakistan: The DEA Sub‐vector Approach

Track: Agricultural



Abstract: Recent energy crises have raised concerns about energy use efficiency and conservation in Pakistan. In particular, irrigation is usually the major user of energy on most farms that depend on groundwater extracted via tube‐wells. To keep the cost of production low, the government has intervened in the market by subsidizing the cost of electricity. In this paper, we analysed the energy use efficiency of 100 randomly selected cotton farms in Punjabi Province using an input‐specific sub‐vector data envelopment analysis (DEA) approach. We find the energy use efficiency to be about 60%, slightly below the overall technical efficiency of about 87%. Using second stage bootstrap truncated regression, we find that energy use efficiency is statistically and positively related to access to canal water and land ownership and negatively related to water table depth. The implication of our results is that improving access to canal water may significantly improve energy use efficiency by a reduction in current use by about 40% while still maintaining current level of production. Reduced energy cost can also lead to improved water use efficiency.

Page 12 of 172


Presentation No

13

Paper#

147

Authors:

Nur Azlina Abd Aziz

Speaker

Nur Azlina Abd Aziz

Title:

Evaluating Efficiency and Productivity of Academic Departments

Track: Education and Public Sector


Room, Chair: (4) IPPP Video Conference Room, Chairman: Emmanuel Thanassoulis

Abstract: In Malaysia, some public universities have been granted a full autonomous status which means they have greater flexibility in managing their own staff, administrative and financial matters. However, autonomy comes with bigger accountability. This has driven the university top management to seek effective strategies and explore the means of measuring the relative efficiency and productivity of the academic departments within the institution. This study applies Data Envelopment Analysis (DEA) and Malmquist Productivity Index (MPI) to measure performance of twenty two academic departments of a Malaysian public university during the period 2008‐2011. Three inputs used in this analysis are the number full‐time equivalent staff, operating expenses, enrollment of undergraduates and postgraduates while the three outputs are the number of undergraduate and postgraduate degrees awarded, total amount of research grants and number of academic publications by faculty members. The experts’ subjective judgement on the importance of inputs and outputs is incorporated in these methods in order to obtain more valid results. The results obtained could help the university administrators to plan strategies for each academic department on how to improve its performance.

Page 13 of 172


Presentation No

14

Paper#

25

Authors:

Sonia Avilés‐Sacoto, Wade Cook and David Güemes‐Castorena

Speaker

Sonia Valeria Aviles‐Sacoto

Title:

Competitiveness Among Higher Education Institutions: A Two‐Stage Cobb‐Douglas Model for Efficiency Measurement of Schools of Business




Abstract: In this paper we present a methodology for evaluating competing organizations, and for identifying best practices among those organizations. We focus attention specifically on competitiveness in the context of a set of schools of business for the purpose of identifying those that appear to be most efficient relative to their peers. One of the most widely recognized efficiency measurement methodologies is data envelopment analysis (DEA). DEA literature has witnessed the expansion of the original concept to encompass a wide range of theoretical and applied research areas, with one such area being network DEA, and in particular two‐stage DEA. This latter, and its extensions to multi‐stage situations, has been particularly influential in such settings as supply chain management. In the conventional two‐stage serial model it is assumed that in each stage, efficiency will be defined by the standard ratio of weighted outputs to inputs or inputs to outputs, depending on whether an input or output orientation is chosen. In terms of the model used, we develop a two‐stage approach where at each stage we define efficiency in terms of a Cobb‐Douglas function. This serves two important purposes. First, since the data in this particular setting appears in the form of percentages or ratings, a geometric mean (on which the Cobb‐Douglas function is based) might be deemed as more appropriate than the arithmetic mean concept at the center of the conventional model. Second, unlike some of the previous models that define the aggregate efficiency of the process as the simple product of the scores for the two stages, the Cobb‐Douglas structure permits one to define aggregate efficiency as a weighted product of those scores. This permits one to place greater emphasis on one stage versus the other, hence allowing for a sensitivity analysis on the impact of the “stage weights” on the aggregate score, and on the individual scores that make up that aggregate.

Page 14 of 172


Presentation No

15

Paper#

332

Authors:

Wan Rohaida Wan Husain

Speaker

Wan Rohaida Wan Husain

Title:

Malaysia From PSPTN Perspective Using Data Envelopment Analysis




Abstract: Objective of the study is to look at the efficiency of Malaysia in terms of its effectiveness in achieving the national policies on higher education as stipulated by a blueprint called Pelan Strategik Pengajian Tinggi Negara (PSPTN). Accordingly, 9 variables have been selected in such a way that they capture important issues addressed by the 5 pillars of PSPTN namely Research & Innovation; Enculturation of Lifelong Learning; Improving the Quality of Teaching & Learning; Intensifying Internationalization; and Widening Access and Increasing Equity. 43 countries have been analysed and short listed based on availability of data on the chosen variables. Malaysia is identified as 92.6% efficient using variable return to scale DEA model. It is above the average performance of 90.23%. Among the 24 countries that are identified as fully efficient, only Indonesia, Bulgaria and Slovenia are identified as strong efficient peers for Malaysia. Discussion focuses on the practice of those peers.

Page 15 of 172


Presentation No

16

Paper#

67

Authors:

Ramzi Sourour, Antonio Afonso and Mohamed Ayadi

Speaker

Sourour Ramzi

Title:

Assessing productivity performance of basic and secondary education in Tunisia: a Malmquist analysis




Abstract: We analyze the productivity changes in basic and secondary education for 24 governorates in Tunisia over the period 2004‐2008. In methodological term, we employ the Malmquist index, to estimate changes in total factor productivity which can be decomposed into two main components namely, technological change and technical efficiency change. We use four input variables (number of teacher per students, number of classes per students, number of schools per inhabitants, and expenditure in education per student) and two output variables measuring success rate of baccalaureate exam and rate of non‐doubling in the 9th year. Our results show that on average, changes in TFP growth during the period 2004‐2008 has been more linked to the changes in technology. The managerial efficiency does not have an important effect on the variation of TFP change. Generally, productivity is associated with technological innovations.

Page 16 of 172


Presentation No

17

Paper#

125

Authors:

Ting Yu Zhou, Shinn Sun and Ting Zi Chueh

Speaker

Ting Yu Zhou

Title:

Measuring the performance of Independent‐owned International Tourist Hotels in Taiwan

Track: Tourism


Room, Chair: (5) IPS Auditorium, Chairman: Sun Shinn

Abstract: The purpose of this study is to three‐fold. First, this study use data envelopment analysis (DEA) and balanced scorecard (BSC) for measuring overall performance and individual performance of 18 Taiwanese international tourist hotels that have been operated from 1997‐2012. Second, this study explores the issue of returns to scale for the hotels. Thirdly, this study utilizes cross efficiency measure (CEM) to identify best practice for each type of performance. The individual performance of the hotels is measured in terms of four BSC perspectives: financial perspective (FP), customer perspective (CP), learning and growth perspective (LGP), internal process perspective (IPP). Finally, we present some important findings and management implications.

Page 17 of 172


Presentation No

18

Paper#

162

Authors:

Agathe Stenger

Speaker

Agathe Stenger

Title:

Tourism performance of French regions

Track: Tourism



Abstract: In this paper I assess and compare the performance of French tourism regions by using the Data Envelopment Analysis (DEA). In the first stage I estimate the efficiency score of all Decision Management Units (regions). In the second stage I introduce the Malmquist productivity index in order to decompose productivity changes between years. An interpretation of technical efficiency changes is proposed. Then some recommendations are suggested in allocation of marketing promotion.

Page 18 of 172


Presentation No

19

Paper#

55

Authors:

Mark Tapar and Fernando Trinidad

Speaker

Mark Tapar

Title:

Linking Technical Efficiency with Guest Satisfaction: Evidence from Resort‐Hotels in Boracay, Philippines

Track: Tourism



Abstract: This is a first attempt to utilize DEA in measuring technical efficiency of ten resort‐hotels in Boracay, Philippines and link their efficiency scores with guest satisfaction from hotel survey. To provide different perspectives on technical efficiency, we devised four financial models that represent two major categories of financial variables such as asset/equity and expense. These models used inputs such as fixed assets, current assets, stockholders equity, cost of service and general and administrative expense. Outputs are revenue and operating income. Input oriented variable return to scale DEA was used to determine efficiency in four models. Empirical results show that on the average, the resort‐hotels are operating at inefficient frontier or TE score less than 1.00. Discovery Shore is a consistent efficiency performer with 1.00 TE in the asset/equity model. While this study supports the existing literature that efficiency levels among DMUs vary on the use of input and output combination, we cannot establish a strong positive connection between efficiency and guest satisfaction. This is a confirmation of previous studies conducted on this field.

Page 19 of 172


Presentation No

20

Paper#

230

Authors:

Valter Boljunčić

Speaker

Valter Boljuncic

Title:

Improving efficiency of efficient and inefficient DMU



Room, Chair: (6) IPPP Auditorium, Chairman: Susila Munisamy

Abstract: One of the key topic in DEA is efficiency evaluation of DMU. If DMU is inefficient then efficient reference point on border of production set is obtained. The reference point is obtained as far as possible from the DMU under evaluation. In the presentation we concentrate on different projection points for the inefficient DMU, for example in certain direction. This is done using parametric programming in order to obtain all the facets that dominates inefficient DMU. Then certain part of this frontier is consider for the possible projection points. Also, we are interested in improving efficiency of allready efficient DMU. This is also done obtaining facets where efficient DMU is, and then moving outward from production set.

Page 20 of 172


Presentation No

21

Paper#

246

Authors:

Dariush Khezrimotlagh

Speaker

Dariush Khezrimotlagh

Title:

How to Select an Epsilon to Apply Kourosh and Arash Model in Data Envelopment Analysis




Abstract: This paper demonstrates how an appropriate epsilon value can be selected when Kourosh and Arash Model (KAM) is applied in order to estimate production frontiers as well as simultaneously rank and benchmark Decision Making Units (DMUs). KAM was recently proposed to improve the capabilities of Data Envelopment Analysis (DEA) in order to measure the performance evaluation of homogenous DMUs inclusive real and integer values. The paper also illustrates that the selection of epsilon is logically allowed even if the DMUs’ data are exact. A non‐linear programming model is also proposed to find the optimum value of epsilons while a DMU is under evaluation.

Page 21 of 172


Presentation No

22

Paper#

259

Authors:

Ehsan Momeni and Fatemeh Abbasi

Speaker

Ehsan Momeni

Title:

A non‐radial data envelopment analysis model for weight generation in the analytic hierarchy process.




Abstract: Recently, numerous studies have been performed in the context of using the data envelopment analysis (DEA) for weight derivation in the analytic hierarchy process. One of these models is DEAHP which have some drawbacks. The main drawback is that it only produces true weights for completely consistent pairwise comparison matrices, and there is no guarantee for generating logical and intuitive weights for other matrices with satisfactory consistency ratio. In this article, a non‐radial DEA model is proposed to produce local weights for pairwise comparison matrices and it will be proved that the proposed model not only does produce true weights for completely consistent pairwise comparison matrices, but also generates rational weights for matrices with satisfactory consistency ratio. Furthermore, it would be proved that the model prevents the rank reversal problem. Numerical examples are provided throughout the paper to examine the efficiency and advantages of using the proposed model for weight generation.

Page 22 of 172


Presentation No

23

Paper#

77

Authors:

Guoliang Yang

Speaker

Guo‐liang Yang

Title:

DEA model without explicit inputs with majority preference




Abstract: Data Envelopment Analysis (DEA) is a quantitative method to evaluate relative efficiency using input and output data. However, in many applications, there are no explicit input data available. In this case, we should consider DEA models without explicit inputs (DEA‐WEI). Pareto preference is implied in existing DEA‐WEI models. Majority preference is different from Pareto preference and is a common preference in real applications. How to measure performances and rank DMUs under major order preference is an interesting issue to study. This paper aims to investigate the DEA‐WEI model with major order preference. Two illustrative example to show the features of the proposed DEA‐WEI with majority preference are proposed, including an example for ranking 5 DMUs with 5 outputs and a case study on publication assessment of 24 countries/territories.

Page 23 of 172


Presentation No

24

Paper#

115

Authors:

Oscar Herrera Restrepo and Kostas Triantis

Speaker

Konstantinos Triantis

Title:

Multi‐perspective dynamic network performance measurement for evacuation planning: A dynamic network‐DEA approach

Track: Network and dynamic DEA


Room, Chair: (7) IPPP Seminar Room 1, Chairman: Wenbin Liu

Abstract: This paper explores and expands on a dynamic network performance measurement approach (Tone and Tsutsui, 2013) for evacuation planning. Two different perspectives are studied, i.e., the view of the transportation agency and household. These views are linked through intermediate inputs/outputs generated by the underlying evacuation processes for each perspective. The main theoretical contributions of the proposed evaluation approach are: i) the conceptualization and definition of evacuation performance of integrated physical and social infrastructures when viewed from two stakeholder perspectives and subject to the implementation of a transportation evacuation strategy (e.g., ramp closure); ii) the exploration and presentation of new forms of abstraction of dynamic and networked relationships that exist between perspectives for disaster planning; iii) policy analysis associated with the implementation of a dynamic network DEA as it pertains to the future design of evacuation strategies. The performance measurement assessment allows for the discovery of potential performance improvement strategies for the definition of future requirements for evacuation strategy design.

Page 24 of 172


Presentation No

25

Paper#

189

Authors:

Song Han and Bo Wang

Speaker

Song Han

Title:

Stochastic Network DEA Model with Chance Constrained Programming




Abstract: There are plenty of research work on network DEA model and its application from Fare’s first work in 1996. Until now, many works study on two stage network DEA model, such as Kao and Huwang (2008, 2009), Lewis and Sexton (2003), Tone (2009), and Wei, Yan, and Pang (2011). They all try to open the black box. But these model are all dealing with normal determinate data, they did not take randomness, such as measure error and financial unmanageable risk. In this paper, we constructed chance constrained WYP model which overcame this weak point but, at the same time, remained the merit of network DEA. First, we introduced the sequential chance constrained WYP model, and showed the characters of optimal solution. Then we gave the strong assumption under which we can assure the non‐negativity of the coefficient of CCWYP. As a result, we transformed the model into its deterministic linear equivalence model. And we discussed the structure of the solution of the linear programming. Finally, we focused on Chinese banking efficiency using the data 2011 basing on our model.

Page 25 of 172


Presentation No

26

Paper#

229

Authors:

Wenbin Liu, Gl Yang and Bz Zhou

Speaker

Wenbin Liu

Title:

Undesirable input‐ouputs in two stage DEA models




Abstract: Data envelopment analysis (DEA) is a non‐parametric approach for measuring the relative efficiencies of peer decision making units (DMUs). Many studies examined the efficiencies of two‐stage systems, where all the outputs from the first stage are the only inputs to the second stage. However, the existing studies for two‐stage systems are based on the assumption that the types of initial inputs, intermediate measures and final outputs have already been determined. Moreover, most studies only consider the final outputs to be undesirable. In this paper, we investigate the approaches for determining the types of initial inputs, final outputs and intermediate measures for two‐stage systems. Then the production possibility sets and the corresponding DEA models with undesirable factors are constructed. The proposed approach is applied to evaluate the efficiencies of China's listed banks in the end.

Page 26 of 172


Presentation No

27

Paper#

24

Authors:

Dubravko Hunjet, Luka Neralic and Richard E. Wendell

Speaker

Luka Neralic

Title:

An Application of Window Analysis of Data Envelopment Analysis




Abstract: This paper studies the dynamic relative efficiency of 127 selected towns in the Republic of Croatia using window analysis of Data Envelopment Analysis (DEA). The towns, represented as Decision Making Units (DMUs), are characterized into four categories according to their respective populations. Using the number of employed workers and employed assets as inputs and income as an output, window analysis is considered for each category in the period 2004 ‐ 2009 for an input‐oriented (output‐oriented) DEA model with constant (variable) returns‐to‐scale. The paper presents and analyses computational results on the dynamic relative efficiency of the towns.

Page 27 of 172


Presentation No

28

Paper#

148

Authors:

Ming‐Kuang Shyu, Jen‐Hui Lee Jen‐Hui Lee, Tsu‐Tan Fu and Jia‐Ching Juo Jia‐Ching Juo

Speaker

Ming‐Kuang Shyu

Title:

Evaluating Performance of Taiwanese Banks with Considering Risk‐based Capital Requirements: An Application of Tow‐Stage DEA Modes



Room, Chair: (8) IPPP Seminar Room 2, Chairman: Subhash Ray

Abstract: The Bank of Taiwan authority announced at the end of 2018 will complete the implement the Basel III framework. Taiwan's banking industry must adjust its risk‐weighted assets to comply with this requirement or enhance its capital adequacy ratio is a major challenge. Traditionally DEA evaluates the efficiency of banks; many researches focused on measurement of the operational side or profit side independently, but did not jointly evaluate both sides of their efficiencies, and to consider the constraint of risk‐based capital requirements. The purpose of this paper is to explore the Taiwanese banks industry and its member’s evaluation performance of operational and profit. This evaluation is defined for operation and profitability, but this operation performance will be decomposed as enterprises, retail creditor’s rights, residential property, equities securities investment, etc. More specifically, this study is to measure the overall efficiency of both sides of operation and profitability with considering the constraint of risk‐based capital requirements. We employ the two‐stage DEA models, and our data come from the Taiwanese banks of annual report from 2007 to 2012. Our finding, first, the bank with higher profitability efficiency is accompanied with more items of higher efficient loans. Second, the higher efficient banks are not always with more items of higher efficient loans. Third, we consider the constraint of risk‐based capital requirements that affects the behavioral bank of portfolios and forward to lower weight loans.

Page 28 of 172


Presentation No

29

Paper#

197

Authors:

Ozlem Olgu and Deniz Akun

Speaker

Ozlem Olgu Akdeniz

Title:

The Impact of Regulations and Supervision on Banks’ Performances in Turkey and Russia




Abstract: Following the detrimental economic and financial consequences in theaftermath of the global financıal crisis, academics and policymakers started to focus their attention on the construction of an appropriate regulatory and supervisory framework of the banking sector. The theory of market failure forms the basis for understanding financial regulation. During the 2007‐2009 global crisis, banks were engaging in excessive risk‐taking. Prudential banking regulation and supervision aim at curbing excessive risk taking of banks because engaging in excessive risky transactions is the ultimate source of instability. Hence, banking regulation is needed to deal with the failure of markets to police banks’ risky behaviours. This paper aims to identify the impact of regulations and supervision on banks’ performance focusing on two emerging market economies, Turkey and Russia. It aims at examining the way in which regulations matter for financial stability and banking performance from a law & economics perspective. A review of the theory of banking regulation, particularly as applied to emerging economies, shows that the efficiency of certain solutions regarding banking regulation is open to debate. Some of the regulations contribute to banks’ performance by preventing the risk‐taking incentive of banks and hence supporting financial stability, whereas some of them might have a detrimental effect on financial stability. Besides, banks react differently to regulation under different institutional settings. Therefore, in the context of emerging countries, whether a certain approach is efficient or not will be presented as an empirical question to which this study will try to find an answer.

Page 29 of 172


Presentation No

30

Paper#

48

Authors:

Shamaila Ishaq

Speaker

Shamaila Ishaq

Title:

A Novel Application of Data Envelopment Analysis for Efficiency Evaluation Of Banking Sector Firms in Pakistan




Abstract: A growing body of empirical literature has attempted to measure the efficiency of banking sector using Data Envelopment analysis (DEA) since 1985, however there is not a single study that has incorporated additional information such as asset quality, regulatory requirements and bank specific characteristics simultaneously into the DEA model. Efficiency evaluation with such additional information is important because without such additional information DEA models often fail to provide sufficient discrimination between the efficiency scores of Decision Making Units (DMUs) particularly, in case of small sample size. Use of weight restrictions is a traditional method to overcome this discrimination problem. In this paper a novel methodological application of production trade‐offs has been proposed for the efficiency measurement of the banking sector. Although, this new methodology is somewhat similar to weight restrictions nevertheless, this novel methodology provides a different way of incorporating additional information based on technological judgements. This proposed development enriches the standard DEA model with the additional information that not only leads to the expansion of production possibility sets (PPS) but also provides improved discrimination as compared to standard DEA models. For the empirical application of production trade‐offs, realistic trade‐offs have been identified in banking operations and incorporated in CRS and VRS DEA models Efficiency scores obtained through the application of identified trade‐offs in these models represent improved discrimination as compared to efficiency scores obtained in DEA models without such production trade‐offs. These trade‐offs are equally applicable to different banking models such as intermediation, production and profitability model.

Page 30 of 172


Presentation No

31

Paper#

8

Authors:

Ana Maria Reyna Bernal and Hugo Javier Fuentes Castro

Speaker

Ana Maria Reyna Bernal

Title:

Claims effect and profit change on the Mexican Insurance Industry




Abstract: In this research we examine the performance of the Mexican insurance sector with a production technology model and an estimation methodology adapted to the circumstances of this industry. Claims typically have been considered outputs of insurance companies, notwithstanding it contravenes the association between productivity and profitability when catastrophic events generate at the same time high scores of productivity and losses in the industry. Our analytical method differs from this approach as long as we suggest treating claims as undesirable outputs of the insurance industry taking into consideration that insured people avoid evils such as property damages, diseases or death. While insurance companies, on their side, pursue the reduction of claims frequency and cost. We extend Grifell‐Tatjè and Lovell (1999) model to measure the magnitude of claims effect on profit changes for insurance firms.

Page 31 of 172


Presentation No

32

Paper#

249

Authors:

İhsan Alp and Adnan Sözen

Speaker

Ihsan Alp

Title:

Energy Dependency performance of Turkey and European Union member states

Track: Energy, Water, Electricity


Room, Chair: (9) IPPP Video Conference Room, Chairman: Ihsan Alp

Abstract: Energy dependency (ED) is the energy import level upon which an economy relies in order to meet its energy needs. ED is calculated by dividing net imports by the sum of gross inland energy consumption plus bunkers. This study aims to obtain performance scores to evaluate of Turkey’s ED based on basic energy indicators (Model 1), sectoral energy consumption (Model 2), and primary energy production as sources (Model 3) by using data envelopment analysis. The performance evaluation of 25 European Union member states, Norway, Switzerland, Croatia, and Turkey, a candidate country, was performed in order to draw up a good energy policy in the future for Turkey. Since the data on Malta and Cyprus were incomplete, these two nations were excluded from the evaluation. The data set covers the years between 1998 and 2006 and energy indicators used in the analysis were taken from Eurostat for all countries. The Results of the analysis show that Turkey’s most important goal for the future is to produce proper energy policies in order to decrease ED.

Page 32 of 172


Presentation No

33

Paper#

262

Authors:

Kok Fong See

Speaker

Kok Fong See

Title:

Exploring and analysing sources of technical efficiency in water system: Some evidence from Southeast Asian water utilities




Abstract: This is the first efficiency analysis of Southeast Asian water utilities that uses a double bootstrap DEA model. Three explanatory factors (i.e., population density, gross domestic production (GDP) per capita income and non‐revenue water) have been used to explain the differences in the technical inefficiency effects across water utilities in Southeast Asia. We find that Southeast Asian water utilities, on average, obtained a technical efficiency of 0.596. The result reveals that the population density is linked with the technical inefficiency in the reverse direction. Furthermore, we also find that the water utilities from countries where people have a higher GDP per capita income perform better than those from the countries with a relatively low GDP per capita income. However, there is insufficient evidence to support the proposition that non‐revenue water can significantly affect the technical efficiency of the water utilities.

Page 33 of 172


Presentation No

34

Paper#

267

Authors:

Lei Chen, Kankana Mukherjee and Subhash C. Ray

Speaker

Lei Chen

Title:

Cost Competitiveness and Energy Savings in U.S. Manufacturing: Some Alternative Scenarios




Abstract: In recent years, large swings in energy prices have underlined the need for U.S. manufacturing firms to attain energy efficiency in order to attain sustainability. At the same time (a) greater global competition has made it imperative for firms to keep their costs low so as to be competitive in the global economy and (b) job creation has become a priority for policy makers in the face of high unemployment rates. In this paper, we use Data Envelopment Analysis to examine the energy efficiency in U.S. manufacturing using state level data from the U.S. 2002 and 2007 Economic Census – Manufacturing. By taking a regional approach, this paper differs from previous studies that measure the trend in energy efficiency at the overall U.S. economy level over time. A crucial aspect of the difference in manufacturing across states is that they have different mix of industries. In order to capture the industry‐mix effect directly into our analysis, a multiple‐output, multiple‐input technology is conceptualized for the state manufacturing sector. We explore alternative measures of energy efficiency based on the specific objectives of the firm and/or policy makers. In particular, we consider the following objectives. (1) Reduce all inputs by the same proportion as much as possible; (2) Reduce energy only as much as possible without increasing any other inputs. Suppose the optimal energy use from this model is E*. (2a) Reduce energy as much as possible and choose other inputs in a cost minimizing manner; (3) Produce output at the lowest cost (individual inputs may increase or decrease); (4) Reduce energy as much as possible, but allow other inputs to increase within the existing expenditure level. From a methodological standpoint, models (1), (2), and (3) have been used in prior studies. Our current study is the first to recognize the objectives as outlined in models (2a) and (4) above. For model (2a) we utilize a two‐step process. Step 1: Solve the energy‐specific technical efficiency model (2) and determine . Step 2: minimize Subject to (output 1: energy‐intensive) (output 2: non energy‐intensive) (input 1: production labor) (input 2: non‐production labor) (input 4: materials) (input 5: capital) (input 3: energy) In this model, minimization of the energy input is treated as the first priority. In the second step we choose that optimal solution which corresponds to the lowest cost of the non‐energy inputs. Our major methodological contribution in this paper is a cost constrained measure of energy efficiency that aims to exploit the substitution possibilities between inputs within technology feasibility that might end up in a win‐win situation in terms of job creation and energy conservation. The DEA model for our proposed cost‐constrained energy minimization problem is formulated below. Min E Subject to (output 1: output in energy‐intensive industries) (output 2: output in non energy‐intensive industries) (input 1: production labor) (input 2: non‐production labor) (input 3: energy) (input 4: materials) (input 5: capital) (total cost constraint) In model (4) above, the energy input is to be minimized allowing other inputs to increase or decrease so long as the total cost (including energy cost) does not exceed the actual cost. Comparing across models, we also try to estimate the opportunity cost of pursuing energy conservation rather than cost minimization as the primary objective of firms. Our results indicate that only a handful of states have been operating at the cost minimizing point. Hence at the overall national level, there could be considerable energy savings as well as increase in employment if the manufacturing firmsproduced at the optimal point. In terms of a policy direction that aims at energy conservation as well as increasing employment in the U.S. manufacturing sector, without increasing cost (and therefore prices), our proposed measure of cost constrained energy efficiency may provide valuable insights for policy makers.

Page 34 of 172


Page 35 of 172


Presentation No

35

Paper#

38

Authors:

Foroogh Shadman and Khalid Abdul Rahim

Speaker

Foroogh Shadman

Title:

Environmental and Cost Allocative Efficiency Analysis in Steam Electricity Generation: a case study of Iran




Abstract: During the last decades, when preservation of environment gradually became the main humankind concerns, an undesirable product such as pollutants has identified as a new entry towards every performance measurement methods. Since then, pollution variable included in Data Envelopment Analysis (DEA) methodology and substantial number of DEA studies has been published. Due to the mathematical consistency with the materials balance condition, MBP incorporated into Data Envelopment Analysis (DEA) to take advantages of modeling pollution which able to produce detailed tradeoffs on cost and environmental efficiency in micro and macro level both. Determination of what changes in individual plant would increase the efficiency of the most inefficient plants levels to their efficient peers would be worthwhile. Therefore, DEA‐MBP methodology as missing ingredient allows for better monitoring and evaluation of firms and their production processes and also to integrate environmental concerns into the standard technical and economic efficiency measures (Coelli et al., 2005; Coelli et al., 2007). Our case study provides seasonal cost and environmental efficiency analysis of steam power plants in Iran during 2007‐2009. It properly demonstrated that the Sulfur amount would reduce respectively by 68% and 91% moving to cost and environmental efficient point. Due to the fact that most of the effective factors may not have been adequately captured in our first stage DEA‐MBP analysis, the efficiency scores were re‐examined to upgrade the technical, cost and environmental efficiencies for any inefficient plants to correct and catch up with the frontiers. Our study found that large generating capacity and natural gas positively influence all efficiency scores while observation over the time would negatively affect the cost efficiency.

Page 36 of 172


Presentation No

36

Paper#

144

Authors:

Ching‐Cheng Lu, Jen‐Hui Lee, Ming‐Kuang Shyu, Yung‐Ho Chiu and Hui‐Jung Lu

Speaker

Ching Cheng Lu

Title:

Evaluating Performance by Two‐Stage DEA Model of Leader‐Follower: An Application of Taiwanese Semiconductor Industry



Room, Chair: (10) IPS Auditorium, Chairman: Mad Ithnin Salleh

Abstract: Currently the characteristics of the semiconductor industry are composed of independent IC design houses, wafer foundry fabrication, wafer‐testing, and IC packaging. If wafer‐testing companies neglect to distinguish between good ICs and defective ones, good ICs may accidentally be scrapped, which will cause the potential loss in reputation, and then business is quite unsound. Traditionally DEA evaluates the efficiency of DMUs, many researches focused on measurement of the product side or market side separately, but did not jointly evaluate both sides of their efficiencies. The purpose of this paper is to explore the performance of supply chain and its members in Taiwan’s semiconductor industry. More specifically, this study is to measure the overall efficiency of both sides of productivity and markets with two‐stage model which is market‐demand oriented. Our finding, first, higher productivity efficiency does not always come with higher market efficiency. Second, the average overall efficiency of DMUs has lower efficiency than stage 1 or stage 2 in this period. Other results show that either higher productivity efficiency or market efficiency may not necessarily bring out higher overall efficiency. The Leader‐Follower model, which connects product efficiency with market efficiency, is able to measure overall efficiency.

Page 37 of 172


Presentation No

37

Paper#

30

Authors:

Ali Alshayea

Speaker

Ali Alshayea

Title:

Assessing the efficiency of public high schools in Qassim district




Abstract: The technical efficiency of 17 high Schools in Qassim district in Saudi Arabia is measured using data envelopment analysis with output oriented variable returns to scale for the years 2012/2013 . Using the number of students who passed the tests as output and the number of Students, annual expenditure per student and the number of teachers as inputs. The results showed that only 6 schools full efficient, which mean that 64.7% of schools are inefficiency, with average efficiency is 0.96, the scale efficiency showed that 58.8% of schools are reached the optimal size.

Page 38 of 172


Presentation No

38

Paper#

310

Authors:

Zalina Zahid

Speaker

Zalina Zahid

Title:

A Two‐Stage Data Envelopment Analysis (DEA) Approach: Efficiency Measurement in Higher Education Institutions:




Abstract: The two‐stage DEA approach is used to measure efficiency and to determine the effects of selected external factors on the efficiency performance. Specifically, the two‐stage models derive the efficiency scores by using the discretionary inputs, which are under the control of the decision‐making units (DMUs), and then to use the information on the non‐discretionary variables to assess their impact on the efficiency scores. In this study, this approach was applied to measure the efficiency of a number of departments from a public university and to determine the effects of external factors on the efficiency measures. In the first stage, the results showed that the efficiency scores from three different input specifications were consistent and robust to outliers. Meanwhile, in the second stage of the two‐stage approach, the influences of four selected non‐discretionary factors (age of faculties, percentage of associate professors and above, percentage of part‐time students and ratio of non‐academic staff to academic staff) on the efficiency of the faculties were determined using two statistical models, namely, OLS Regression and Tobit Regression.

Page 39 of 172


Presentation No

39

Paper#

57

Authors:

Mad Ithnin Salleh

Speaker

Mad Ithnin Salleh

Title:

Productivity Change in the Malaysian Public Higher Education Sector




Abstract: This paper adopts an alternative decomposition of the bootstrapped Malmquist productivity index introduced by Simar and Wilson (1998a, 1998b, 1999) to investigate the effect of government policy changes on the performance of Malaysian public universities between 2006 and 2009. The proposed sample period encompasses important years in the pre‐ and post‐2007 National Higher Eeducation Strategic Plan (NHESP). The advantage of this approach over the popular decomposition of Färe et al. (1994) is that this approach enables us to analyse firms’ productivity changes under variable returns to scale (VRS) while the conventional Malmquist indices assume constant returns to scale (CRS). Using this technique, one is able to decompose the technological changes into further components and provide more detailed information on the shape of the technology. The results show that the productivity of the overall sector tends to increase after the implementation of the NHESP. This positive growth was mainly due to pure technological changes in this sector. This result is in accord with a number of previous international higher education productivity studies which found that technological changes constitute a significant factor in university productivity growth. The bootstrap results also reveal that the overwhelming majority of our estimates are statistically significant.

Page 40 of 172


Presentation No

40

Paper#

136

Authors:

Rebecca Owusu, Atakelty Hailu and Michael Burton

Speaker

Rebecca Owusu

Title:

A Two‐Stage Double Bootstrap Data Envelopment Analysis of Technical Efficiency of Rice Farms in Ghana

Track: Agriculture


Room, Chair: (11) IPS Seminar Room A, Chairman: Mohsen Afsharian

Abstract: This paper applies the two‐stage double bootstrap DEA model of Simar and Wilson to analyse the technical efficiency of rice farms in Ghana using datasets from the Ghana Statistical service. This procedure ensures consistent inference within the models explaining the technical efficiency estimates. The DEA bootstrap procedure was used in the first stage to estimate the technical efficiency scores of the rice farms and in the second stage, the determinants of technical efficiency were identified using the bootstrapped truncated regression. The empirical results revealed that the technical efficiency of rice farms in Ghana may be improved by reducing input use by 62% and still be able to produce the same current level of output. The second stage regression procedure identified age of head of household, educational level and marital status as the farmer specific factors that positively influence technical efficiency. Also fertilizer and hired labour costs positively contribute to the efficiency of rice farms. Contrary to previous studies, we find female headed households as more technically efficient than their male counterparts. Policy implications are drawn from the findings.

Page 41 of 172


Presentation No

41

Paper#

143

Authors:

Ayhan Gölcükcü, Hikmet Orhan, Hasan Bal and Said Bİlgİnturan

Speaker

Ayhan Golcukcu

Title:

Testing The Best Design For Female Calf Growth With DEA

Track: Agriculture



Abstract: DEA is applied to an experimental design for the determination of the most efficient nutritional mixture on studied variables of female calves. The experimental design has two factors (protein and energy) and both have two levels. The set of totally 36 calves ‐ 9 for each group‐ is followed monthly. The amount of protein and energy given to calves were used as input. Likewise, 8 studied variables that represent growth of calves taken as output. In considering time shift Malmquist index is used. After evaluating DEA scores, it is tested whether there is a difference between energy and protein combinations. Then the best combination tried to be found.

Page 42 of 172


Presentation No

42

Paper#

177

Authors:

Dilini Hemachandra

Speaker

Dilini Hemachandra

Title:

Malmquist Index Productivity Analysis of Fruit and Vegetable Farms in Hawaii

Track: Agriculture



Abstract: Fruit and vegetable sectors are rapidly growing agricultural sectors in US. These sectors have gained attention due to higher demand and local food movements. Therefore it is important to know how technical efficiency and productivity of these sectors have changed over the recent decades. Applying Malmquist Index method, we measure changes of Total Factor Productivity (TFP) in fruit and vegetable farms in Hawaii over the census cohorts since 1982. We find that fruit farms on average have grown 5.78% in TFP per annum. Separate panels of commercial and non‐commercial fruit farms show a TFP growth over 4% per annum. Commercial vegetable farms show a 4.3% growth in TFP on average. Technological improvement has contributed more than the efficiency improvement for TFP growth in the crop sectors considered. Overall, technical efficiency and technological improvements observed with fruit and vegetable sectors in Hawaii are similar to what has been observed nationally for the agricultural sector. Furthermore, technical efficiency is identified as an area that needs improvement in order to increase fruit and vegetable production in Hawaii.

Page 43 of 172


Presentation No

43

Paper#

58

Authors:

Amin Mugera

Speaker

Amin Mugera

Title:

Benchmarking the Performance of Farms using the Expected Minimum Input Functions: A Robust Frontier Approach

Track: Agriculture



Abstract: Benchmarking the efficiency of farm enterprises is important for designing policies to promote economic growth in the farm sector. In this study, we use the order‐m frontiers to benchmark the technical efficiency of a group of 256 farms in Kansas using 2010 farm level data. The advantage of our approach over the conventional data envelopment analysis (DEA) method commonly used for efficiency analysis is that the order‐m frontiers are not determined by few extreme observations. We estimate the expected minimum input function which indicates how input efficient a farm is compared with m farms drawn from the same sample that produce same level of output with less input levels. The order‐m approach is also used to discriminate decision making units that are outliers. We find the average input efficiency to increase as m increases from 0.635 (m =10) to 1.00 (m = 300). However, removing outliers does not have significant effect on the average technical efficiency scores. Overall, our results suggest that technical efficiency scores is a relative measures that depends on number of decision making units used for comparison, a concept often forgotten when interpreting efficiency scores.

Page 44 of 172


Presentation No

44

Paper#

151

Authors:

Shinn Sun

Speaker

Sun Shinn

Title:

Introducing Ideal and Anti‐Ideal Decision Making Units in Free Disposal Full



Room, Chair: (12) IPPP Auditorium, Chairman: Ali Emrouznejad

Abstract: Free Disposal Hull (FDH) is one of the tools in the theoretical and empirical work on the measurement of productive efficiency. Excluding linear combinations of extremal observations to construct this reference technology entails that many of the observations belonging to an evaluated dataset are labeled efficient by this method. Few researchers have sought to improve the discrimination power of FDH. Van Puyenbroeck (1998) modified standard FDH method by using Andersen and Petersen (1993), referred to A&P FDH. Jahanshahloo et al. (2004a) used 0‐1 linear programming (LP), referred to 0‐1 LP FDH to find FDH‐efficient units. The purpose of this paper is two‐folds: to propose TOPSIS FDH by introducing ideal decision making unit (DMU) and anti‐ideal DMU into FDH model and to examine the tie‐breaking ability of A&P FDH, 0‐1 LP FDH, and TOPSIS FDH by using three numerical examples. Results of the comparisons show: (i) as the number of DMU, input and output is small where all of input and output levels are positive, the A&P FDH can provide a full ranking; (ii) as the number of DMU, input and output is small where some of input and output levels are equal to zero, TOPSIS FDH is more precise than other two extended FDH methods can provide a full ranking; and (iii) as the number of DMU, input and output are increased where all of input and output levels are positive, it seems that ranking by TOPSIS FDH is more precise than other FDH methods.

Page 45 of 172


Presentation No

45

Paper#

161

Authors:

Kazim Baris Atici and Victor V. Podinovski

Speaker

Kazim Baris Atici

Title:

Generalisations for Elasticity Measures on DEA Frontiers




Abstract: Recently, elasticity of response measures for DEA frontiers have been developed for both CRS and VRS technologies. In this study, we explore how the elasticity measures can be calculated when there exist additional constraints to the standard VRS and CRS formulations. Examples of such models can include DEA models assuming weak disposability, hybrid returns‐to‐scale DEA models or DEA models with production trade‐offs. Obviously, introduction of new constraints to DEA models causes changes in the production possibility set and the frontier. Therefore, there is a need for additional theoretical developments to the current literature in order to obtain the elasticity measures on the frontier of for such special production technologies. The aim is to generalise the elasticity measurement on DEA frontiers for any polyhedral production technology that can be defined. We also aim to observe how the measures change between different types of DEA models.

Page 46 of 172


Presentation No

46

Paper#

79

Authors:

Subhash Ray

Speaker

Subhash Ray

Title:

THE DIRECTIONAL DISTANCE FUNCTION AS A MINIMAX SOLUTION OF A MULTI‐OBJECTIVE OPTIMIZATION PROBLEM




Abstract: Standard radial DEA models are either input or output‐oriented. In an input‐orientation, the objective is to economize on the use of inputs to the extent possible without reducing the output. By contrast, in the output orientation, one seeks to achieve the maximum expansion of the output bundle without increasing inputs. In various decision makings, often there are different interest groups trying to pursue these two conflicting goals. In public sector agencies, there is always a struggle between the mutually incompatible goals of expanding services and reducing expenses. The Directional Distance Function offers a compromise by setting up a target where some reduction in inputs is achieved simultaneously with some increase in outputs. The input‐output bundle of an inefficient DMU is located in the interior of the production possibility set and full efficiency is attained only when it is projected on to some point on the frontier. The problem, of course, is that except in the case of the purely input oriented or the purely output oriented models, the direction of projection on to the frontier remains arbitrary. An inefficient input output bundle is projected in the direction so that lies on the frontier. The scalar is the Directional Distance Function and provides a measure of the inefficiency of the bundle. A popular choice of the direction is so that the efficient projection is This is intuitively appealing in the sense that the input bundle is contracted and the output bundle is expanded by the same proportion, This paper proposes a different approach where the Directional Distance Function serves as the minimax solution of a goal programming problem where the two (incompatible) goals are the maximum expansion of the output vector and the maximum contraction of the input vector. Suppose is the efficient output oriented projection while is the efficient input oriented projection of Now consider the input‐output bundle Clearly, unless or equals unity, the bundle will be infeasible. Define We now seek the minimum value of such that there is some feasible input‐output bundle close enough to so that and .This amounts to finding the minimum value of such that is feasible. This Directional Distance Function differs from the standard model in that it starts from an infeasible bundle and allows the minimal proportionate contraction of output and expansion of input to reach a feasible bundle on the frontier. The ‘south‐easterly’ direction of movement is The paper includes an empirical application using a 2‐output 4‐input data set for 28 international airlines.

Page 47 of 172


Presentation No

47

Paper#

88

Authors:

Vladimir E. Krivonozhko, Finn R. Førsund and Andrey V. Lychev

Speaker

Vladimir E. Krivonozhko

Title:

Measurement of returns to scale in the radial and non‐radial DEA models




Abstract: Many scientific papers were devoted to the measurement of returns to scale in radial and non‐radial DEA models. The DEA models possess some specific features that give rise to estimation problems: a) multiple reference sets may exist for a production unit under estimation, b) multiple supporting hyperplanes may occur on optimal units on the frontier, c) multiple projections may occur in the space of input and output variables. An interesting approach was proposed for measurement of returns to scale based on using strong complementary slackness conditions (SCSC) in the radial and non‐radial DEA models. However, we showed in our previous papers that the SCSC radial and non‐radial DEA models are not efficient from computational point of view. In this work, we propose a two‐stage general approach in order to measure returns to scale at projections points in the radial and non‐radial DEA models. At the first stage, a relative interior point, belonging to the optimal face, is found using a special elaborated method. In Krivonozhko, Førsund and Lychev (2012) it was proved that any relative interior point of a face has the same returns to scale as any other interior point of this face. At the second stage, we propose to determine the returns to scale at the relative interior point found at the first stage. Our computational experiments documented that the proposed approach is reliable and efficient for solving real‐life DEA models.

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Presentation No

48

Paper#

119

Authors:

Francisco Vargas, Geneviève Marchini, Luis Renteria, Gang Cheng and Panagiotis Zervopoulos

Speaker

Francisco Vargas Serrano

Title:

A DYNAMIC NETWORK DEA MODEL WITH AN APPLICATION TO MEXICAN COMMERCIAL BANKS AFTER THE 2008 GLOBAL FINANCIAL CRISIS.



Room, Chair: (13) IPPP Seminar Room 1, Chairman: Necmi Avkiran

Abstract: Banks ought generate deposits that should be transformed into a portfolio of interest bearing assets. In doing so, commercial banks faced trouble during global financial crisis. A dynamic network DEA model could be useful to find out whether banks were able to succeed in the middle of a serious meltdown. It is hypothesized that while foreign banks could cope with the global crisis, Mexican counterparts were unable to successfully overcome the international turmoil. In fact, foreign banks were rescued by their governments while domestic banks did not enjoy such a facility. The purpose of this paper is to compare and contrast Mexican banking performance before and after the global financial crisis. The proposed model will surely disclose the efficiency levels of both Mexican banking groups.

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Presentation No

49

Paper#

130

Authors:

Hirofumi Fukuyama and William Weber

Speaker

Hirofumi Fukuyama

Title:

Modeling Bank Production with Dynamic‐Network Data Envelopment Analysis




Abstract: A network framework of the bank production process is integrated into a dynamic framework by assuming that there are two stages (fund‐raising and lending‐investment stages). At the fund‐raising stage, bank management uses standard inputs (labor, physical capital, and risk‐weighted equity capital to produce intermediate outputs of two types of raised funds (deposits and the other raised funds). The fund‐raising stage is constrained by the level of nonperforming loans that were created in a preceding period. Nonperforming loans produced from the preceding period becomes an inevitable undesired input at the fund‐raising stage. At the lending‐investment stage bank management utilizes the intermediate output produced by the fund‐raising stage to produce not only loans and securities investment outputs, but also nonperforming loans as an inevitable by‐product. The dynamic framework allows for resource allocation over time in the form of carryover assets, and hence a decision of the present time has impacts on that of future periods. In this study, we explicitly incorporate risk factors in the bank performance analysis and develop dynamic Luenberger indicators. An empirical example is offered using joint‐stock regional and cooperative Shinkin banks that operated in Japan for fiscal years 2006‐2012

Page 50 of 172


Presentation No

50

Paper#

237

Authors:

Necmi Avkiran

Speaker

Necmi Avkiran

Title:

An illustration of dynamic network DEA in Chinese commercial banking: Foreign vs. domestic banks




Abstract: Chinese foreign banks have been granted equal status to domestic banks as of December 2006 – a turning‐point that marks five years of liberalization. The main motivation of this article is to illustrate for the post‐2007 period how sixteen foreign banks in China perform compared to thirty‐two domestic banks when assessed against the benchmark frontier using dynamic network data envelopment analysis (DN‐DEA). When network and dynamic dimensions are brought together, a more comprehensive analysis of the period 2008‐2010 is enabled where sub‐DMU and between‐period interactions are reflected in efficiency estimates. Weighted, variable returns‐to‐scale, non‐oriented dynamic network slacks‐based measure is used within the framework of the intermediation approach to bank behavior. A bank network is conceptualized as comprised of two sub‐DMUs, namely, interest‐bearing operations and non‐interest operations linked by number of referrals. An undesirable output from sub‐DMUs 1 and 2 (non‐performing loans, and proportion of fruitless referrals, respectively) are treated as carry‐overs that impact the efficiency of the following periods. Under robustness testing, the illustrative application discusses discrimination by efficiency estimates, dimensionality of the performance model, and stability of estimates through re‐sampling (leave‐one‐out method). Overall results indicate that foreign and domestic banks perform similarly but there are greater inefficiencies in outputs and non‐interest operations.

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Presentation No

51

Paper#

244

Authors:

Sheng Ang and Chien‐Ming Chen

Speaker

Sheng Ang

Title:

An additive two‐stage DEA model with fixed weights




Abstract: The two‐stage data envelopment analysis (DEA) model has recently attracted considerable attention. The two‐stage model that we consider has two connected production processes, in which the first stage process produces intermediate products for the second stage process to produce final outputs. In the additive two‐stage DEA models, the efficiency of the decision‐making unit (DMU) is defined to be a weighted average of the efficiencies of the two processes. The weights that are used to aggregate the stage‐1 and stage‐2 efficiency scores are a function of the optimal solution. In this study we show that the weights can turn out to be counterintuitive. We propose an alternative model in which the weights are constant. As the proposed model is non‐linear, we also introduce a heuristic algorithm to solve the model. We compare the proposed model with the existing models by an application example on 24 Taiwanese non‐life insurance companies.

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Presentation No

52

Paper#

117

Authors:

Minh Nguyen Khac, Hung Nguyen Viet, Khanh Pham Van and Hoa Ha Quynh

Speaker

Hung Nguyen Viet

Title:

FDI and Efficiency convergence in Vietnamese Manufacturing industry



Room, Chair: (14) IPPP Seminar Room 2, Chairman: Sunil Kumar

Abstract: The objective of this paper is to investigate the existence and the nature of the effect of FDI on firms’ efficiency and efficiency convergence across industries and regions in Vietnamese. Dynamic input output tables are used to construct the linkages between domestic and foreign firms. Using a large panel dataset covering manufacturing firms in Vietnam from 2000 to 2011, the analysis shows that, the impact of FDI on domestic firms’ efficiency score and convergence across industries and regions in Vietnam through the horizontal, backward and supply backward channels are

Page 53 of 172


Presentation No

53

Paper#

139

Authors:

Tsu‐Tan Fu, Mei‐Ying Huang and Jia‐Chia Juo

Speaker

Mei‐ying Huang

Title:

Metafrontier Cost Malmquist Productivity Index: an Apllication of Asia Pacific banks




Abstract: This study applies the data envelopment analysis (DEA) approach and extends the group‐specific cost Malmquist (CM) productivity index of Maniadakis and Thanassoulis (2004) to define the meta cost Malmquist productivity index under the meta production technology. Parallel to the technology gap defined in the relationship between a group‐specific adopted technology and its meta potential technology, a CM gap is defined as the ratio of two cost Malmquist productivity indexes that measure the convergence of the group‐specific cost frontier to the meta cost frontier. A further decomposition of the CM gap is also developed. Panel data of Asia pacific banks from different countries covering the period 2006‐2011 are illustrated empirically to implement the decompositions of the CM index and CM gap.

Page 54 of 172


Presentation No

54

Paper#

172

Authors:

Sunil Kumar

Speaker

Sunil Kumar

Title:

Technical Efficiency and Technology Gaps in Indian Banking Industry: A DEA‐bootstrapping Metafrontier Analysis




Abstract: The key objective of this study is to examine whether the efficiency of Indian banks across distinct ownership groups has improved after the implementation of the banking reforms in 1992. To accommodate the potential group variation of available banking technology and to obtain comparable technical efficiency measures for the ownership groups in our sample, we follow the metafrontier approach developed by Battese et al. (2004) and O’Donnell et al. (2008), and employ nonparametric DEA‐bootstrapping methodology to compute technology gap ratios and technical efficiency scores for banks relative to the metafrontier. We find that the average technical efficiency measured relative to the metafrontier has been 35.2% for Indian banks, which is quite high by any standard. Further, technical efficiency of Indian banking industry declines overtime though with a very modest and insignificant rate. We observe no evidence to support the view that financial deregulation since early 1990s improved the technical efficiency of Indian banking industry significantly. In addition, all the ownership groups experience a decreasing trend on efficiency performance during the sample period. However, an uptrend in the technical efficiency of foreign banks has been noted in the second phase of reforms. Hence, the results vivid indicate that the liberalisation regime in India was not very successful in encouraging and enabling state‐owned and private banks to enhance their resource utilization. Overall, the empirical results seem to contradict with the common knowledge that financial deregulation promotes competition and, thus, can induce efficiency improvements. Thus, our study gives no affirmative gesture about the effect of the reforms process in the Indian banking sector. One possible explanation for this might be the fact that after the liberalization and financial deregulation, the Indian banking industry had to cope with the challenge of a system that is increasingly being aligned to global norms of banking practices. Moreover, commercial banks were not in a position to absorb the shock of deregulation, which had brought about a thorough change in accounting norms, prudential regulations, competitive landscape, and the scope of operations. The state‐owned banks and private banks have done relatively worse, especially in the second phase of reforms when compared to foreign banks. This may perhaps be because of the fact that the foreign banks at the best of their capacity had adapted to the new environment more smoothly than domestic banks. On the basis of empirical results, one may safely infer that the policy environment in the post‐reforms years has created problems for the domestic banks for reorganizing their operations for improvement of their dynamic efficiency. Our results indicate that, on average, foreign banks demonstrate highest level of technical efficiency, followed by private, and then state‐owned banks. The results, thus, suggest that global advantage hypothesis as proposed by Berger et al. (2000) is prevailing in India. Further, foreign banks exhibit the highest technology gap ratios and the ratios increase over time. This indicates that foreign banks operating in India employ the most superior production technology to provide financial services to their customers since their production frontier is relatively closure to the metafrontier than other group frontiers. Overall, the empirical results indicate that foreign banks consistently improved their performance during the post‐reforms era, and their banking technology became the best‐ practice. In fact, the foreign banks operating in India have succeeded in capitalizing on their advantages of using superior production technology and show a higher level of efficiency than their domestic peers. Our findings that foreign banks exhibit higher efficiency than their domestic peers are consistent with other studies for transition and developing economies. Another striking result is that although foreign banks operate with superior production technology and close to the metafrontier, yet they are not efficient in transforming bank inputs into outputs

Page 55 of 172


and avoiding waste in the production process. This lends a support to the liability of foreignness hypothesis, which suggests that foreign banks operating in India are not able to master the disadvantages of the liability of being foreign, and their unfamiliarity with the local conditions leads to larger relative performance inefficiency. We accept the prevalence of agency theory hypothesis in the Indian banking industry since state‐owned banks are least efficient, and their group has the lowest average of the technology gap ratio. This suggests that state‐owned banks are using the available technology sub‐optimally. An interesting finding of this study is that the observed technical inefficiency in state‐owned and private banks originates primarily due to not adopting superior production technologies available in the industry (as evident from the larger sizes of technology gap inefficiency) rather than managerial problems in using the resources (as clear from smaller sizes of relative performance inefficiency). Another important feature to observe is the apparent decreasing trend of the technical gap ratio in state‐owned and private banks' groups over the study period. This tendency is disquieting with regard to achieve economic convergence across ownership groups and to maintain similar quality of services to the customers.

Page 56 of 172


Presentation No

55

Paper#

204

Authors:

Abul Hassan and Ali Emrouznejad

Speaker

Abul Hassan

Title:

The Financial Crisis and Islamic Banking Performance: A DEA of Islamic Banks’ Resistance of Crisis




Abstract: The world has witnessed lately one of its worst financial and economic crises since the 1929 great depression. Within six months, in 2008, giants of the US finance industry were either taken over (Bear Stearns), nationalized (Fannie Mae and Freddie Mac) by the US Treasury, or simply filed for bankruptcy (Lehman Brothers). Critics have been suggesting that the inner structure of the financial system, which is based on a lending scheme that is not asset‐backed, is to blame for the severity of the downturn. This view suggests that the Islamic financial system, which draws its uniqueness from the very fact that each supply of money to the economy has to be backed by physical assets, is be better prepared to handle such extreme situations. Today, the Islamic financial system is at the center of a heated debate about its capabilities, and there is a real thirst within the finance community, especially with the current crisis, for serious data analysis to back any conjecture. Given that the excessive use of derivatives, sale of debt, and short selling as well as speculation, have been largely blamed for the current financial crisis, one wonders whether an Islamic financial system could have survived the crisis. The main purpose of this study is to see whether the performance of Islamic banks remain stronger after 2007. Using Islamic banks data and by employing the DEA method we will test the following two research questions in the study: (i) Did Islamic banks were able to resist the financial crisis?; and (ii) Prior to 2007 global financial crisis, do Islamic banks have been growing at a faster rate? Reference: Hassan, Abul. 2011. “Financial Crisis, Capitalism and Islamic Economics.” MIHE Working Paper 4 Reinhart, Carmen M., and Kenneth S. Rogoff. 2008. “Banking Crises: An Equal Opportunity Menace.” National Bureau of Economic Research Working Paper 14587

Page 57 of 172


Presentation No

56

Paper#

110

Authors:

Amin Mirzapour, Dariush Khezrimotlagh and Adnan Sozen

Speaker

Amin Mirzapour

Title:

The Performance of locations by Specifying Certain Range on the Uncontrollable Variables by Using Arash Method



Room, Chair: (15) IPPP Video Conference Room, Chairman: Shiyi Chen

Abstract: The unique properties of solar energy have led to increase demands for such resources in various countries. In order to use solar energy as a natural resource, environmental circumstances and geographical location related to solar intensity must be considered. Different factors may affect the selection of a suitable location for solar plants and should concurrently be considered for identifying the optimum location of solar plants. This article presents an approach for the location of solar plants by Arash Method (AM) in Data Envelopment Analysis (DEA). DEA is a useful tool for assessing the performance evaluation Decision Making Units (DMUs) with multiple inputs and multiple outputs. AM is also one of the earlier technique in DEA to arrange DMUs strongly. In this paper, the effected factors are illustrated and AM is applied to select the suitable locations for solar plants in 40 cities in Turkey which have some uncontrollable data.

Page 58 of 172


Presentation No

57

Paper#

252

Authors:

Shiyi Chen

Speaker

Shiyi Chen

Title:

Environmental TFP Growth and its Role in China’s Regional Green Economic Development




Abstract: Environmental pollutions have become an extremely serious problem in China that makes its rapid economic growth no longer sustainable. This paper adopts the slack based measure method to estimate the energy and pollutions (e.g., waste water and waste gas) restricted total factor productivity (TFP) in China’s regional economy. The estimated actual TFP growth reveals the economic growth quality of different regions and is used to construct the dynamic index in this paper to evaluate the process of green economic development in China. The results indicate that China’s green development was experiencing a continuously growing course from mid 1980s and achieved its best performance between 1997 and 2001. Due to the reappearance of heavy industrialization, the China’s green development process was reversed since the beginning of this century. A series of environmental policies implemented by the central government stopped the deteriorating process timely and will set China on course for sustainable green development in the decades ahead.

Page 59 of 172


Presentation No

58

Paper#

26

Authors:

Rossazana Ab. Rahim and Dyg Affizah Awg Marikan

Speaker

Rossazana Ab Rahim

Title:

Environmental Performance of ASEAN Countries




Abstract: This study offers analysis of the environmental and economic performance by constructing eco‐efficiency indexes of ASEAN countries. As far as this study is concerned, there is no existing studies had measured the aggregate index of ASEAN environmental performance. The assessment of eco‐efficiency performance is important as it provides sound information to the policy makers to improve the design of their environmental policies at upholding long‐term sustainability of a nation. Employing data envelopment analysis (DEA) method, the results of this study reveal that on average; smaller economies such as Laos, Vietnam and Brunei are found to be environmentally efficient while in the context of economically efficient, larger economies such as Malaysia, Indonesia and Singapore are found to be more efficient than their counterparts.

Page 60 of 172


Presentation No

59

Paper#

327

Authors:

Behrouz Arabi, Susila Munisamy and Mohammad Sadegh Ghazizadeh

Speaker

Behrouz Arabi

Title:

Investigating the Effects of Restructuring on Iranian Power Generation Industry Eco‐Efficiency: Handling the Heterogeneity among Power Plants




Abstract: One of objectives of the restructuring in every power industry has been to enhance the efficiency of power facilities. However, power generation industry, which plays a key role in the power industry, has a noticeable share in emission amongst all other emission‐generating sectors. Therefore, in this study, in order to measure the ecological efficiency trend during an eight‐year period of restructuring in Iran, in addition to conventional technical efficiency factors, some data envelopment analysis models are introduced and adopted to find efficient power plants based on less fuel consumption, combusting less polluting fuel types, and incorporating emission factors. Moreover, for future planning and budgeting, and in order to draw a comprehensive picture of the heterogeneous power plants to be transferred to private sector, in addition to the eco‐efficiency, cost and allocative efficiency trends have been measured, and a new slacks‐based model for the cost efficiency measurement is introduced as well. In addition, to see the effects of restructuring, rather than conventional eco‐efficiency and cost efficiency factors, value of inputs and outputs are given by new rules and regulations of restructuring. Finally, results reveal that there has been a significant improvement in eco‐efficiency, cost efficiency and allocative efficiency of the power plants during the restructuring period. It is also shown that although the hydro power plants look eco‐efficient, the combined cycle ones have been more allocative‐efficient than the other power generation technologies used in Iran.

Page 61 of 172


Presentation No

60

Paper#

157

Authors:

Giannis Karagiannis and Suzanna M. Paleologou

Speaker

Giannis Karagiannis

Title:

TOWARDS A COMPOSITE PUBLIC SECTOR PERFORMANCE INDICATOR



Room, Chair: (16) IPS Auditorium, Chairman: Giannis Karagiannis

Abstract: We use the BoD (Benefit‐of‐the‐doubt) model, which essentially is a radial single‐constant‐input DEA model, to construct Opportunity, Musgravian and Total Public Sector Performance (PSP) indicators for 23 industrialized OECD countries for 1990 and 2000. The construction of Opportunity and Musgravian indicators is based on seven sub‐indicators, namely administration, education, health and public infrastructure one the one hand and distribution, stability and economic performance on the other, which in turn are aggregates of other sub‐indicators. The multiplier formulation of the BoD models provides the estimates of the necessary weights to aggregate sub‐indicators to indicators. We develop three alternative estimates based on weights obtained from self‐appraisal, peer‐appraisal and a common set of weights to be compared to the equal weights case commonly used in the literature. The former are directly obtained by applying the BoD model to the data at hand, the second are extracted from the cross efficiency matrix and the latter are obtained by a restricted least squared model with the dependent variable being the self‐appraisal efficiency estimates and as independent variables the relevant sub‐indicators.

Page 62 of 172


Presentation No

61

Paper#

19

Authors:

David Mayston

Speaker

David Mayston

Title:

Data Envelopment Analysis and the Quality Frontier for Public Services




Abstract: Published performance indicators play an increasingly important role in the management and monitoring of the quality of the public service delivered by individual producers in the public and not‐for –profit sectors in major service areas, such as education, health care and social services. Their role is heightened by the existence of competition between individual public service providers, such as schools, universities and hospitals, for the available funding on the basis of the number of customers which they attract, in part on the basis of their published quality of service indicators. The growth of managerialism in the public sector and tighter financial controls on public spending and grant availability put further financial pressure on individual public service producers to both succeed financially and deliver high quality public services according to their published performance indicators. This paper examines several important additional issues for the frontier analysis of the performance of individual public service producers through Data Envelopment Analysis and related techniques which arise once the analysis focuses not simply on the physical volume of their output but also on the quality of their public service delivery. The paper identifies ways of addressing the associated complications of endogeneity of resource inputs and non‐convexity of the feasible set which may confront DEA and other frontier estimation techniques in this context.

Page 63 of 172


Presentation No

62

Paper#

42

Authors:

Moira Scerri and Renu Agarwal

Speaker

Moira Scerri

Title:

Service Complexity a determinant of service productivity




Abstract: Customer participation and involvement in the service delivery and value creation process is of interest to operations managers and managers. Goods are produced with no direct customer involvement and it is firms that pre‐determine business operations and product specifications and the anticipated quality necessary to meet and exceed customer expectations. On the other hand service firms differ in that customers are heterogeneous. The need and wants for each customer differ and their direct involvement makes the service delivery process more complex. Service firms offer one of or a selection of service types offered by one or more service providers. However, customer input and service complexity have not yet been viewed as a factor of production. The aim of this paper is to identify customer variability and customer input, provide a definition of service complexity and apply these measures as inputs and outputs into the service firm. Using the standard service measure we apply DEA to a set of non‐homogenous firms across the travel and tourism and education sector. This research shows how customer choice and service complexity affect service productivity.

Page 64 of 172


Presentation No

63

Paper#

86

Authors:

Minyan Zhu and Antonio Peyrache

Speaker

Antonio Peyrache

Title:

The quality and efficiency of public service delivery in the UK and China




Abstract: Abstract In this paper we examine the efficiency of public service delivery at regional level in two countries, the UK and China. We introduce a method based on Data Envelopment Analysis (DEA) which measures the aggregate country level inefficiency. This country level inefficiency is then decomposed into three components: 1) lack of best practices at regional level; 2) quality of the public service delivery; 3) potential efficiency gains realizable via reallocation of inputs across regions. Our empirical results show that UK and China behave very differently across these three dimensions. Most of UK inefficiency comes from the reallocation effect, while most of the Chinese inefficiency is attributable to lack of best practices. UK also shows higher levels of quality with respect to China. We speculate about the fiscal centralization/decentralization structure of the two countries as a possible explanation for such differences.

Page 65 of 172


Presentation No

64

Paper#

165

Authors:

Dipyaman Pal and Arpita Ghose

Speaker

Dipyaman Pal

Title:

The Relationship Between Technical Efficiency And Output price Variability Of Rice And Wheat Production: Evidence From Data Envelopment Analysis Using Indian Data

Track: Agriculture


Room, Chair: (17) IPS Seminar Room A, Chairman: Gazi Md Nurul Islam

Abstract: Detailed Abstract The Motivation And The Objectives Agriculture is a very important sector in India. In case of rural India, nearly 70% of the population depends on income from agriculture. Seventy five percent of all rural poor are in households that are dependent on agriculture. (Government of India, Planning Commission). However, the output of agriculture is very much dependent on risk factor. The variability in the agricultural sector can either come from agricultural output or price or both. One of the available indicators of measuring performance of agricultural output may be the index of technical efficiency (TE) that compares actual output with respect to best possible output, given the use of different inputs. Thus the extent of variability of agricultural output can affect the extent of technical efficiency. One of the reasons behind the variability of agricultural output may be the existence of price variability. Thus, output price variability can affect the variation of TE. The earlier studies[Ahmad (2003) ; Lachaal , Karray , Dhehibi and Chebil (2005) ;Ajibefun (2006) ; Ajibefun, Daramola and Falusi ,(2006) ; Villano and Fleming (2006); Alene and Zeller (2005); Picazo and Reig (2006) ; Candemir and Deliktas (2007) ; Haji (2007) ; Dimara , Skuras , Tsekouras and Tzelepis (2008) ; Guzman and Arcas (2008) ; Mugera and Featherstone (2008); Kalirajan (1981); Mythili and Shanmugam (2000); Shanmugam (2002); Sengupta (2000); Kumar, Srinivas and Singh (2006); Sengupta and Kundu (2006) ; Ray and Ghose (2013)] on TE although considered different institutional, infrastructural, economic and demographic factors did not however considered the influence of price variability in explaining the technical efficiency. Also there is dearth in the literature highlighting crop specific study of TE in the Indian context. This paper estimates the effect of price variability on TE of rice and wheat for 1970‐71 to 2008‐09.The choice of these crops is guided by the fact that their share in total food grains production have increased from 53% in 1950‐60 to 77% in 2001‐2009. Methodology and Data Sources On the basis of the technique used for analysis, efficiency estimation can be broadly classified into two groups (i) Parametric approach to efficiency analysis using stochastic frontier production approach and (ii) Non‐parametric approach to efficiency analysis using Data Envelopment Method. The parametric approach uses specific functional form of the input output relationship whereas the non‐parametric DEA approach tries to estimate the frontier by some linear programming approach without making specific functional form of the production relationship. The paper uses non‐parametric DEA approach to measure TE. Technical efficiencies can either be Input oriented or Output oriented. In case of output oriented measure the TE of a firm can be computed by comparing its actual output with the maximum producible quantity from its observed inputs i.e. by how much can output quantities be proportionally expanded without altering the inputs quantities used. In input oriented measure, the TE of a firm can be measured by comparing its actual input in use with the minimum input that would produce the targeted output level i.e. by how much can input quantities be proportionally reduced without changing the actual output bundle . The paper uses the concept of output oriented TE of non‐parametric DEA approach. Following Banker, Charnes, and Cooper (1984), the output‐oriented radial technical efficiency of a firm with an observed input‐output bundle (x0, y0) under the variable returns to scale assumption is obtained as: ζ_y (〖x 〗^0,〖 y〗^0 ) =1/Φ^* (1) Where Φ^* = max s.t ∑_1^N▒λ_j y^j ≥ y^0; ∑_1^N▒λ_j x^j ≤ x^0; ∑_1^N▒λ_j = Where λ_j ≥0;(j=1,2,…N) When CRS is assumed the restriction ∑_1^N▒λ_j = is deleted from equation (1). The output oriented technical efficiency is estimated by using state level panel data from 1970‐71 to 2008‐09 in a single‐output, multi‐input model. For empirical purpose sometime standard deviation is taken as an absolute measure of variability and the coefficient of variation is taken as the relative measures of variability (Heady, 1952 and

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Dandekar, 1976). So in this present study the price variability is obtained by taking eight year moving average of the coefficient of variation of the prices. For example, average of the coefficient of variation(CV) of output price from 1963‐64 to 1971‐72 is taken as the output price variability for the year 1971‐72, similarly average of the CV of output prices from 1964‐65 to 1972‐73 is taken as the output price variability for the year 1972‐73 and so on. In order to find out the factors influencing TE, this study uses different infrastructural, institutional, and demographic factors as the determinants of the TE along with output price variability. These factors are HYV, Government irrigation (GI), Rainfall (RF), Government expenditure on agricultural education, research, and extension (E), Rural literacy rate (RL), Agricultural Loan (AL), Per Capita Net Domestic Product from Industry (PNDPI) and Distribution of Land Holding (G). A panel regression analysis has been used while estimating the parameters. The model uses seemingly unrelated regression (SUR) type framework and adjusted for contemporaneous correlation (across units) and cross section heteroscedasticity. The inputs included are: (i) Land; (ii) Labor; (iii)Fertilizers; (iv) Irrigated Area; (v) Diesel Engine; (vi) Electric Engine; (vii) Tractors, and (viii) Electricity used in the agriculture. In case of Rice Eleven major Rice producing States has been considered which are Andhra Pradesh(AP), Assam(AS), Bihar(BI), Haryana(HA), Karnataka(KA), Madhya Pradesh(MP), Orissa(OR), Punjab(PU), Tamil Nadu(TN), Uttar Pradesh(UP), and West Bengal(WB). In case of Wheat Six major Wheat Producing states has been considered on the basis on the above mentioned ground. The major Wheat producing states are Bihar (BI), Haryana (HA), Madhya Pradesh (MP), Punjab (PU), Rajasthan (RA), and Uttar Pradesh (UP). All the Data has been collected from the different issues of Statistical Abstracts published by Central Statistical Organization (CSO) of India, www.indianstat.com (an online commercial data service), Agricultural Statistics at a Glance, and Agriculture in Brief published by the Central Statistical Organization, different issues of Census of India, State Finance, Handbook of Statistics of Indian Economics, Cost of Cultivation data, different publication of Research Foundation of Economy and Political Weekly and Agricultural prices in India published by the Government of India and agricultural census. Empirical Result The present paper establishes the fact that the extent of output price variability has something to do with technical efficiency of agricultural production of rice and wheat. Output price variability raises TE of rice in the first stage up to a limit, but as it increases further TE fall. One of the possible reason for this may be that larger variability may affect producers to move towards the risk‐averse behaviour, and as a result the producers takes into account more stable measures to increase production to reduce losses from increase in output price variability. But as output price variability increases beyond a limit, it is impossible for the producer to control the influencing factors and as a result the efficiency decreases. However, the net marginal effect of output price variability on TE of rice is negative, so, one can conclude that the relative strength of decrease in TE is stronger than the strength of initial increase. For wheat in contrast to the case of rice, the output price variability has negative and significant effect on the TE starting from the beginning. This may be because of the fact that the wheat production is much more HYV or modern technology sensitive as compared to rice. Thus, as the output price variability increases the farmers cannot control the overall process of production by their risk averse behavior which adversely affect the level of TE. Further, this paper also establishes the role of industrial income in explaining technical efficiency of both rice and wheat production which was not evident from the earlier one. Apart from above mentioned determinants other major determinants, which are positive and statistically significant, for explaining the variation of output oriented technical efficiency in case of rice and wheat turns out to be rainfall, government irrigation, government expenditure on agricultural research and extension, agricultural loan, rural literacy and HYV. The other factor influencing TE is inequality in the distribution of operational land holding. In fact this variable has a non‐linear relationship with TE. To start with as inequality in the distribution of land holding falls TE increases but up to a limit. If the inequality falls further, TE decreases. Thus the technical efficiency of rice and wheat may increase if the policy of land reforms is implemented up to the limit and falls after that.

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Presentation No

65

Paper#

232

Authors:

Jacinta Lemba

Speaker

Jacinta Kanini Lemba

Title:

Application of DEA in impact Analysis of Agricultural Interventions

Track: Agriculture



Abstract: Impact Analysis of Agricultural Development interventions revolve around measurement of outcomes such as adoption of proposed technologies and change in crop yields. But studies on the impact of interventions on farm efficiency are seldom. The research on this paper uses Data Envelopment Analysis (DEA) to determine the impact of Agricultural interventions on the technical efficiency of small scale farms in the semi‐arids of Kenya. Techniques such as the Production function are applied in productivity analysis of farms as they show cause‐and‐effect relationships particularly between farm inputs and outputs. However, they require large input of data which is not available in targeted intervention‐project settings. Such projects focus on small groups of farmers in a certain region. To counter such data limitation, the DEA technique was used in this research. Farm ‐level average technical efficiencies for each of the interventions namely; the Makueni Agricultural Project (MAP), International crop Research Institute in Semi‐Arid Tropics (ICRISATP), the Community Based Nutrition Project (CBNP), the Kenya Rural Enterprise Bank Programme (K‐REP) and the Kibwezi Irrigation (Irrigation) and a control group were computed in pooled data. A Tobit regression was then used to determine whether participation in specific interventions contributed to the farm technical efficiency. The results showed that technical efficiency was significantly influenced by participation in the Irrigation intervention. The findings led to the conclusion that harnessing irrigation and markets (input, credit and produce) should be priority objective of Agricultural interventions in the Semi‐Arids.

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Presentation No

66

Paper#

308

Authors:

Gazi Islam, Tai Yew and Kusairi Noh

Speaker

Gazi Md Nurul Islam

Title:

Parametric and Non‐parametric Estimates of Technical Efficiency for Fish Cage Culture in Peninsular Malaysia

Track: Agriculture



Abstract: Cage culture has become increasingly important in the aquaculture industry of Peninsular Malaysia. The cage culture areas for fish continue to expand with a view to achieve higher output and generating more export earnings. This paper uses farm level data gathered from Perak and Johor States of Peninsular Malaysia to investigate the technical efficiency of brackish water fish cage culture. Two widely used models, i.e., data envelopment analysis (as nonparametric estimation) and stochastic frontier production function (as parametric estimation), are employed for this purpose. The study found that technical efficiency of the sampled fish cage farms averaged around 30 to 40 percent. This implies that great potential exists to increase fish production through improved efficiency in cage culture management in Peninsular Malaysia. The seed, labour and regional difference seemed to affect technical efficiency. Initiatives to undertake extension programmes at the farm level are needed to help cage culturists in utilizing their resources more efficiently in order to substantially enhance their fish production.

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Presentation No

67

Paper#

90

Authors:

Manoj Rajakaruna Mudalige

Speaker

Manoj Rajakaruna Mudalige

Title:

Estimation of Fertilizer Use Efficiency using Slack Based DEA: Implications for Subsidizing Fertilizer for Rice Farms in Sri Lanka

Track: Agriculture



Abstract: Understanding efficiency of using fertilizer is a fundamental element required to address the policies related to the use of fertilizer. Subsidizing fertilizer has been one of the most controversial policy debates in developing country agriculture. Major criticisms of the fertilizer subsidy have been “crowding in” and “crowding out” effects which leads to inefficient application of fertilizer. Fertilizer is heavily subsidized in Sri Lanka with approximately 90 percent is off from the cost, insurance and freight (CIF) price. This scenario makes it interesting to examine the levels and trends in fertilizer use efficiency. We use a slack based Data Envelopment Analysis (DEA) model to estimate fertilizer use efficiency based on cross sectional data from Sri Lankan rice farms for the years 2007‐2010. For comparison purposes, we estimate technical efficiency and other input use efficiencies. Fertiliser use shows around 24 percent inefficiency on average. Interestingly farmers use fertilizer more efficiently than the other inputs. There is no decline in fertilizer use efficiency over the years even with continuously increasing subsidy. Bootstrapped truncated regression model results in the second stage suggest addressing the efficiency enhancing factors such as irrigation, quality seed, land scale and female labour participation in future sectoral policy designs.

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Presentation No

68

Paper#

255

Authors:

Majid Zerafat Angiz Langroudi, Seyed Mahmoud Davoodi and Sahubar Ali Mohammad Nadhar Khan

Speaker

Sahubar Ali Mohamed Nadhar Khan

Title:

An algorithm to study influence of the input variables on the efficiency in Data Envelopment Analysis


Date Time: SESSION 4 (Parallel)Wednesday April 16th9:00‐10:30

Room, Chair: (18) IPPP Auditorium, Chairman: Joshua Ignatius

Abstract: In most studies in Data Envelopment Analysis, Decision Making Units are under the supervision of a unique management. For example the leaders of a bank interest in evaluating their own branches. For this purpose, managers are interested in investigating the influence of each input in the whole efficiency. In this paper, using the preference aggregating methods, an algorithm is presented in which a DEA model is utilized to rank inputs considering their influence in efficiency. For this purpose, first, Data Envelopment Analysis is employed to evaluate a group of Decision Making Units. Consequently, inputs of the mentioned Decision Making Units are considered as alternatives (or candidates), and using a modified Data Envelopment Analysis model that is categorized as aggregating preference ranking method, the influence of inputs in efficiency of Decision Making Units is investigated.

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Presentation No

69

Paper#

302

Authors:

Joshua Ignatius and M.‐R. Ghasemi

Speaker

Joshua Ignatius

Title:

Input Retention and Information Preservation on an Efficient Frontier




Abstract: Data envelopment analysis (DEA) is a popular technique for measuring the relative efficiency of decision‐making units (DMUs) based on a set of inputs and outputs. However, DEA model assumes that the number of inputs and outputs have been set a priori based on certain justification. An excessive number of input variables is redundant in the efficiency analysis, and may merely reflect the correlation among inputs of DMUs, and the relative size of each DMU. We introduce a method to gain a parsimonious set of inputs by first estimating the distance among the inputs on the efficient frontier. Then, the method allows an informed decision on whether it can be omitted with least (or without) loss of information. The proposed method is further validated and described using an established numerical example.

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Presentation No

70

Paper#

46

Authors:

Ming‐Miin Yu, Li‐Hsueh Chen and Bo Hsiao

Speaker

Ming‐Miin Yu

Title:

Resource allocation in the presence of undesirable outputs: a DEA approach




Abstract: Since resource allocation is an important issue in management, researchers and business managers has been attracted to explore it. Recently, data envelopment analysis has provided a new perspective to analyze this issue. However, most of the previous studies about resource allocation via data envelopment analysis ignored the existence of undesirable outputs. This study designs an alternative data envelopment analysis model, which incorporates desirable outputs and undesirable outputs, to allocate resources. In order to deal with the inconsistency, we propose a single‐phase data envelopment analysis model which is more reasonable to do the resource allocation of a decision making unit. Since this single‐phase data envelopment analysis model is obtained from modifying the two‐phase data envelopment analysis model proposed by Wu et al. (2013), the results of single‐phase approach are compared with those of two‐phase approach. The results of proposed approach may provide more valuable suggestions to policy makers and business managers.

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Presentation No

71

Paper#

83

Authors:

Sanjeet Singh and Surya Sarathi Majumdar

Speaker

Sanjeet Singh

Title:

Improving DEA efficiency under constant sum of inputs/outputs and common weights




Abstract: In this paper, we have formulated Data Envelopment Analysis (DEA) models to calculate the best strategy for improving the efficiency of an inefficient decision making unit (DMU) when the parameters of all DMUs are weighted with a common set of weights, and there is a constant sum of inputs/outputs constraint. Theoretical results have been illustrated with the help of a numerical example.

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Presentation No

72

Paper#

140

Authors:

Tsu‐Tan Fu

Speaker

Tsu‐Tan Fu

Title:

Evaluating Performance of Colleges of Business of Universities in Taiwan using a Hybrid Fuzzy AHP‐DEA Model

Track: Fuzzy DEA


Room, Chair: (19) IPPP Seminar Room 1, Chairman: Tsu‐Tan Fu

Abstract: This paper develops a hybrid fuzzy AHP and assurance region DEA model to evaluate the performance of colleges of Business in Taiwan. The subjects of evaluation are business colleges in Taiwanese general and Polytechnic universities. We also conduct a survey to 5 different types of stake holders, including senior college students, college graduates, Directors of human resource of business firms, professors majored in education, and Deans of business colleges, to elicit their subjective AHP weights among proposed performance indicators. We then combine their subjective AHP weights into the measurement of performance score using the assurance region DEA model. Empirical results show that the job market performance dimension has been highly appreciated by educational‐demanders such as Recruiters in job market and students, whereas the Multiple ability development dimension is well appreciated by educational‐suppers including college Deans, and Professors with education major.

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Presentation No

73

Paper#

236

Authors:

Majid Zerafat Angiz Langroudi, Mazna Mat Kasim and Jehan S.Saleh

Speaker

Jehan Saleh Ahmed

Title:

Using Data Envelopment Analysis to defuzzify a group of dependent fuzzy numbers

Track: Fuzzy DEA



Abstract: Abstract The fuzzy set theory was introduced as an extension of the classical set theory for modeling human logic. The important stage in fuzzy systems application that deals with fuzzy numbers and converts them to the real line is defuzzification. Most of the existing methods deal with data (fuzzy numbers) as individuals and independent in the form of specific numerical value. But, the data in real situation are sometimes observed with a relationship among them, such data mathematically called dependent. In other words, these methods convert fuzzy numbers to a real value “crisp value” without maintaining the characteristics of this data as a group or without achieving the conditions or constraints imposed on this group. The objective of this paper is to develop a new defuzzification method to deal with group of dependents fuzzy numbers by approximating the optimal solutions in the production Possibility Set’s interior in Data Envelopment Analysis. In addition, the new methodology is implemented to solve a real world problem.

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Presentation No

74

Paper#

271

Authors:

Alireza Fallahpour, Ezutahudoncy Olugu, Sitinurmaya Musa, Dariush Khezrimotlagh and Sujit Singh

Speaker

Alireza Fallahpour

Title:

Supplier selection under fuzzy environment: A hybrid model using KAM in DEA

Track: Fuzzy DEA



Abstract: In today’s competitive world, supplier selection is contemporary issue to business success for the manufacturing industry. Robust techniques are required to evaluate and select the most qualified suppliers. Regarding to the literature, the hybrid data envelopment analysis‐artificial intelligence (DEA‐AI) models are the effective models to assess the suppliers’ performance. This paper proposes an integrated Kourosh and Arash Model (KAM) in DEA, and Adaptive Fuzzy Inference System (ANFIS) as a powerful prediction tool to estimate the supplier efficiency scores. This hybrid model consists of two parts. First part applies KAM to determine the besttechnical efficiency score for each supplier, while the second part utilizes the suppliers’ performance score for training ANFIS to estimate the new suppliers’ performance. The proposed model is validated using data from a cosmetic manufacturing company.

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Presentation No

75

Paper#

89

Authors:

Mozhgan Mansouri Kaleibar, Ali Ashrafi and Sahand Daneshvar

Speaker

Mozhgan Mansouri Kaleibar

Title:

Modified Centralized resource allocation model with variable return to scale for fuzzy data

Track: Fuzzy DEA



Abstract: A centralized decision maker (DM) as supervises of its decision making units (DMUs), interest to minimizing the total input consumption and maximizing the total output production. This can be done by maximizing the efficiency of individual units using by conventional DEA models. This paper computes the models which used the above process for fuzzy data. We deal with linear programming problems with fuzzy parameters from the viewpoint of expert's imprecise or fuzzy understanding of the nature of parameters in a problem‐ formulation process and consider fuzzy linear programming arising from the linear programming problems. It would be certainly more appropriate to interpret the experts understanding of the parameters as fuzzy numerical data which can be represented by means of fuzzy sets of the real line known as fuzzy numbers. Now we extended the centralized resource allocation in fuzzy environments and gave an allocation scheme by adopting the solution for this data. The advantages of these models are considered by examples.

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Presentation No

76

Paper#

199

Authors:

Hazriah Hasan and Ismail Ahmad

Speaker

Hazriah Hasan

Title:

The efficiency of Waqf collection and distribution of Malaysia State of Islamic Religion Councils (SIRCs): A two‐stage analysis



Room, Chair: (20) IPPP Seminar Room 2, Chairman: Heinz Ahn

Abstract: Managerial efficiency is crucial in financing a not‐for‐profit institution. Waqf or endowments are among one of the Islamic financial institutions purposely serves as a catalyst for economic growth and development of Muslims. In Malaysia, every state manages its own Waqf department by State Islamic Religion Councils (SIRCs). As the single trustee of the Waqf funds, SIRCs are responsible to manage all the activities and transactions for the development, collecting the funds, investing and distributing the revenues from the funds. Using Data Envelopment Analysis (DEA), this study breaks the efficiency measurement into two stages, i.e. the collection stage and the distribution stage. For this study we will separate the collection function from the distribution function. In the first stage, we evaluate the efficiency of Waqf collection, considering the number of officers employed; the number of banks who act as collection agent and the expense incurred in collecting Waqf will be the inputs. Subsequently, using the Waqf collection amount as input, the second stage of our efficiency evaluation is on the distribution of Waqf. In this second stage, we included the distribution expenses as additional inputs in producing the output that is the Waqf distribution.

Page 79 of 172


Presentation No

77

Paper#

264

Authors:

Md. Azizul Baten, Maznah Mat Kasim and Razamin Ramli

Speaker

Md. Azizul Baten Baten

Title:

DEA Efficiency and Forecasting Productivity Change with Brownian Motion for Central Bank of Malaysia




Abstract: This paper considered Net Profit and Loan & Advances as outputs and Deposit, Reserve and Fund from International Monetary Fund as inputs of the central Bank of Malaysia (Bank Negara) over the time period from 2000 to 2012. Output oriented Data Envelopment Analysis (DEA) method and Malmquist DEA method are used here to measure the efficiency and productivity change respectively. The minimum efficiency (0.77) is observed for net profit and Loan & Advances of the Bank Negara Malaysia in the year 2004. During the sample period, the mean efficiency of the Bank Negara Malaysia is found to be 0.926. The result shows that productivity change of output quantities are decreasing for the Bank Negara Malaysia in most of the years. The increasing productivity change is recorded in the years of 2000, 2001, 2009 and 2010. Finally, the productivity change of Bank Negara Malaysia is forecasted for the next 10 years using Brownian Motion model.

Page 80 of 172


Presentation No

78

Paper#

34

Authors:

Heinz Ahn and Minh Hanh Le

Speaker

Minh Hanh Le

Title:

Integrating decision criteria into DEA assessment of bank performance: An efficiency analysis of German savings banks from 2006 to 2011 using a generalised DEA model




Abstract: This study presents an approach to solve input‐output specification problems in Data Envelopment Analysis (DEA) applications for measuring bank performance. It aims to enable the performance assessment against a profound value judgment system by directly incorporating decision making criteria into the process of defining performance indicators. The approach combines a performance measurement framework orientated toward purpose rationality criteria by Weber (1978) and the Generalised Data Envelopment Analysis (GDEA) model developed by Dyckhoff and Allen (2001) and Dyckhoff and Ahn (2010). The proposed model is applied to the case of German savings banks from 2006 to 2011 whose distinct goal sets demonstrate the need for orientating performance measurement toward decision making criteria. The findings suggest that the German savings bank sector be more efficient in fulfilling its public mandate (as primary goal) than in generating profit. The sector witnesses a dispersion in scale of operating, and larger banks are more likely to experience decreasing returns to scale and have lower scale efficiency scores. The results confirm the active role of German savings banks in contributing to the economic stability of the country when revealing that their performance to benefit the respective regional public was barely affected by the financial crisis 2008‐09.

Page 81 of 172


Presentation No

79

Paper#

62

Authors:

Shu‐Chin Huang and Susila Munisamy

Speaker

Shu‐Chin Huang

Title:

Banks’ outward foreign direct investments and their efficiencies




Abstract: Previous work shows that outward foreign direct investment (OFDI) affects manufacturing firms’ research and development investment, employment, survival rates and structural changes. Because banks are not only service producers but also financial intermediaries, the impact of their outward foreign direct investments can be different from the manufacturing sector. Using data of leading banks in Taiwan, Hong Kong, mainland China and Germany, this paper investigates the relationship between banks’ outward foreign direct investments and their technical efficiency in 2012. We propose to apply the Data Envelopment Analysis using metafrontier concept to estimate technical efficiency and technological gap for the banks operating in these countries and then use the Heckman Selection Model and the cross‐sectional regression to identify the relationship between efficiency and OFDI. Germany is one of the major countries in the Euro Zone in which capital movement has been freed since 1998. Because OFDI is relatively new for most banks in the emerging countries such as Taiwan, HK and mainland China, we compare their results with German banks. Along the wave of globalization, liberalization in the banking sector has become a trend across world regions in recent decades. However, existing studies in the area is still limited. We conclude the contribution of this paper in the productivity analysis literature and the banking and financial literature.

Page 82 of 172


Presentation No

80

Paper#

12

Authors:

Mohammad Ali Nasseri Jahromi, Erfaneh Rasekh Jahromi, Jalil Kodaparast, Athar Rasekh Jahrom and Reza Nasseri Jahromi

Speaker

Mohammad Ali Nasseri Jahromi

Title:

Technical efficiency and potential productivity gains of cereal farms in Iran

Track: Agriculture


Room, Chair: (21) IPPP Video Conference Room, Chairman: Hirofumi Fukuyama

Abstract: The method of DEA to measure technical efficiency (pure technical efficiency and scale) grain operators in Iran. The observed improvement is due to the increase in pure technical efficiency (management), including training, equipment, and the quality of human resources. We use a non parametric approach in an intertemporal framework (3 years) to estimate technical inefficiency and scale grain farms. Measured inefficiencies are interpreted as potential productivity gains, translated here as increased cereal yields per hectare. The total absorption of the technical inefficiency and lead to an 11% increase in crop yields and thus increase the food security of our country.

Page 83 of 172


Presentation No

81

Paper#

137

Authors:

Jean Joseph Minviel and Laure Latruffe

Speaker

Laure Latruffe

Title:

Impact of public subsidies on farm technical efficiency: a Bayesian meta‐analysis

Track: Agriculture



Abstract: In this paper, we contribute to the literature studying the link between public subsidies and farm technical efficiency. We provide a meta‐analysis and a meta‐regression analysis of the empirical literature, where the observed effect sizes and their heterogeneity were modeled and investigated using the empirical Bayes meta‐analytical framework. Our investigation confirms the generally‐found negative effect of subsidies on farm technical efficiency, suggesting that public subsidies distort farmers’ incentive to produce efficiently. The empirical Bayes estimate of the overall effect size indicates that a 1% point increase in the subsidy share in farm income leads to a 1.65% decrease in the technical efficiency. Results from the meta‐regression analysis reveal that the overall effect is robust to the production sub‐sector and the area considered, and the method used (DEA or else).

Page 84 of 172


Presentation No

82

Paper#

243

Authors:

Luke Abatania, Atakelty Hailu and Amin Mugera

Speaker

Luke Nsugnana‐ang Abatania

Title:

Technical efficiency of smallholder crop production in Ghana

Track: Agriculture



Abstract: Agricultural production in Ghana is mainly carried out by smallholder farmers on a subsistence basis. Smallholders constitute about 95% of the farming population and produce 80% of the annual output. This study investigates the level of technical efficiency of farms using a sample of 294 households from the Upper East region of Ghana. Bootstrap DEA methods are used to estimate technical efficiency and the factors affecting efficiency are examined. This is the first study that uses bootstrap DEA methods in efficiency analysis of agriculture in Ghana. Results from the application of the nonparametric DEA frontier models show that mean technical efficiency is low and there is significant variability in efficiency among the sample farms. The results imply that agricultural productivity can be increased substantially through improvement in technical efficiency. From a policy point of view educational status and use of hired labour have been found to hold the greatest potential for improving technical efficiency in Ghanaian agriculture.

Page 85 of 172


Presentation No

83

Paper#

60

Authors:

Mohammad Khoveyni and Robabeh Eslami

Speaker

Mohammad Khoveyni

Title:

New insights on recognizing strong and weak congestion slack based in DEA

Track: Agriculture



Abstract: Congestion is one of the important concepts in data envelopment analysis that is a decrease (increase) in one or more inputs of a decision making unit (DMU) causes an increase (decrease) in one or more outputs. In this vein, Tone and Sahoo’s congestion approach is one of the most robust congestion approaches in DEA (data envelopment analysis). However, in the presence of alternative optimal solutions, Tone and Sahoo’s approach is unable to detect congestion (strong and weak). Moreover, in their approach, all inputs and outputs of decision making units (DMUs) have been considered positive, while in real world, data is often non‐negative. In this research, a slack‐based DEA approach is first proposed to recognize congestion (strong and weak) of DMUs and then, DMUs are clustered in three clusters. One of the advantages of our approach is capable of detecting congestion (strong and weak) in the presence of alternative optimal solutions. Other advantage is capable of identifying congesting (strong and weak) DMUs with non‐negative inputs and outputs. Lastly, we apply the approach to the data sets for making comparisons between the proposed approach and Tone and Sahoo’s approach then some directions for future research are suggested.

Page 86 of 172


Presentation No

84

Paper#

171

Authors:

Arpita Ghose

Speaker

Arpita Ghose

Title:

Interstate variation of Efficiency of Elementary Education in India: a Meta Frontier and Group Frontier Analysis

Track: Health care / Education


Room, Chair: (22) IPS Auditorium, Chairman: Dariush Khezrimotlagh

Abstract: Detailed Abstract The Motivation and the objectives :This paper estimates technical efficiency scores(TE) for primary and upper‐primary level of education in India separately by constructing two separate frontiers for the two groups of states (i) General Category States(GCS) and (ii) Special Category States(SCS) and the union territories(UT) using non‐parametric Data‐Envelopment‐Analysis( assuming variable‐returns‐to‐scale),obtains technology closeness ratio ( TCR) measuring the proximity of the Group frontiers to the Meta‐frontier (representing the frontiers comprising of all the Indian states) and also explains the determinants of such efficiency score. Estimation is carried out for four successive years 2005‐06 to 2008‐09 . There is a dearth in studies on this topic relating to India.Tyagi (2009) assessed the TE among 348 elementary schools of Uttar Pradesh state in India by using DEA. Senguptaand Pal (2010), explained the primary education sector in India . However, they have constructed the frontier taking all the states and UT taken together. A second stage Panel regression is used to explain for the determinants of such TE both primary and upper‐primary level separately for GCS and SCS. Two separate frontiers for two groups of states are generated because the construction of a single frontier encompassing all the Indian states may not be very meaningful, as all the states do not operate under same fiscal environment. SCS gets more benefits from the Centre; 90% of the central assistance for these states is treated as grant while remaining 10% is considered as loan, whereas GCS get only 30% grant and 70% loan. The reason behind this is that there are problems due to hilly terrains, international‐borders etc. as there cannot be good industrial development and geographical disadvantages for infrastructural development. UT also receives more grants as compared to GCS. Thus maximum educational‐‐output producible from an input bundle by a school within a particular group of state may not be as high as what could be produced if the school could choose to locate in the other group Methodology for finding Group and Meta Frontier: In order to measure the technical efficiency of a DMU, it is necessary to recognize that all of the observed DMUs may not have access to the same frontier. Rather, different DMUs or categories of DMUs may face different production technologies. A variety of geographical, institutional, or other factors may give rise to such a situation. Constructing a single production frontier based on all the data points would, in such cases, result in an inappropriate benchmark technology. A way to measure the impact of technological heterogeneity across groups is to construct a separate group frontier for each individual group alongside a single grand or meta‐frontier that applies to DMU from all the groups. In order to construct different production possibility sets for different groups, we first group the observed input‐output bundles by the locations of the corresponding DMUs. Suppose N DMUs are observed and these DMUs are classified, according to some criterion, into H number of distinct and exhaustive groups, gth group containing Ng number of DMU . Define the index set of observations J = {1, 2, ………..N}and partition it into non‐overlapping subsets Jg = { j : DMU j belongs to group g; (g = 1, 2 , ……….. H)}. In this case, the production possibility set for group g will be The set Tg is the free disposal convex hull of the observed input‐output bundles of DMUs from group g. Suppose, that the observed input‐output bundle of firm k in group g is A measure of the within‐group (output‐oriented) technical efficiency of the DMU k, is where solves the following linear programming (LP) problem: unrestricted The above LP problem is solved for each DMU k in the gth group. Next we consider the technical efficiency of the same DMU k from group g relative to a grand technological frontier, or what is called the Meta frontier. The Meta frontier is the outer envelope of all of the group frontiers. It consists of the boundary points of the free disposal convex hull of the input‐output vector of all firms in the

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sample. The (grand) technical efficiency of the DMU k from group g is measured as Where Unrestricted In view of the fact that the grand production possibility set contains every group production possibility set, it is obvious that and, hence, , for every k and g. In other words, DMUs cannot be more technically efficient when assessed against the meta‐frontier than when evaluated against a group frontier. Technology Closeness Ratio When, for any DMU k in group g, the group efficiency and the grand efficiency measures are close, we may argue that evaluated at the input bundle , the relevant group frontier is close to the meta‐frontier. Instead of evaluating the proximity of the group frontier to the meta‐frontier at individual points, it is useful to get an overall measure of proximity for the group as a whole. For this, we first define an average technical efficiency of the DMUs in the group (i.e., relative to the group frontier) by the taking a geometric average of such individual technical efficiencies. For the group g this will be given by Similarly, the average technical efficiency of group g, measured from the meta‐frontier, will be For group g, an overall measure of proximity of the group frontier to the meta‐,frontier is its technology closeness ratio TCR increases if the group frontier shifts towards the meta‐frontier, ceteris paribus, and is bounded above by unity which would be realized if and only if group frontier coincides with the meta‐frontier. Methodology for finding out the determinants of TE score: A second stage panel regression has been sorted to find out the determinants of TE score. The paper measures the relative sensitivity of the central‐grant in explaining the efficiency performance of primary as well as upper‐primary education. For finding out the determinants of efficiency, study includes (i) some factors from poor infrastructure to see whether poor infrastructure inhibit the achievement of technical efficiency. (ii) some social indicator to investigate whether inclusion of the backward classes into the education system increases efficiency score, (iii) some policy variable to test whether provision of more public facilities increases efficiency score and (iv) also some state level macro aggregates like per‐ capita net State domestic product, income inequality, and number of persons below the poverty line to see to what extent the general environment of the state matters in explain efficiency. In this context it may also be noted that due to lack of sufficient number of full time teachers many schools employ a significant amount of Para teachers. So basic question is does the quality of the Para teachers matters? The paper also takes into account the quality of Para teachers as possible determinants of efficiency score. The paper also introduces three regional dummy for East West and South taking north as a base to see whether regional variability matters. Results of Estimation: • Technology closeness ratio corresponding GCS is high as compared to SCS with respect to both primary and upper primary level of production. Thus, we are getting a less benefit from the employment of average bundle of input in a school that is located in a SCS as compared to a school belonging to a GCS. • The group efficiency for GCS is low as compared to SCS both in case of primary and upper primary. Although both GCS primary and upper primary level are more close to meta but are but they possesses lower value of group efficiency, representing the higher degree of variability among them. SCS Upper‐ Primary has a high value of average group efficiency (0.98), but a relatively low value for average Grand efficiency (0.92) as compared to SCS primary indicating that in this group almost all schools behave homogeneously and relatively poorly as compared to SCS Primary! •Also the TCR value ranges from 0.98 to 0.94, signifying that the region classification in fact matters and on average, the maximum output producible from an input bundle by a school required within the region is not almost as high as what could be produced if the school could choose to locate anywhere in India. Thus the analysis of group frontier and Meta frontier in turn suggests that classification of the state’s matters. •Results of panel regression suggest that infrastructural variables, policy variables and school specific variables and also the state level macro aggregates are important in explaining TE scores. This observation is true for both the primary and upper primary level of education and for GCS and SCS and UT.One interesting thing that appears from the analysis is that TE score of both GCS and SCS and for primary and upper primary level of education are significantly related to actual grant from Centre. The elasticity of TE with respect to actual grant for GCS primary , GCS Upper Primary SCS Primary, SCS Upper Primary are 0.0516, 0.1697 0.0949, 0.2594 respectively. Thus, the elasticity of TE with respect to central grant is higher for the SCS and UT as compared to the GCS both in case of primary and upper primary level of education. Also elasticity of TE score is higher for upper primary as compared to primary both in case of GCS and SCS category states.

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Presentation No

85

Paper#

109

Authors:

Ahmad Battal, Hanaa Mahmeed and Wisam Ali

Speaker

Ahmad Battal

Title:

The impact of financial liberalization on the financial performance of industrial companies listed on the Iraq Stock Exchange




Abstract: This paper aims to show the effect of financial liberalization on financial performance of 20 industrial companies in Iraq by covering the period of five years from 2005 to 2009. We use data envelopment analysis to measure the financial performance, using output return to scale method. The financial liberalization represents in issues of the law of Central bank No. (57), Iraq banks No. (94) in 2004, and investment low in 2006, These laws were designed to free movement of funds and strengthen the capital market in Iraq. The results showed that the financial performance of the companies is gradually increasing, the average efficiency for companies is 0.44 in 2005, and then the average became 0.51 for the year 2009. So we conclude that there is a positive relationship between financial liberalization and financial performance of industrial companies in Iraq.

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Presentation No

86

Paper#

40

Authors:

Sandeep Kumar Mogha, Shiv Prasad Yadav and S P Singh

Speaker

Sandeep Kumar Mogha

Title:

Efficiency Assessment of Secondary Level Public Hospitals of Uttarakhand (India)




Abstract: The total potentials for improvement in the efficiency of a DMU frequently remain unrevealed by calculating radial efficiency measure by basic data envelopment analysis (DEA) models. This paper, therefore, applies a new slack model (NSM) of DEA, which directly deals with input and output slacks, to assess the efficiency of 27 secondary level public hospitals of State of Uttarakhand (India) for the calendar year 2012. The study is undertaken with 3 inputs: number of beds, number of doctors and number of paramedical staff (PMS) and 4 outputs: number of outdoor‐patients and number of indoor‐patients including two case‐mix outputs: number of major surgery and number of minor surgery received. The paper concludes that overall technical efficiency of average hospitals in the State is only 55.90% which indicates that the hospitals have a high potential for improvement. Region‐wise efficiency analysis reveals that the hospitals of Garhwal region are found to achieve relatively better efficiency score than their counterparts of Kumaon region. To examine the robustness of the results, sensitivity analysis is also conducted.

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Presentation No

87

Paper#

56

Authors:

Md. Abul Kalam Azad and Dr. Susila Munisamy

Speaker

Md. Abul Kalam Azad

Title:

Performance Measurement of Pharmaceutical Firms in Bangladeshi Capital Markets: Non‐Parametric Approach




Abstract: Pharmaceutical industry of Bangladesh is now meeting around 97% of local demand with an annual two digit growth rate. The objective of the study is to measure Scale Efficiency (SE) of Pharmaceutical industry of Bangladesh (all 9 companies operating in Capital Market) using Data Envelopment Analysis (DEA) (2006‐2012). For this, it has used one output, viz. Annual Sales, and four inputs; viz. (i) Raw material cost; (ii) Cost of salaries and wages; (iii) Cost of advertising and marketing; and (iv) Cost of Research and Development. Results of the study reveal that efficiency level of most of the firms are sub‐optimal, ranging between 67% and 78% during the study period. The larger the company seems less unit efficient. It has also been observed that the Malmquist Productivity Index (total factor productivity) has maintained a slightly upward trend during the study period.

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Presentation No

88

Paper#

135

Authors:

Roar Amundsveen, Ole‐Petter Kordahl and Tore Langset

Speaker

Ole‐Petter Kordahl

Title:

Second stage adjustment for firm heterogeneity in DEA



Room, Chair: (23) IPS Seminar Room A, Chairman: Lu Ming‐Xiang

Abstract: The main contribution in this paper is an alternative approach to implement a second stage adjustment of DEA‐scores. In the applied Norwegian regulatory model there is a need to adjust for firm heterogeneity due to differences in environmental operating conditions. The second stage is important to achieve this goal. Norway has about 138 distribution system operators (DSOs). The companies are institutional monopolies, and are regulated by the Norwegian Water Resources and Energy Directorate (NVE). NVE is a subordinate agency of the Ministry of Petroleum and Energy, and one of NVEs mandates is to promote efficient energy markets and cost‐effective energy systems. Since 1996, NVE has used Data Envelopment Analysis (DEA) as a benchmarking tool in the economic regulation of this sector. Since 2007, the regulatory model has been a hybrid model with 60 per cent yardstick regulation and 40 per cent cost plus regulation. The model is used to calculate revenue caps for each company annually. The companies face a wide variety of operating environments. Examples are urban environments with densely populated areas, coastal environments with dispersed settlements, strong winds and salt dust, and inland conditions with forests and snowfalls. These geographical and topographical factors clearly influence the cost of providing electricity services, and NVE therefore has to take these environmental factors into consideration in the yardstick regulation. The current yardstick model for the DSOs is a two‐stage model; the first stage is a DEA model with total costs as input, and three outputs. These outputs are related to network structure and demand, and represent the main cost drivers. The second‐stage is a regression model that adjusts the DEA‐scores from the first stage for five environmental factors. The most common second stage approach is to use a tobit regression. The alternative approach presented here utilize more of the information from stage 1 in order to provide better estimates of the influence of heterogeneity. The dependent variable in the second stage regression is the DEA‐scores from the first stage, but bias corrected using bootstrapping. This approach meets the criticism of serial correlation of DEA‐scores by Simar and Wilson (2007). Further, the independent variables are the difference between the value for each company and its corresponding target. In DEA, the target is constructed using the peers’ reference weights multiplied with the outputs or the environmental variables. The paper will contain a more detailed description of this alternative approach, and the results will be compared with the results from more traditional approaches.

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Presentation No

89

Paper#

206

Authors:

Mani Yogeswari and M Susila

Speaker

Mani Yogeswari

Title:

Privatisation and Productivity in the Malaysian Water Industry: A Malmquist Index Approach




Abstract: This study undertakes an empirical analysis of efficiency and productivity in the Malaysian water industry by employing the technique of non‐radial Data Envelopment Analysis(DEA) using the Slack Based Measure(SBM) and Malmquist Productivity Index(MI). Overall, the analysis finds that the average efficiency of the water industry in Malaysia is about 68% and there has been an average productivity loss of 18.5% throughout the whole analysis period from 1999 to 2010. Technical efficiency change improved by 7.7% while technological change declined by 24.2%. This suggests that the productivity was driven by technical efficiency changes over the analysis period. This implies that there is significant room for improvements in overall efficiency and productivity in the Malaysian water industry. Process of restructure and Eighth and Ninth Malaysian Plan have shown positive evolution however, no obvious evidence that private ownership is more successful than public ownership and corporate structure. The problem of high non‐revenue water(NRW) has also made water industry an important area for research. NRW was incorporated in the measurement of the efficiency and productivity so that water utilities will be driven to take necessary action to handle this daunting issue. Targets have been set for non‐revenue water to assist policymakers and water managers to reduce their water leakage to operate at an economic leakage level to be more efficient and productive. Overall, it is expected the statistical findings from this study will be a guide to solve many enduring and recurring issues within water industry.

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Presentation No

90

Paper#

258

Authors:

Ming‐Xiang Lu, Jing‐Ji Zheng and Dai‐Yin Xie

Speaker

Lu Ming‐Xiang

Title:

Research on Industrial Structure Efficiency of Energy Based on DEA




Abstract: The paper builds an evaluation model using the Data Envelopment Analysis (DEA) to measure the industrial structure efficiency of energy based on output‐orientated measures in output structure (OOS Model). The OOS Model develops by the OSS Model (based on output‐orientated measures in single‐input and single‐output) and the OSM Model (based on output‐orientated measures in single‐input and multi‐outputs). Specifically, the output structure efficiency (OSE) – defined as the ratio of technical efficiency (TE) scores of the OSS model over the OSM model – will be used to evaluate the industrial structure efficiency of energy. The results show that the OSE score takes a value between zero and one. The energy efficiency can be improved by optimizing the related industrial structure according to the OSE score.

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Presentation No

91

Paper#

289

Authors:

Abdullahi Iliyasu, Zainal Abidin Mohamed, Mansor Mohamed Ismail and Abdullah Amin Mahir

Speaker

Abdullahi Iliyasu

Title:

Slacks‐Based Measure of Efficiency in Malaysian Freshwater Aquaculture Data Envelopment Analysis Approach




Abstract: The study aims to estimate technical efficiency and investigate determinants of inefficiency in the Malaysian fresh water aquaculture. Three states out of eleven were purposely selected for this study. Data were collected using structured questionnaires and face to face interview with 210 fish farmers in a total of nine districts within the three states. Data Envelopment Analysis (DEA) was employed to estimate radial and non‐radial efficiency. The non‐radial measures of efficiency deals with slacks directly and is called slacks‐based measure of efficiency (SBM). On the other hand, the traditional radial measures (TRM) of efficiency don’t take into account of the existence of slacks. Hence, the study aims to provide answer to the following research question. Do the results from the two measures of efficiency differ significantly? In order to provide answer to the question, T‐test was used to compare the mean differences of SBM and TRM. Ordinary Least Square (OLS) regression is also employ to investigate factors affecting technical inefficiency. The findings show that the estimated means SBM and TRM are 0.84 and 0.90, respectively. This implies that the sample fish farmers can still reach full technical efficiency by decreasing their inputs by further 16% (SBM) and 10% (TRM) and continue to produce the same levels of output with the existing technology. The results revealed that statistically significant differences exist between efficiency scores estimated using SBM and TRM. The factors; experience, education, family size, extension visits, workshop attended, job status, distance from feed supplier, and good aquaculture practices (GAP) are found to be statistically significant. This implies that all these factors have positive impact on technical efficiency. However, the parameters age and farm status have no significant impact on technical efficiency base on the evidence obtained from this study.

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Presentation No

92

Paper#

64

Authors:

Engku Elini Engku Ariff, Stephen Ramsden and Neil Crout

Speaker

Engku Elini Engku Ariff

Title:

Assessing Technical Efficiency of Rice Production in Selected Granary’s in Malaysia: An Application of Data Envelopment Analysis (DEA)

Track: Poster Session ‐9:00‐1230

Date Time: Wednesday April 16th

Room, Chair: (24) IPPP Exhibition Hall

Abstract: One of the many challenges to agriculture generally is how to manage higher input costs: labour, fertilizer, pesticide, machinery and equipment maintenance costs, among others. In Malaysia, as in other countries farm costs and outputs are highly variable, suggesting that there is some scope for improving the efficiency of production. In this paper we focus on technical efficiency associated with rice producing farms in three granary areas in Malaysia. Technical efficiency was measured using the input‐oriented DEA approach where inputs are minimised for a given level of rice yield. Primary data for a season of rice production were collected in 2010/ 2011 with the main season starting from October 2010 and running until February 2011; sample size was 100 farmers for each of three granaries. The first granary was MADA situated at the north of Peninsular Malaysia was a main granary which contributed 60% from the overall paddy production in Malaysia. The second granary was KADA which was the second largest granary area situated at the west of Peninsular Malaysia and the last granary was North West Selangor (PBLS) which contributed the highest yield per hectare in Malaysia. Results showed that, under the constant returns to scale assumption, granaries could increase their average output by between 26.6% and 34.8%. Among the three granaries, KADA showed the lowest average technical efficiency, but 14 farms was efficient as compared to PBLS and MADA which had only nine and 5 farms respectively 100% efficient. In line with other studies (Begum et al., 2009; Bhagavath, 2009), it indicates that results under variable returns to scale assumptions generated a higher level of average efficiency than under constant returns. Average scale of efficiency showed a value of less than 1 for all granaries, indicating that most of the farms were not making efficient use of their inputs.

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Presentation No

93

Paper#

231

Authors:

Jaber Alyami, Stephen Ramsden and Paul Wilson

Speaker

Jaber Alyami

Title:

Estimating Cost Efficiency (CE) and Allocative Efficiency (AE) of the Flour Mills of the Grain Silos and Flour Mills Organisation (GSFMO) in Saudi Arabia




Abstract: The Grain Silos and Flour Mills Organisation (GSFMO) is one of the leading agricultural organisations in terms of food security in Saudi Arabia. In addition, the organisation monopolises the country's milling industry. However, the organisation has been facing financial problems for a number of years. Also, there is variation in the human and machine productivity between all branches, as well as rising costs over time. The aim of this paper is to estimate the Cost Efficiency (CE) and Allocative Efficiency (AE) of the nine flour mills of the GSFMO (1990‐2011), using Data Envelopment Analysis (DEA) and to explain variation in efficiency levels between the mills. Both primary data (interviews with branch managers) and secondary data from GSFMO were utilised. Results show that under constant return to scale (CRS), Aljouf branch has the lowest in mean CE (54.75%) and Qassim branch has the lowest in mean AE (56.76%). However, the highest scores were (63.13%) and (66.51%) for both CE and AE for Riyadh branch respectively. On the other hand, under input orientated variable returns to scale (VRS), Qassim has the lowest CE (56.29%) and AE (58.55%) scores. In terms of the highest score for CE and AE under VRS input orientated, Riyadh branch scored (67.67%) and (70.24%) respectively.

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Presentation No

94

Paper#

329

Authors:

Ming Lei, Xiaowen Yu, Honghui Deng and Xinan Zhao

Speaker

Presenter:

Title:

Analysis of Energy‐Economy‐Environment Total Factor Productivity Based on Intersectoral Linkage: An Application of Dynamic Network Malmquist Index




Abstract: By introducing carry‐overs and linkages into traditional Malmquist, this paper proposes a dynamic network Malmquist productivity index(DNMPI), and then suggests a decomposition method to separate the dynamic effect of carry‐overs and network effect of linkages from the index. We apply the proposed approach to analyze the Energy‐Economy‐Environment total factor productivity growth on industrial level in China based on the green accounting and Input‐Output table. Capital stock and intermediate trades among industries are considered as carry‐over and linkages respectively.

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Presentation No

95

Paper#

205

Authors:

Jeronimo G. R. Monteiro

Speaker


Title:

Measuring Productivity and Efficiency of Seaports in India via Data Envelopment Analysis




Abstract: India’s major ports are the driving force behind India’s international trade. Ninety per cent of India’s overseas trade in volume and seventy five per cent in value terms are done through seaports (GOI, 2006). India has 12 major ports along its coast of nearly seven thousand five hundred kilometers. Non‐parametric technique (Data Envelopment Analysis (DEA)) is used to measure the productivity and efficiency of seaports (major ports) of India. This study has two principal objectives. The first objective is to measure and compare the efficiency of the seaports of India using DEA approach. The second objective is to illustrate DEA approach which is being widely used in the context of Major ports of India. The result of this study gives us an interesting outcome of seaports efficiency scores during the study period 1996‐97 to 2007‐08.

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Presentation No

96

Paper#

279

Authors:

Yasser Jafari

Speaker

Yasser Jafari

Title:

Classification of Decision Making Units into a number of optional levels


Date Time: SESSION 5 (Parallel)Thursday April 17th9:00‐10:30

Room, Chair: (26) IPPP Auditorium, Chairman: Victor Podinovski

Abstract: Data Envelopment Analysis (DEA) is a method for performance evaluation of Decision Making Units (DMUs). There are different methods of computing the efficiency of units that classify DMUs into efficient and inefficient units and more precisely, it is possible to classify units into those of Most Productive Scale Size (MPSS) and weak efficient and/or efficient extreme and non‐extreme points. This paper is an attempt to present a method for the new classification of units into a definite number of levels that can have many applications. To see this, the distance from a unit with the lowest efficiency will be a criterion for classification. The main method will be represented and finally one example will be given for the method.

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Presentation No

97

Paper#

49

Authors:

Victor Podinovski

Speaker

Victor Podinovski

Title:

Weight restrictions and infeasible DEA models




Abstract: It is well‐known that the incorporation of weight restrictions in DEA models may lead to their infeasibility. It is less known that are other irregularities that weight restrictions may induce. For example, the use of weight restrictions may also lead to zero or finite negative efficiency of some units. We show that all such problems with weight restrictions occur when the latter induce free or unlimited production in the underlying technology. Based on this, we present simple methods that detect any of the above problems, even if these are not apparent from the results.

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Presentation No

98

Paper#

85

Authors:

Vsevolod Petruschenko and Fuad Aleskerov

Speaker

Vsevolod Petrushchenko

Title:

DEA by sequential exclusion of alternatives




Abstract: Data Envelopment Analysis is a well‐known non‐parametric technique of efficiency evaluation which is actively used in many economic applications. However, DEA is not very well applicable when a sample consists of firms operating under drastically different conditions. Generally, it is difficult to define to what extent the analyzed sample is heterogeneous. We offer a new method of efficiency estimation based on a sequential exclusion of alternatives and standard DEA approach. This allows to assess efficiency in the case of heterogeneous set of firms. We obtain a connection between efficiency scores obtained via standard DEA model and the ones obtained via our algorithm. We also evaluate 29 Russian universities and compare results obtained by two techniques.

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Presentation No

99

Paper#

94

Authors:

Emine Demet Mecit and İhsan Alp

Speaker

Emine Demet Mecit

Title:

The Comparison of CCRCOR Model with Some Other Models




Abstract: Data Envelopment Analysis (DEA) is linear programming method to measure the efficiency of Data Making Units (DMUs). There is a flexibility to select weights of each input and output to maximize the efficiency of the DMU under evaluation in DEA. Sometimes zero weights are assigned for the inputs and/or outputs by DEA. So, unrealistic results can be obtained. The problem is eliminated by weight restrictions in DEA. Therefore, CCRCOR model constrained with correlation coefficients was initially proposed in articles (“Mecit, E.D. and Alp, İ. (2012). A New Restricted Model Using Correlation Coefficients as an Alternative to Cross‐Efficiency Evaluation in Data Envelopment Analysis. Hacettepe Journal of Mathematics and Statistics 41(2), pp. 321‐335.” and “Mecit, E.D. and Alp, İ. (2013). A New Proposed Model of Restricted Data Envelopment Analysis by Correlation Coefficients. Applied Mathematical Modelling 37(5), pp. 3407‐3425.”) In this study, the CCRCOR model and other models (CCR, Assurance Region I (ARI), Cross Efficiency) were compared. For this comparison artificially generated data set was used. The empirical results were checked with the Spearman rank test and the Pearson correlation test. Thus, best results were obtained by the CCRCOR model, rather than the other models, for a balanced weight distribution.

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Presentation No

100

Paper#

23

Authors:

Fekri Ali Shawtari, Mohamed Ariff Abdul Kareem and Shaikh Hamzah Abdul Razak

Speaker

Fekri Ali Shawtari

Title:

Efficiency Assessment of Banking Sector in Yemen using Data Envelopment Window Analysis (DEWA)



Room, Chair: (27) IPPP Seminar Room 1, Chairman: Sebastián Lozano

Abstract: This paper utilizes a two‐stage approach to analyse the banking industry’s efficiency using the case of Yemen. In the first stage, data envelopment window analysis (DEWA) to evaluate the efficiency is used for the period 1996‐2011. Furthermore, the paper addresses, in two‐dimensional matrix, the stability and efficiency of the banking sector in order to assess their ability for survival. In the second stage, panel data analysis is applied to regress the impact of banks‐specific and macro‐economic variables on the efficiency of the banking sector in Yemen. The findings of the investigation indicate that the Yemen banking industry in general was on a declining trend with increased instability during the later period of the investigation. In addition, the study shows that most conventional banks were relatively stable, though inefficient, while Islamic banks were more efficient over the time. The results of panel data regression further suggest that efficiency is related to a number of determinants. Loan/financing, deposits and profitability are the common key determinants of efficiency for both Islamic and conventional banks. However, other determinants have impacted differently for Islamic and conventional banks, which could reflect the uniqueness of their operation and structure. The present study provides a basis for the regulators and bankers to assess the viability of the banking sector and proposes policies to restructure the industry in order to enhance the performance of the whole industry.

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Presentation No

101

Paper#

253

Authors:

Hocine Hanafi and Moussa Larbani

Speaker

Moussa Larbani

Title:

Improving Discrimination Power DEA through Two‐Stage Multi‐objective DEA: Malaysian Banks as an Illustration.




Abstract: *Hocine Hanafi and **Moussa Larbani *Department of Economics, IIUM University, Jalan Gombak, 53100, Kuala Lumpur, Malaysia. Email: [email protected] **Department of Economics, IIUM University, Jalan Gombak, 53100, Kuala Lumpur, Malaysia. E‐mail: [email protected] Conventional data envelopment analysis (DEA) allows decision makers to distinguish between efficient and inefficient decision making units (DMUs) in a homogeneous group, and determines the optimal weight for a set of inputs and outputs. The obtained weights mostly differ from one unit to another, which consequently prevent the comparison among DMUs on a unified base and thus ranking them under the same scale. The Conventional DEA lacks discrimination power to fully rank all the DMUs particularly the efficient ones. This study proposes a two stage model for improving discrimination power of DMUs, which allows decision makers to rank them. The study focuses on measuring the technical, pure technical and scale efficiency only. In the first stage, a multi‐objective DEA based on Compromise Solution is applied to determine the efficiency of the DMUs and rank them based on a set of common weights. In the second stage, a statistical analysis is conducted to study the robustness of the first stage results. An application of the proposed model using a sample of 20 commercial Malaysian banks illustrates its discrimination power and robustness compared to the traditional DEA model. A full ranking of these banks is derived. It is important to note that the multi‐objective DEA approach has never been used to study the efficiency of banks.

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Presentation No

102

Paper#

50

Authors:

Shazida Jan Mohd Khan, Shamzaeffa Samsudin and Raj Yadaf

Speaker

Shazida Jan Mohd Khan

Title:

Asian Banking Performance: A Meta‐frontier Approach




Abstract: This study examines the performance of selected Asian countries in the period of 1999 – 2012. We evaluate bank efficiency in Indonesia, Korea, Malaysia, Philippines and Thailand by means of Data Envelopment Analysis and we employ a meta‐frontier approach to calculate efficiency scores in a cross country setting. We then employ a second stage regression to investigate the impact of institutional, financial and bank specific variables on bank efficiency. Overall, the analysis were expected to show that despite similarities in the process of financial reforms undertaken in the selected countries, the observed efficiency levels of banks may vary substantially across the country. The inclusion of other environmental variables and differences in technology is essential in explaining the differences. The analysis may help the regulatory and supervisory bodies in implementing better management and incentives in order to reduce the inefficiency. Classification Number: G21, G28, L11

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Presentation No

103

Paper#

9

Authors:

Sebastián Lozano

Speaker

Sebastian Lozano

Title:

Applications of Network DEA to transportation




Abstract: Data Envelopment Analysis (DEA) has been applied in many efficiency and benchmarking studies in the transportation sector. Conventional DEA models consider the system as a single‐process black box. There are however a number of so‐called Network DEA approaches that consider the system as composed by distinct processes or stages, each one with its own inputs and outputs and with intermediate flows among the stages. In this research, the existing Network DEA applications to transportation are reviewed and categorized. The strength of Network DEA approach is that it has more discriminating power than the single‐process DEA approach and that the targets and efficiency scores computed and the derived rankings are thus more valid. This is because network DEA allows for a more fine‐grained analysis that leads to a more realistic estimation of the overall system production possibility set than the one assumed by conventional DEA. Compared with Network DEA the conventional, single‐process DEA represents an aggregated analysis that merges all the system processes with their inputs and outputs and ignores the internal flows. Network DEA also has drawbacks such as the need for more detailed data (i.e. at the process level) and the greater complexity of the resulting models, specially if there are inputs or outputs that are shared among the processes.

Page 107 of 172


Presentation No

104

Paper#

142

Authors:

Mohsen Afsharian and Heinz Ahn

Speaker

Mohsen Afsharian

Title:

Managerial Efficiency in a Centralized Framework ‐ A DEA Controlling Approach with an Empirical Illustration to German Saving Banks



Room, Chair: (28) IPPP Seminar Room 2, Chairman: Nurhan Davutyan

Abstract: German savings banks are credit institutions under public law whose aims are supporting the local municipalities and regional associations in their obligation to facilitate economic development, regional policy and social as well as cultural programs. German savings banks operate independently and are locally administrated by their own management boards. Furthermore, they are also controlled centrally by the German Savings Banks Association (Deutscher Sparkassen‐ und Giroverband, DSGV). DSGV is the umbrella organization responsible for coordinating decision making within the group, determining strategic directions and making general policy decisions as well as monitoring the activities of the banks. This paper presents a DEA controlling approach for measuring the relative efficiency of German savings banks where a network structure of the production process is taken into account. Within this framework, some variables are controlled by DSGV as a kind of central management to promote efficiency and effectiveness with regard to the corporate strategy and overall goals of the organization. Hence, the proposed approach is extended to a multi‐objective DEA method in a way that a desired structure (e.g., DSGV’s preference) concerning the potential improvement of inputs and outputs can also be incorporated. The application of the approach shows a reliable evaluation on German saving banks which can produce persuasive results for both banks and the central management to promote efficiency and identify weakness and future improvement directions.

Page 108 of 172


Presentation No

105

Paper#

226

Authors:

Prof Dr Izah M Tahir and Siti Nurzahira Che Tahrim

Speaker

Siti Nurzahira Che Tahrim

Title:

Efficiency and Productivity Analysis of Microfinance Institutions in Indonesia: A DEA Approach




Abstract: This paper employs Data Envelopment Approach (DEA) and Malmquist Productivity Index (MPI) to examine the efficiency and productivity of Indonesian microfinance institutions during the period 2008‐2011. We found that the microfinance institutions in Indonesia have exhibited an overall efficiency of 87% during 2008‐2011 suggesting an input waste of 13%. In terms of the productivity, the results suggest that the MFIs in Indonesia have exhibited productivity regress of 0.1% during the period 2008‐2009, 4.7% during 2009‐2010 and 0.3% in 2010‐2011. The decline in the productivity of the MFIs in Indonesia in 2008‐2009 was mainly attributed to the decrease in efficiency change of 2.2%. In 2009‐2010, the decline is also attributed to the decrease in Efficiency Change of 3.1%. However, in 2010‐2011, the regress is attributed to the decline of 4.1% in Technological Change. The decomposition of the Efficiency change into Pure Technical Efficiency and Scale Efficiency Change suggest that dominant source of efficiency was pure scale related rather than pure technically related implying that MFIs have been operating at optimal scale of operations but relatively inefficient in managing their operating costs.

Page 109 of 172


Presentation No

106

Paper#

322

Authors:

Dhimant Ganatra and Dinesh Kumar U

Speaker

Dhimant Ganatra

Title:

Evaluating Performance of Mutual Funds using Data Envelopment Analysis




Abstract: Indian mutual fund industry has come a long way from its humble beginning in 1963. The Assets Under Management (AUM) as on November 30, 2013 stood at Rs.8.9 Trillion divided among 44 Asset Management Companies spread across several schemes. This wide array of choices makes it extremely important that investors should be able to distinguish between efficient and inefficient mutual funds. This paper proposes Data Envelopment Analysis (DEA), a nonparametric approach, for the evaluation of mutual fund performance. DEA is a mathematical programming method for evaluating the relative efficiency of decision making units with multiple inputs and outputs. DEA determines an efficiency score, which can be interpreted as a performance measure and can be used to separate efficient mutual funds from the inefficient. Using the DEA methodology, we calculated an efficiency score for Equity: Large cap and mid cap funds. The annual data for each fund includes Expense Ratio, 1‐Year Return, Net Assets, Operation Period, Standard Deviation, Sharpe Ratio, Sortino Ratio, Beta, Alpha and Fund Manager’s Tenure. The results are compared against the fund ratings provided by Value Research. Efficient funds are further ranked by Anderson Peterson Model. Finally, the extent and causes of weaknesses of each fund are identified.

Page 110 of 172


Presentation No

107

Paper#

72

Authors:

Nurhan Davutyan and Canan Yildirim

Speaker

Nurhan Davutyan

Title:

Efficiency and Competitiveness in Turkish Banking




Abstract: Using a novel approach, we derive “shadow unrealized profit scores” as well as “shadow input‐output prices” for each year and bank in the Turkish banking sector from 2002 to 2011. We demonstrate these scores operationalize the Hicksian concept of “monopolistic quiet life.” We provide some evidence the sector came closer to the “zero profit condition” as well as displaying a closer approximation to the “law of one price” over time. We show the variability of these “shadow prices” essentially coincides with that of corresponding actual prices. We utilize shadow price information to show banks’ competitive choices differ based on their ownership structure. We undertake second stage regressions and find foreign banks outperform their private Turkish counterparts. Large banks are much more efficient compared to medium and small ones. Asset quality turns out to have a consistently strong and positive impact on performance

Page 111 of 172


Presentation No

108

Paper#

181

Authors:

Maria Isabel Pedro, Pedro Carvalho and Rui Marques

Speaker

Maria Isabel Pedro

Title:

Assessing the Performance of Brazilian State owned water utilities



Room, Chair: (29) IPPP Video Conference Room, Chairman: Razamin Ramli

Abstract: Water and wastewater utilities are essential services but they usually tend to present high levels of inefficiency, incurring in high operation costs and consequently charging excessive prices to customers. This research aims to estimate the efficiency of the water and wastewater utilities in Brazil and investigate which groups of utilities are the most efficient. It is also investigated if the regulatory framework occurred in Brazil in 2007 had an influence on the efficiency of water and wastewater utilities. To identify the most efficient groups of utilities it was used the recent statistical test suggested by Simar and Zelenyuk (2006) which allows to compare the DEA non‐parametric efficiency scores distribution of the various groups of utilities. The results obtained in this study indicate significant levels of inefficiency in Brazilian water and wastewater utilities. We found that utilities that provide both water and wastewater are more efficient than those that provide only water; the regional utilities are the most efficient, followed by the local and finally the micro‐regional utilities; the largest exhibit better performances than the smallest utilities and utilities with private participation in their capital tend to be more efficient.

Page 112 of 172


Presentation No

109

Paper#

293

Authors:

Norbaizura Kamarudin and Wan Rosmanira Ismail

Speaker

Norbaizura Kamarudin

Title:

Assessing Efficiency and Effectiveness of Malaysian Water Services: A Data Envelopment Analysis Approach




Abstract: Performance assessment of water supply and wastewater industries has been an interesting topic since two decades ago. Various methods and models has been proposed to evaluate the performance of the water sector such as model based on key performance indicators (KPI) or the use of mathematical models. Data envelopment analysis (DEA) is quite a popular mathematical model that has been used in numerous studies to evaluate the performance of water services all over the world. However, most recent studies concerned only on operational efficiency but rarely on the effectiveness of water sector industries. Since the production process of water services can be expressed as a two‐stage process, we proposed the used of two‐stage DEA model that can be adapted for measuring the water services performance. This model allows integration of the efficiency and effectiveness of the water services and provides overall performance evaluation of Malaysian water services. The result is expected to see the correlation between these two indicators.

Page 113 of 172


Presentation No

110

Paper#

51

Authors:

Charlotte Pointon

Speaker

Charlotte Pointon

Title:

Measurement of Dynamic Efficiency in the English and Welsh Water and Sewerage Industry




Abstract: The English and Welsh water and sewerage industry is characterised by indivisible capital which has a long service life. Capital is considered within the paper as a quasi‐fixed input which cannot be adjusted immediately and has intertemporal effects along the production function. Previous studies within the English and Welsh water and sewerage industry examine efficiency within the static context, assuming inputs can be adjusted instantaneously and there are no links between consecutive time periods. This paper examines the implications of measuring dynamic efficiency through incorporating intertemporal links of capital within the production function within the English and Welsh water and sewerage industry for the period 1995‐2011. The paper follows Nemoto and Goto (2003), capital is modelled as a contemporaneous output in today’s production and an input from yesterday’s production. The results report that the inadequate intertemporal allocation of quasi‐fixed inputs is the largest contributor of inefficiency. The deviation over time of inefficiency from the optimality conditions reveals a persistent overuse of capital. The ignorance of intertemporal effects within the static model leads to an over‐estimation of allocative inefficiency.

Page 114 of 172


Presentation No

111

Paper#

96

Authors:

Minzhe Du and Bing Wang

Speaker

Minzhe Du

Title:

Sources of Chinese Economic Growth under Restrictions of Resource and Environment—An Empirical Analysis Based on a New Biennial Malmquist Index with Green Growth Accounting




Abstract: Based on green growth accounting framework, this paper develops a biennial Malmquist index that uses the additive form to measure the sources of economic growth by utilizing data envelopment analysis (DEA) method and the directional distance function(DDF). Taking the restrictions of resource and environment into account, we decompose economic growth into seven components: technical efficiency change, technological change, labor effect, capital effect， energy effect, output structure effect and environmental regulation effect. Then the proposed index is compared to both the adjacent Malmquist index and the sequential Malmquist index at the provincial level in China between 1998 and 2010. The empirical results show that labor and total factor productivity(TFP) are not significant for economic growth; The improvement of output structure is conducive to economic rapid growth; The contribution of energy and environmental regulation initially increase and then decrease; Overall, Chinese economic growth mainly depends on capital accumulation.

Page 115 of 172


Presentation No

112

Paper#

164

Authors:

Sang‐Mok Kang, Moon‐Hwee Kim and Jiyoung Kong

Speaker

Jiyoung Kong

Title:

Cost Efficiency of Regional Public Hospitals in South Korea

Track: Hospital and Health care


Room, Chair: (30) IPS Auditorium, Chairman: Maria Portela

Abstract: The purpose of this study is to analyze the cost efficiency of 34 regional public hospitals in South Korea from 2007 to 2010 utilizing DEA. First of all, it estimates the cost efficiency, allocative efficiency, and technical efficiency. Moreover, it examines the scale efficiency. The overall efficiency, allocative and technical efficiency are 0.52, 0.71, and 0.74, respectively. It implies that although more than half of the hospitals are allocatively and technically efficient, they have not been equally good at selecting the cost‐minimal input mix. To increase their efficiency, they need to attract patients actively through the improved level of medical service, and supporting actively financially not only from the government but also from municipalities. In addition, keeping the close cooperation with private hospitals and benchmarking the efficient hospitals, in terms of specialization, rational management, and service improvements could contribute to their efficiency.

Page 116 of 172


Presentation No

113

Paper#

167

Authors:

Chandrima Chakraborty and Arpita Ghose

Speaker

Chandrima Chakraborty

Title:

Input Oriented Technical Efficiency And Input Slack Of Indian Pharmaceutical Industry: Evidence From Non Parametric Data Envelopment Analysis




Abstract: Detailed Abstract The Motivation and the Objectives Indian Pharmaceutical Industry (IPI) has expanded drastically in the last few decades. It has come a long way since the time of independence when the industry was dominated by MNCs. The period after 1990s saw significant changes in this sector with introduction of trade liberalization measures and signing of TRIPS agreement. Both production and export have grown remarkably fast (Chaudhuri 2005). IPI has emerged as a global player in the pharmaceutical industry. Since provision of pharmaceutical goods at an affordable price is a major concern, increase in efficiency of this sector is very important. Given the high growth of this industry it will thus be interesting to accesss the performance of IPI. One of the available indicators of measuring performance of the industry may be the index of Technical Efficiency (TE). TE can be of two types‐Output oriented TE and Input oriented TE. The present study uses the idea of Input oriented TE. The perusal of the literature suggests that few studies are available regarding estimation of Technical efficiency (TE) of IPI using DEA. (Majumder (1994), Majumdar and Rajeev (2009), Mazumdar, Rajeev and Ray (2010), Saranga and Banker (2010), etc.) The major contributions of the present study to the existing literature are as follows: • The present study might be the first attempt to look into TE of IPI after 2005 • Most of the earlier studies tried to find out the factors influencing Output‐oriented TE of IPI, whereas the present study tries to explain the behavior of Input‐oriented TE. The literature dealing with the explanations of the factors influencing input oriented measure of TE is practically nonexistent. One of the major characteristic of IPI is that the industry produces either bulk drugs or formulation activity or both. Thus there exists the situation of vertically integrated firms. So the basic question is which of these firms producing only bulk drugs or only formulation or both formulation and bulk drugs are more efficient over the others. Another important characteristic of these IPI is that they import a lot for the purpose of re‐export. So there is a possibility of joint influence of export and import together. Considering these characteristics the paper uses export intensity, import intensity, Market size , R&D expenditure, marketing expenditure and Capital‐Labour ratio as possible determinants of input oriented TE along with the dummy variable for formulation and for formulation and bulk drugs.The explanation for inclusion of these variables are: Firms which are incurring more R&D expenditure can increase their technical efficiency by expanding their knowledge. Again by spending on marketing expenditure a firm can increase its market share. Hence sales increases and the firm may try to increase its production with more efficient technologies. The positive linkage between Capital‐Labour ratio and TE may imply that the industry perhaps is conducive for capital‐intensive production process. Market size has positive role on the TE which implies that an increase in market size will improve TE of IPI may be due to easier access of quality inputs and getting advantage of scale economies. Units which are enjoying more export per unit of output are more efficient than others. In other words the producing units whose export per unit of output is more are learning suitable measures to improve their efficiency level. One of the purposes of doing import is to carry out the re‐export process which may positively affect TE.So there may be the joint influence of export and import on technical efficiency. In the present study we test whether vertically merged firms are doing well in terms of Input‐oriented TE compared to the firms not merged vertically by incorporating dummy variable for formulation and both for formulation and bulk drugs. Methodology and Data Sources The input oriented technical efficiency is estimated by employing the nonparametric approach of Data Envelopment Analysis (DEA) and using firm level panel data from 2000 to 2011 in a single‐output, multi‐input model. The input‐oriented measure of technical efficiency of

Page 117 of 172


any firm t under CRS requires the solution of the following LP problem Subject to (r=1,2……..g) (i =1,2………h) free, (j=1,2………..N) ……1 The input‐oriented technical efficiency of firm t under CRS is …..2 Where Thus knowing by solving equation (5) input oriented TE of firm t can be determined by using equation (6) The input oriented measure of TE of any firm t under VRS can be determined by solving problem (1) along with the constraint , taking into consideration the VRS frontier. For determination of the factors influencing TE different types of factors like infrastructural, institutional, economic and demographic have been taken. A panel regression analysis has been used for finding out the determinants of TE and the model is adjusted for contemporaneous correlation (across units) and cross section heteroscedasticity. The inputs considered are: (i) labour (ii) capital (iii) raw material and (iv) power and fuel. The present study uses CMIE Prowess data base and those firms are selected for which all the data of inputs and outputs and the determinants are positive. On the basis of this fact, 90 firms has been selected. Empirical Result • The result suggests that the input oriented technical efficiency of IPI gradually increased from 0.355 in 2000 to 0.472 in 2010 but after that it decreased to 0.338 in 2011. The mean input oriented technical efficiency of IPI is 0.442. The input oriented technical efficiency is found to be maximum for Biological E. Ltd. ( i.e. 0.9512) and minimum in case of B. D. H. Industries Ltd. (i.e., 0.0394). • It is found that about 60% of the firms has input oriented technical efficiency less than 0.5 whereas it is greater than 0.5 in case of only 40% firms. For 28 % firms this efficiency is greater than 0.6 and for 14% firms, efficiency is greater than 0.8. Only 3% firm has the input oriented technical efficiency which is greater than 0.9. • Along with the radial movement many firms have also experienced slack movements for various inputs. The extent of total inefficiency in input utilization can be estimated by taking into account the total movement i.e. the combined effect of both radial and slack movement. In case of capital, raw material and power and fuel the total radial and slack movement of input gradually decreased from 2000 to 2011 implying that the input oriented TE of IPI have increased for those inputs. But for labour the same is gradually increased implying that the input oriented technical efficiency of labour has decreased during 2000 to 2011. •The determinants R&D expenditure, Marketing expenditure, Capital‐Labour ratio and market size and export have positive and significant influence on the input oriented technical efficiency. The positive linkage between Capital‐Labour ratio and TE may imply that this industry perhaps is conducive for capital‐intensive production process. This implies that small‐sized firms can gain efficiency by merging. This result is in tune with Mazumdar, Rajeev & Ray (2010). •In IPI one of the purposes of doing import is to carry out the re‐export process. Although the sole effect of import intensity on input oriented TE of IPI is negative and statistically significant but the joint effect of export and import has a strong positive and statistically significant influence on input oriented TE of IPI. Thus, the net marginal effect of import is in turn positive as depicted by the partial elasticity value (0.02). •Also this study pointed out that vertically integrated firms involved in both bulk drugs production and formulation activities are less efficient in terms of input oriented TE compared to firms that produces only bulk drug or are involved in formulation activity. Through vertical integration a firm is supposed to reduce the usage of inputs by large amount compared to those firms whose are not vertically integrated. But the result obtained may be due to the fact that in post TRIPS period vertically integrated firms may not initiate the manufacturing of new drugs as they did earlier and hence input oriented TE falls for those firms compared to firms producing only bulk drug or are involved in formulation activity. Our result is in tune with Chaudhuri et al (2010).

Page 118 of 172


Presentation No

114

Paper#

250

Authors:

Maria Portela, Ana Camanho, Sofia Silva, Diogo Almeida, Ricardo Castro and Luiz Lopes

Speaker

Maria Portela

Title:

Benchmarking Portuguese Hospitals through a web based Platform (HOBE)




Abstract: In a context of international economic crisis the increased efficiency and productivity of public services is seen as a way to maintain quality levels at reduced costs. Increased productivity can be achieved through benchmarking exercises, where a set of key performance indicators (KPIs) are compared between production units. This paper describes a benchmarking platform called HOBE, which compares public hospitals in Portugal. This platform allows hospitals to have on‐line access to a set of indicators based on which each hospital can be compared with its peers (the comparative set of hospitals can be customized). The platform allows benchmarking from a managerial perspective where cost and volume indicators (each subdivided into resources and outputs) are available and can be computed for each service of the hospital. The platform allows the benchmarking between services on individual indicators and also on aggregate indicators. Aggregate service indicators are constructed based on Data Envelopment Analysis (DEA) cost models and allow the consideration of trade‐offs between outputs (something that individual indicators cannot deal with). Aggregate hospital efficiency is also addressed, where we propose a model to aggregate the performance of a set of hospital services into a single performance measure at the hospital level. Some results are presented for the trial years of 2008 and 2009, for which data is publicly available.

Page 119 of 172


Presentation No

115

Paper#

53

Authors:

Varun Mahajan, D.K. Nauriyal and S.P. Singh

Speaker

Varun Mahajan

Title:

Total Factor Productivity Growth of Indian Drug and Pharmaceutical Industry




Abstract: This paper examines the total factor productivity (TFP) of Indian drug and pharmaceutical firms among different groups from 2000 to 2010 which cover both the pre and post product patent era through Data Envelopment Analysis (DEA) based Malmquist Productivity Index (MPI) approach. Our analysis is based on a panel data set of 141 firms collected from PROWESS database of CMIE. Overall there has been less variation in mean OTE and PTE scores except in 2004‐05 and this overall inefficiency can be mainly due to inefficient performance of smaller firms. In order to identify the sources of TFP change, technical efficiency change (catch‐up effect) and technical change (frontier shift) for each firm over the study period are also measured. The comparative analysis of productivity change was done on the basis of ownership, R&D, size and product‐wise. The decomposed TFP index shows the observed growth in productivity change which is explained by efficiency change and technology change over the study period. The average productivity change of R&D firms is found to be higher than non‐R&D firms.

Page 120 of 172


Presentation No

116

Paper#

15

Authors:

Tomas Balezentis

Speaker

Tomas Balezentis

Title:

Application of the Robust Frontiers for Measurement of the Efficiency of Lithuanian Family Farms

Track: Agriculture


Room, Chair: (31) IPS Seminar Room A, Chairman: Francisco Daladier Marques Junior

Abstract: Estimation of the farming efficiency constitutes an important issue related to the policy analysis. However, the efficiency of Lithuanian family farms has not been analysed by the means of the robust frontiers yet. The paper aimed at analysing the patterns of efficiency of the Lithuanian family farms with respect to the uncertain data. The latter aim was achieved by the virtue of the probabilistic production functions. The sensitivity of the efficiency scores estimated for the Lithuanian family farms was analysed by manipulating the numbers of randomly drawn benchmark observations estimations and thus constructing respective order–m frontiers. The livestock farms appeared to be most efficient, or even super–efficient, independently of the model orientation or the order of the frontier. The crop farms exhibited the lowest mean efficiency as well as the widest distribution of the efficiency scores. The mixed farming was more related to the livestock farming in case of the input–oriented framework and to the crop farming in the output–oriented one in terms of the mean efficiency scores. Thus, the mixed farms were located inside the production frontier (surface) in a rather compact way. The order‐alpha technique enables to estimate the level of efficiency along with sensitivity analysis. This study attempted to analyse the Lithuanian family farm efficiency as well as the associated uncertainties. The probabilistic analysis of the efficiency of Lithuanian family farms suggested that the livestock farming was the most efficient farming type. Even though livestock farming appeared to be a relatively efficient farming type, the number of livestock is decreasing Lithuania. Such changes might be fuelled by both economic and social developments in Lithuania. Therefore, the appropriate measures aimed at fostering livestock farming in Lithuania would contribute to increase in agricultural efficiency and productivity.

Page 121 of 172


Presentation No

117

Paper#

251

Authors:

Francisco Daladier Marques Júnior, Walisson Pereira Ferreira, Antônio Clécio Fontelles Thomaz and Ana Lúcia Miranda Lopes

Speaker

Francisco Daladier Marques Junior

Title:

Performance evaluation of agricultural municipalities in Paraíba State from Brazil with Data Envelopment Analysis (DEA), the models with SBM and SBM with super efficiency.

Track: Agriculture



Abstract: This paper uses a method of estimating non‐parametric frontier Pareto‐Koopman efficient, that uses linear programming, called Data Envelopment Analysis (DEA) to evaluate the agricultural counties of the state of Paraiba from Brazil. This were used: Slack‐Based Measure of Efficiency (SBM) input‐oriented, as well as with analysis of SBM super‐efficiency also oriented to the inputs, which brings a ranking with scores above the unit, resulting in a more accurate efficiency frontier. The results are representative of the source data to prove the process of accelerating desertification in the state of Paraiba.

Page 122 of 172


Presentation No

118

Paper#

316

Authors:

Olajide Ajao, Ogunniyi Laudia and Oyedele Adekunle

Speaker

Olajide Abraham Ajao

Title:

AGRICULTURAL PRODUCTIVITY GROWTH AND INCIDENCE OF POVERTY: AN EXPERIENCE FROM AFRICA

Track: Agriculture



Abstract: This study investigates the effects of agricultural productivity growth on poverty. Using Food and Agriculture Organisation (FAO) data covering two decades (1971‐2009) we determined the relationship between agricultural productivity and poverty. Malmquist Index Total Factor Productivity (TFP) was used as indicator of agricultural productivity while Human Development Index (HDI) was adopted as proxy for poverty. Further analysis was carried out to determine whether the performance of factor productivity is due to change in technology or technical efficiency. The result of Malmquist TFP index analysis showed that the average TFP growth over the period was found to be 0.2 percent per annum with large variation in growth rate across the sampled countries. Twenty‐two countries representing about 52% of the total sample experienced productivity growth and this is largely due to technological change. Congo and Somalia experienced decline in growth and this may be attributed to the incidence of war and civil unrest which have adverse effect on growth. Overall, the continent experienced improvement in technology with 2.1 percent upward shift in the production frontier and 1.8 percent decline in efficiency. Regional comparison of agricultural productivity growth reveals that East, South and North Africa experienced growth of 3.3, 2.6 and 3.6 percent respectively. There were declines in agricultural productivity in West and Southern Africa regions as a result of reduction in efficiency. The analysis of agricultural productivity growth on poverty shows a positive and significant relationship between indicators of the two variables. Specifically, the result indicates that a unit increase in productivity growth will lead to 0.69 percent change in human development index and conversely poverty. Further analysis revealed that the unit improvement in technological change will cause about 1.3 percent improvement in human development index. The study concludes that agricultural productivity growth is pro‐poor and effective strategy to reduce poverty in Africa. It is recommended that relevant policies to address the constraints to technology progress and efficiency should be promoted to improve productivity growth and reduce poverty.

Page 123 of 172


Presentation No

119

Paper#

71

Authors:

Laure Latruffe, Celine Nauges and Yann Desjeux

Speaker

Yann Desjeux

Title:

Technical efficiency and technology adoption: a study of organic farming in the French dairy sector

Track: Agriculture



Abstract: Using original survey data from France we study the importance of technical efficiency as a potential determinant of farm conversion to organic farming in the dairy sector. We run a two‐stage analysis. In the first stage we calculate technical efficiency of farms when they were conventional (including organic farms before they convert) as well as technical efficiency change indices, using Data Envelopment Analysis and correcting for sample bias with Simar and Wilson’s bootstrapping procedure. In the second stage, we estimate a Probit model to explain the decision of farmers to convert to organic farming. The model is estimated on a sample of 210 farmers. We find that farmers who switched to organic farming were more technically efficient (before conversion) than farmers who remained conventional, but they had experienced a slowdown in technical efficiency (also before conversion).

Page 124 of 172


Presentation No

120

Paper#

113

Authors:

Abbasali Noura, Alireza Hajihosseini and Elnaz Hosseini

Speaker

Alireza Hajihosseini

Title:

A new approach to measuring congestion in DEA with common weights



Room, Chair: (32) IPPP Auditorium, Chairman: Vladimir E. Krivonozhko

Abstract: Congestion is an important topic in economics and data envelopment analysis. It occurs whenever one or some inputs increase that can reduce one or some outputs and one or some inputs reduce that can increase one or some outputs without improving other inputs or outputs. However, there is still a lot of talk about measuring congestion such that most models don't show congestion in some cases. In this paper we will improve the method of Noura et al for measuring congestion and a new approach is proposed to measuring congestion in units by using common weights based on comparison of inputs. Finally, results will be shown with examples.

Page 125 of 172


Presentation No

121

Paper#

195

Authors:

Reza Kia, Nikbakhsh Javadian and Babooshka Shavazipour

Speaker

Reza Kia

Title:

A Neutral DEA model in Cellular Manufacturing Systems with Assignment Worker




Abstract: This paper develops an integer mathematical programming model to design the cellular manufacturing systems under data envelopment analysis. Since workers have an important role in doing jobs on operation machines, assignment of workers to cells becomes a crucial factor for fully utilization of cellular manufacturing systems (CMS). The aim of the proposed model is to minimize backorder costs and intercellular costs. The Data Envelopment Analysis (DEA) performs for determining the most efficient alternative among ones that are considered by employing the average machine utilization, the average worker utilization, and number of product as the output variables and the number of machines, the number of workers, the number of parts and demand levels as the input variables. The neutral DEA model determines input and output weighs just from the angle of DMUp itself. Therefore, the Decision Maker (DM) is not enforced to make any difficult subjective choice between the aggressive and benevolent formulations.

Page 126 of 172


Presentation No

122

Paper#

280

Authors:

Walter Briec

Speaker

Walter Briec

Title:

Tropical Production Technologies




Abstract: This paper proposes to model production technologies with an upper semi‐lattice structure endowed with tranlation homothetic properties. In two recent papers ( Briec and Horvath (2009) and Briec and Liang (2012)) an idempotent convex structure was proposed to measure performance of firms. This approach involved a divisibility assumption and it was shown that one can propose a DEA framework inspired from Charnes, Cooper and Rhodes (1978)and Banker, Charnes and Cooper (1984) to model technologies. Along this line, performance of firms can be evaluated by computing Farrell efficiency measures in closed form. However, there exist other distance function approaches on an additive structure based upon. The paper proposes a framework allowing to take into account both semilattice structure and translation homothetic properties in productivity measurement. To do that, the concept of Max‐plus convexity is considered. Max‐Plus convex technologies combine both an upper semilattice structure and an additivity assumption. All this analysis relies on the field of tropical idempotent mathematics.

Page 127 of 172


Presentation No

123

Paper#

87

Authors:

Vladimir E. Krivonozhko, Finn R. Førsund and Andrey V. Lychev

Speaker

Vladimir E. Krivonozhko

Title:

On comparison of different sets of units used for improving the frontier in the DEA models




Abstract: Every mathematical model is just an approximation of the real‐life processes and phenomena. For this reason some inadequacies may arise in models. In the DEA scientific literature several methods were proposed to overcome such difficulties. Some authors proposed to use specific production units in the primal space of inputs and outputs as a starting point in order to improve the frontier of the DEA models. Edvardsen et al. (2008) suggested an empirical method for discovering suspicious units, they called them exterior units. Thanassoulis and Allen (1998), Thanassoulis et al. (2012) described anchor units and proposed to use them to improve the DEA models. Bougnol and Dulá (2009) gave a strict definition of anchor units and elaborated method for discovering them. In our previous papers, we introduced the notion of terminal units. It was proved that only terminal units can improve the frontier in any possible case. In this paper, the relationship between all sets of units is established. Our theoretical results are confirmed by graphical examples and also verified by computational experiments using real‐life data sets.

Page 128 of 172


Presentation No

124

Paper#

116

Authors:

Don U.A. Galagedera and John Watson

Speaker

John Watson

Title:

Benchmarking superannuation funds based on relative performance

Track: Theory and Applications


Room, Chair: (33) IPPP Seminar Room 1, Chairman: Hassan Bal

Abstract: In this paper, we assess relative performance of 137 Australian superannuation funds in a multi‐dimensional framework using data envelopment analysis. The results reveal that nine out of the 15 efficient funds belong to the retail type and the reference set of most inefficient funds comprise entirely of funds that belongs to types different from their own. Hence we provide a number of reference sets instead of just one. We do this by categorising the funds on a hierarchical basis. We establish hierarchy based on the frequency of efficient funds that belongs to each fund type. We highlight a procedure that finds role models to inefficient funds from within the same type and/or from the types that are at the lower levels in the hierarchy. The aim is provide avenues to reach the efficient frontier established by all sampled funds progressively. We demonstrate this by selecting an inefficient industry fund. We extend the analysis to investigate the effect of fund characteristics not considered in the DEA analysis may have on fund performance. Statistical evidence suggests that membership and proportion of risky assets may have a negative association while asset base and retail/commercial type funds may have a positive association with performance.

Page 129 of 172


Presentation No

125

Paper#

191

Authors:

Vadoud Najjari and Hasan Bal

Speaker

Hasan Bal

Title:

Hyperbolic Archimedean copulas in the stochastic frontier models




Abstract: Current methods of modeling time dependence in stochastic frontier models are either improper or computationally infeasible. Also there are some assumptions on models that make it more complicated. As an example, if marginals had a distribution such as normal/half‐normal, there is no known multivariate distribution that investigate the properties of them. There are some suggestions to solve this problems by copulas in the literature. In this study we will review them and finally we will try to solve this problem with hyperbolic Archimedean copulas that this type of copulas recently introduced in the literature.

Page 130 of 172


Presentation No

126

Paper#

20

Authors:

Fabiana Rocha, Janete Duarte, Luis Felipe Pereira, Plinio Oliveira and Sergio Gadelha

Speaker

Plinio Oliveira

Title:

Can education targets be met without increasing public spending? Evidence from Brazilian municipalities




Abstract: The purpose of this paper is to evaluate whether resources allocated to education by Brazilian municipalities are sufficient to guarantee that the targets established for 2021 can be reached. In order to do so, we use directional distance functions that determine only the proportion by which discretionary inputs should be reduced. We assume that education is a fixed input in the short run, and that the municipalities have control only over the amount of spending on education. After measuring the amount of wasted resources, we solve a linear programming problem similar to that of the DEA model, whose result gives the minimum amount of spending required to achieve the target. The results indicate that the amount of wasted resources is significant. For the municipalities as a whole, wasted resources represent 47.3% and 40.1% of expenditures with education when we assume constant returns to scale and variable returns to scale, respectively. Actual spending is much higher than the minimum required to achieve the target. Even when we assume more strict targets, we still conclude that the problem is not the scarcity of resources.

Page 131 of 172


Presentation No

127

Paper#

330

Authors:

Susila Munisamy and Noor Asiah Ramli

Speaker

Susila Munisamy

Title:

Productivity growth in Malaysian manufacturing sector: A two stage analyses of the Malmquist Luenberger productivity index




Abstract: Productivity growth must reflect the realities of production activities. In the manufacturing sector, emissions from fossil fuel combustion, which are acknowledged as being undesirable outputs, should be taken into account in productivity change measurement. The main purpose of this study is to calculate productivity change in the Malaysian manufacturing sector employing the Malmquist Luenberger Productivity Index (MLPI). A two stage analyses with a three year ‘window’ of data is employed to overcome the infeasibility problem that may occur in the MLPI calculated by Directional distance function (DDF). Productivity regress in the manufacturing sector was observed over the period 2003‐2010 and the main source of the productivity deterioration when taking carbon dioxide (CO2) emissions into account is eco‐efficiency change.

Page 132 of 172


Presentation No

128

Paper#

126

Authors:

Noor Asiah Ramli and Susila Munisamy

Speaker

Noor Asiah Ramli

Title:

Performance measurement of the banks in Malaysia in the presence of non‐performing loan



Room, Chair: (34) IPPP Seminar Room 2, Chairman: Francisco Vargas

Abstract: The commercial banks in Malaysia have played a vital role in the banking institutions since they are the largest and most significant providers of fund in the banking institutions. The objective of this study is to assess the efficiency measurement of banking industry considers 22 commercial banks in Malaysia over the period 2001‐ 2010. To achieve the objective, efficiency scores of banks are estimated using slack based directional distance function technique. This technique is employed since it takes into consideration the desirable and undesirable output simultaneously while measuring efficiency. To measure the efficiency of the commercial banks, non‐performing loan need to be accounted since that are an undesirable by‐product while producing loans and may lead the bank to become inefficiency. The present paper may helps to understand the efficiency performance in this vital institution whereby it may provide improvement opportunities for policy making in banks institution.

Page 133 of 172


Presentation No

129

Paper#

14

Authors:

Ning Zhu, Bing Wang and Zhiqian Yu

Speaker

Ning Zhu

Title:

Technical Efficiency Measurement under Different Risk Preferences: An Empirical Analysis for Chinese Commercial Banks




Abstract: Distinguishing from earlier researches accounting for risk preferences, we employ the multi‐directions efficiency analysis (MEA) to classify risk preferences by adjusting the direction vectors endogenously, and estimate the technical efficiency, based on the best risk preference, of 44 Chinese commercial banks during 2004 ‐ 2011. There are several interesting results as follows: (1) Risk balance preference was the best risk preference to achieve the technical efficiency. (2) Scale effect played a critical role to impact technical efficiency in Chinese commercial banks, but the effect has been decreasing rapidly. (3) The technical efficiency scores of joint stock commercial banks and city commercial banks were higher than that of state owned commercial banks under the best risk preference, and the efficiency changes were mostly improving as time passing. (4) Furthermore, it was found that the state owned commercial banks might be affected by policy power to a certain extent.

Page 134 of 172


Presentation No

130

Paper#

328

Authors:

Indra Widiarto and Ali Emrouznejad

Speaker

Indra Widiarto

Title:

Lending a Right Hand: Application of DEA Meta‐frontier Analysis in Observing Impact of Loan Disbursement Method to Microfinance Efficiency




Abstract: In the last three decades, microfinance has been regarded as powerful tool in poverty alleviation. As a pioneer spurring this growth, Grameen Bank in Bangladesh had developed a signature group lending method that enables peer monitoring and collective liability to lower credit risks faced by microfinance institutions (MFIs) lending out collateral‐free loan; a method which has since replicated globally. However, this perceived to come with costs, i.e. high transaction costs due to regular group meeting for loan disbursement and training, whilst collective liability creates peer pressure within group for timely repayment which may alienate poorest borrower. It is also viewed as limiting MFIs loan growth thus many MFIs, including some pioneers, have resorted back to individual lending method or combination of these. Apart from these, village banking method had also been introduced as alternative loan method. This study therefore seeks to observe whether chosen loan methodology influences MFIs’ efficiency in reaching double bottom objectives, specifically in overall, social and financial efficiency. In doing so, it employs non‐oriented DEA meta‐frontier analysis followed by second stage analysis to dataset from 827 MFIs in six regions globally. This study concludes by proposing policy recommendation for MFIs.

Page 135 of 172


Presentation No

131

Paper#

47

Authors:

Sadia Farooq

Speaker

Sadia Farooq

Title:

Analyzing Performance of Microfinance Institutions (MFIs) Based on Production Trade‐offs Approach in DEA




Abstract: Micro finance institutions specialize in providing financial and non financial services to poor people facing lack of access to sources of finance. Evaluating performance of these unique institutions is a complex procedure due to their dual objectives of helping poor people and ensuring commercial viability for long term sustainability. Traditionally, performance evaluation of MFIs has been done through ratio analysis that faces certain limitations including subjective nature of this technique and complication of interpreting results when different ratios provide conflicting information. Using Data Envelopment Analysis (DEA) for performance evaluation of MFIs remains an under‐researched area. Also, the limited number of studies that have used DEA in this field fail to provide a specific framework for MFIs, instead relying on frameworks developed for other types of financial institutions. First objective of this study is to propose a DEA based framework for evaluating social and financial performance of MFIs. Secondly, this study proposes an application of an approach developed by Podinovski (2004), known as the Production Trade‐offs Approach, to deal with the problem of insufficient efficiency discrimination. Under the Production Trade‐offs approach, simultaneous changes are made to different inputs and outputs in line with technological realities. This approach results in improving discrimination of efficiency scores while ensuring that efficiency can be interpreted as a radially realistic improvement factor. Through the incorporation of a number of production trade‐offs, we demonstrate how it is possible to improve the discrimination of efficiency scores without any loss of traditional meaning of efficiency.

Page 136 of 172


Presentation No

132

Paper#

127

Authors:

Cesar Navarro and Odette Delfin

Speaker

Cesar L. Navarro‐Chávez

Title:

Economic Efficiency in Mexico Port Terminals , 2000‐2010 : An Analysis through Data Envelopment

Track: Transportation


Room, Chair: (35) IPPP Video Conference Room, Chairman: Cesar L. Navarro‐Chávez

Abstract: In this study from the Data Envelopment Analysis ( DEA ) methodology, is calculated for 2000‐2010 period, the economic efficiency of the nine major international ports in Mexico: Ensenada, Mazatlan, Manzanillo, Lazaro Cardenas , Altamira , Tampico, Tuxpan , Veracruz and Progreso. In a first step, we determine the global technical efficiency, which is the product of the calculation of the pure technical efficiency and scale efficiency. In a second, we consider the efficiency of input costs for allocative efficiency. Finally, from the global technical efficiency and allocative efficiency, the economic efficiency is obtained . In the results show that in general between 2000 and 2010, most of the ports were characterized by low levels of economic efficiency. However, it is important to note the following peculiarities : Manzanillo and Altamira were efficient in a larger number of periods , while the ports of Mazatlan, Progreso ranked as the most inefficient with average values of 0.04 and 0.014 respectively, while that Veracruz although it has a high flow of goods and a favorable behavior in technical efficiency , so refers to its efficiency in allocation is not necessarily in the same direction . The study also aims to identify the causes of the inefficiency of the ports reviewed, in order to establishing port policies oriented at strengthening the optimization of resources that are operating .

Page 137 of 172


Presentation No

133

Paper#

145

Authors:

Muhammad Asraf Abdullah, Susila Munisamy and Nurulhuda Mohd Satar

Speaker

Muhammad Asraf Abdullah

Title:

Measuring Efficiency of Different Airline Business Models Using DEA Metafrontier Framework




Abstract: The global aviation industry has recorded rapid growth over the last several decades. Airports operate in complicated environments and have varying models of service. This paper uses the concept of metafrontier function to study the efficiency differences between full service and low costs carriers production technology. Past studies on airline efficiency tend to neglect the issue of heterogeneity in airline technology. This has invited debates in the efficiency scores obtained in these studies because business models (whether full service or low costs) adopted by airlines reflects technological differences in their operations. The Metafrontier model estimated using Data Envelopment Analysis is a new approach in efficiency study and is one of the best approaches to tackle this issue. As far as airline efficiency study is concerned, there is no study applying this model to estimate efficiency across airlines. In this methodological context, efficiency of airlines from different business models will be assessed based on three measurements‐ namely airline group‐k technical efficiency, metafrontier efficiency and metatechnology ratio. The empirical application of the method uses cross‐country airline sector data spanning from 2002 to 2011. Thus, the contribution of this paper is to provide a more realistic measure of technical efficiency of airlines. The finding from this empirical work is expected to fill gaps in past literatures as well as aid airline managers in decision making.

Page 138 of 172


Presentation No

134

Paper#

247

Authors:

Parviz Mohsenpour, Zahra Mohsenpour and Dariush Khezrimotlagh

Speaker

Parviz Mohsenpour

Title:

Estimating the Performance Evaluation of International Airports of Iran Using KAM in Data Envelopment Analysis




Abstract: Islamic Republic of Iran has 8 international airports. This paper reports the performance evaluation of these airports in the end of forth development plan of Iran in 2009 by applying Kourosh and Arash Model (KAM) in Data Envelopment Analysis (DEA). The area of airport, apron, terminal and runway are considered as inputs and the number of flights, the number of passengers and cargo are three selected outputs for each airport. Several scenarios are considered to rank and benchmark these airports without concerning about the number of airports. In other words, the scenarios are when inputs/outputs are controllable, when some of them are non‐controllable and when the number of flights and passengers are restricted to the set of integer numbers and so on while the number of inputs and outputs are approximately the same as the number of airports. The results of these scenarios not only show the robustness of KAM to assess the performance evaluation of Decision Making Units (DMUs), but they also suggest the best international airports of Iran in 2009 as well as rank and benchmark them for each scenario.

Page 139 of 172


Presentation No

135

Paper#

266

Authors:

Barbara T.H. Yen, Chi‐Hong Tsai, Corinne Mulley and Matthew Burke

Speaker

Barbara T.H. Yen

Title:

Exploring property value effects of ferry terminals in Brisbane, Australia: a comparison of DEA and Statistical Regression Analysis




Abstract: Property value effects of linear river ferries that service multiple stops in urban areas are under‐explored. The Brisbane CityCat, CityHopper and CityFerries combine to form a ferry system with 24 terminals. This paper employs the Data Envelopment Analysis (DEA) approach to measure the property value effects of the linear river ferries in Brisbane. The DEA output is defined as the property price and the input variables include accessibility to ferry terminals, Central Business District and trains stations as well as the unemployment rate as an index of neighbourhood attributes. . The prediction performance of DEA is then compared with conventional statistical regression methods. The research findings suggest that the DEA has the capability of portfolio analysis to understand which types of properties benefit from the ferry service more, whereas the statistical regression models have the better flexibility in selecting the explanatory variables and greater power in identifying the magnitude of impact on property price from each of the explanatory variables. This research shed the light of the way in which the DEA can be applied as a tool to evaluate the relationship between property value and price determinants, which has been conventionally undertaken by statistical regression methods.

Page 140 of 172


Presentation No

136

Paper#

282

Authors:

Ruzanita Mat Rani, Wan Rosmanira Ismail and Wan Nor Hazwani Wan Nordin

Speaker

Ruzanita Mat Rani

Title:

Product Production Selection using Computer Simulation and Data Envelopment Analysis

Track: Other Applications


Room, Chair: (36) IPS Auditorium, Chairman: Konstantinos Triantis

Abstract: Making decision in the product production selection especially in a food manufacturing company that produces different type of food products is a very hard decision because it will affect company profitability. Therefore, this paper proposes the use of computer simulation, BCC output‐oriented and cross efficiency in determining the best product production for efficient food manufacturing. Six product production selection is identified and with the assistance of computer simulation inputs and outputs are generated. Inputs are costs and work in process. Outputs are revenue, average operator utilization and throughput. The results show that the production of the same type of products is the best product production selection.

Page 141 of 172


Presentation No

137

Paper#

299

Authors:

Kamil Çelik, Cevriye Gencer and Lawrence Seiford

Speaker

Kamil Çelik

Title:

Information Efficiency of European Countries with Data Envelopment Analyses




Abstract: We evaluate the efficiency of 30 countries in Europe during the period from 2008 to 2012 using Data Envelopment Analyses. This research involves 3 different analyses. Each of them used the same outputs but different input sets. The outputs are “Households with Internet access at home”, “Individuals' level of computer skills” and “Internet use by individuals” while the outputs measure “Gross domestic product at market prices”, “Net national income” and “Total general government revenue”. Our talk will describe the insights obtained.

Page 142 of 172


Presentation No

138

Paper#

84

Authors:

Yanmin Shao and Ai Han

Speaker

Yanmin Shao

Title:

Modelling the environmental efficiency of Chinese nonferrous metals industry with bootstrap strategy




Abstract: There are growing literatures on the statistical properties of DEA estimators after the work of Simar and Wilson (1998), who proposed a smoothed bootstrap strategy to analyze the sensitivity of the efficiency measures and fixed the bias of efficiency scores. There is growing concern about carbon emissions because of their potential for causing global warming. Because the undesirable outputs are often produced together with desirable outputs, so the production processes should take into account environmental sustainability, and the measures of environmental efficiency should be paid more attention. In this paper, we provided a novel smoothed bootstrap method to model the joint production of good and bad outputs, which can simultaneously increase production of the good output and reducing production of bad outputs. Then, we apply the proposed measure to model the environmental efficiency of Chinese nonferrous metals industry.

Page 143 of 172


Presentation No

139

Paper#

138

Authors:

Yahuza Kassim

Speaker

Yahuza Kassim

Title:

Benchmarking Information Technology IT induced Productivity for Engineering and Construction Organization: Data Envelopment Analysis Model Approach.




Abstract: The paper presents a theoretically structured and empirically tested model for evaluating the relative impact of utilization of IT resources as factors of ‘production’ on the performance of Engineering and Construction processes using a non‐parametric technique of Data Envelopment Analysis (DEA). It is shown that a frontier that ʽenvelopsʼ the most efficient construction organisations can be identified using this approach, thereby proving a basis for benchmarking the IT‐induced productivity of similar organisations. A DEA slack based model was used to provide information on how to improve the performance of the ‘inefficient’ organisations relative to their peers. The outcome of the research has mitigated the difficulties associated with lack of theoretical framework in modeling ITBV, the prior assumption required for the relationship between IT investment and firm performance, and the arbitrary and subjective assigning of weights to the variables in the previous studies. The empirical evidence established that IT resources in the presence of complimentary organizational resources provide business value in the execution of value chain of the engineering and construction organization leading to significant positive impact on the organisations’ performances in the areas of project delivery, customer relationship and overall profit growth.

Page 144 of 172


Presentation No

140

Paper#

61

Authors:

Robabeh Eslami and Mohammad Khoveyni

Speaker

Robabeh Eslami

Title:

New insights on estimating most productive scale size in DEA

Track: Fuzzy DEA/Applications


Room, Chair: (37) IPS Seminar Room A, Chairman: Adel Hatamimarbini

Abstract: In this research, we deal with a realistic decision problem that contains fuzzy constraints and uncertain information (stochastic data) that most productive scale size (MPSS) is estimated in imprecise‐chance constrained DEA (data envelopment analysis) model. Moreover, intention of this research is to develop and solve a chance‐constrained input‐output orientation DEA model in which even the chance factors associated with the constraints are not specified precisely. Fuzziness and probability concepts allow the data errors and provide probabilistic results. Hence, fuzziness and randomness are required to be considering in a real situation, simultaneously. Other advantage of our research is to impose managers’ ideas, by considering the tolerances allowed by decision makers. In this study, a methodology is taken for conversion of fuzzy probabilistic constraints into the deterministic equivalent form. At last, an empirical example highlights the application of the model then some directions for future research are suggested.

Page 145 of 172


Presentation No

141

Paper#

256

Authors:

Majid Zerafat Angiz Langroudi, Adli Mustafa, Ali Emrouznejad and Razamin Ramli

Speaker

Razamin Ramli

Title:

An alternative multi‐attribute decision making method basis on aggregating preference ranking




Abstract: The aim of this paper is to present a methodology for a Multi‐Attribute Decision Making approach through the exchange of data to the ordinal form. For this purpose, by constructing an order structure, we propose a procedure in which Data Envelopment Analysis and aggregating preference ranking are applied to evaluate alternatives. As it is known, in aggregating preference ranking environment, data only include the number of times that an alternative places in a specific rank place, whereas in the Multi‐Attribute Decision Making methods the actual data play the major role in evaluating the alternatives. Therefore, to apply an aggregating preference ranking method for Multi‐Attribute Decision Making, researcher should consider this major point. The contribution of this paper is that it evaluates the alternatives of a Multi‐Attribute Decision Making problem, through the aggregating preference ranking, by keeping real data. On the other words, in addition to the amount of data, the rank place also plays the role in evaluation. Unlike the methods, which consider only ideal points in evaluation, the new methodology involves all alternatives to get more reasonable result. The new method is compared with two multi‐criteria decision making methods.

Page 146 of 172


Presentation No

142

Paper#

294

Authors:

Shafaghizadeh Somayeh and Yousefinejad Attari Mahdi

Speaker

Somayeh Shafaghizadeh

Title:

An integrated fuzzy Data Envelopment Analysis and Data Mining for Performance assessment of Insurance branches




Abstract: This paper presents a Fuzzy Data Envelopment Analysis (FDEA) model combined with Bootstrapping to assess performance of one of the Data mining Algorithms. We used a two‐step process for performance productivity analysis of Insurance Branches in Iran. First, using a Fuzzy Data Envelopment Analysis (FDEA) model, the study analyzes the productivity of eighteen Decision‐making units (DMUs). Using a Malmquist Index, FDEA determines the productivity scores but cannot give details of factors depend on Regress and Progress Productivity. FDEA model uses a new Latent Variable radial input‐oriented technology and simultaneously reduces inputs and undesirable outputs in a single multiple objective linear program. On the other hand, the classification and regression tree (C&R) efficiency model was then utilized to extract rules for exploring and discovering meaningful and hidden information from the vast databases. The conclusion of the combined model is a set of rules that can be used by policy makers to explore reasons behind the progress and regress productivities of DMUs.

Page 147 of 172


Presentation No

143

Paper#

169

Authors:

Adel Hatamimarbini and Siavash Hekmat

Speaker

Adel Hatamimarbini

Title:

An Integrated Strategic DEA‐based Structure for Supplier Selection in Supply Chain Management




Abstract: The quarrelsome and competitive circumstances of modern industry obligate the enterprises to develop the core and non‐core competencies across the functional areas of their business. Thus, it is necessary to adopt a unified strategic behavior in supply chain management to handle the competition with concentrating on the competencies. This research attempts to develop a unified and integrated structure for evaluating a number of suppliers competing closely in a supply chain, on the basis of the strategic state plan. The evaluation is conducted within DEA‐MADM (data envelopment analysis‐multiple attribute decision making) framework. Due to the lack of discriminatory power of the DEA models in evaluating the efficient suppliers, gray relational analysis (GRA) and principal component analysis (PCA) technique are developed to strengthen the discrimination power of the analysis. We applied a real‐world application to demonstrate the advantages and applicability of the proposed structure.

Page 148 of 172


Presentation No

144

Paper#

118

Authors:

Sangmok Kang and Subhash Ray

Speaker

Sangmok Kang Kang

Title:

Estimation of Efficiency Based on the Material Balance Flow



Room, Chair: (38) IPPP Auditorium, Chairman: Sangmok Kang Kang

Abstract: This paper proposes the production efficiency that treats GDP and pollution as separable outputs, which are connected indirectly through the use of a particular input, fossil fuel. This paper is different from the existing studies in that we present a causal relationship among fossil fuel, CO2 emission, and manufacturing level relying upon material balance flow approach. OECD countries reported low inefficiency next to the high‐middle income group under the traditional approach. But under the material flow approach , OECD countries could not show low inefficiency, while the low income group displayed the high performance. Estimating the elasticity of CO2 reduction for manufacturing reduction, we found that the curtailment of manufacturing in OECD countries might have a more effective result in reducing CO2 emission than NON‐OECD countries.

Page 149 of 172


Presentation No

145

Paper#

180

Authors:

Luiza Badin, Cinzia Daraio and Leopold Simar

Speaker

Luiza Badin

Title:

Conditional Efficiency Measurement Using CondEff Toolbox




Abstract: Many recent theoretical studies as well as empirical applications have shown the usefulness of conditional efficiency models for comparing the performances of DMUs taking into account different external environmental conditions. Nonparametric conditional efficiency models allow for a complete and general handling of heterogeneity and of the impact of external‐environmental factors on the performance of DMUs. Up to now none of the existing software available has implemented conditional efficiency scores. We fill this gap by proposing in this paper a toolbox which implements the most updated research on conditional efficiency analysis. It is suitable for applied researchers in order to perform the computations and obtain rigorous empirical evidence. Some illustrations are provided on simulated and on real datasets. The CondEff toolbox is developed in Matlab and is freely available.

Page 150 of 172


Presentation No

146

Paper#

260

Authors:

Hilal Atasoy and Rajiv Banker

Speaker

Hilal Atasoy

Title:

Impact of Sales Changes on DEA Efficiency Scores




Abstract: This study analyzes how the DEA efficiency scores are affected by the direction of sales changes and asymmetric cost behavior by using Compustat data from the US. The previous literature provides evidence that costs respond asymmetrically to sales increases and decreases. This asymmetric cost behavior is due to the fact that managers’ optimal decisions trading off capacity adjustment costs against slack capacity costs depend on their assessment of future demand trends. Managers’ expectations for future demand become more optimistic following a prior sales increase, and this makes them more willing to increase resources when current sales increase and less willing to decrease resources when current sales decrease. Additionally, adjusting resources is costly and managers’ decisions about resource levels depend on both current and prior sales changes. Contemporaneous input to output relations in DEA efficiency scores in turn depend on these deliberate decisions about resource adjustments. This leads to systematic differences in DEA efficiency scores for firms that have different sales trends. We use Compustat data to analyze the relationship between current and prior sales changes and the DEA efficiency scores. We find that DEA scores are predictably different for firms with different sales trends in a manner consistent with the predictions of asymmetric cost behavior theory. Our results indicate that the direction of sales change is an important determinant of current input‐output measures and, therefore, asymmetric cost behavior should be taken into account while analyzing and interpreting DEA efficiency scores. We find that cost stickiness conditional on a prior sales increase lead to lower DEA efficiency scores, and cost anti‐stickiness conditional on a sales decrease lead to higher DEA efficiency scores, controlling for several factors. Managers are more pessimistic about the future demand when they face a prior sales decrease. In that case, when sales decrease they would be more willing to cut down on resources, which can increase the DEA scores. We indeed find that prior sales decrease is associated with higher DEA efficiency scores among the firms that have current sales decrease, since they decrease resources more compared to firms that have prior sales increase. Alternatively, managers are more optimistic about the future sales when they face a prior sales increase, and when current sales increase; they would be more willing to increase resources. We find that prior sales increase is associated with lower DEA scores among the firms that have current sales increase; they are more willing to expand resources compared to firms that have prior sales decrease.

Page 151 of 172


Presentation No

147

Paper#

99

Authors:

Isabel Horta and Ana Camanho

Speaker

Isabel Horta

Title:

Enhancing the assessment of productivity change and convergence analyzing the best and worst practices in the construction industry




Abstract: This paper develops a new methodology to evaluate productivity change over time and convergence in the construction industry. The methodology developed is particularly useful to provide insights concerning the status of an industry. It broadens the scope of productivity assessments based on the Malmquist index, by proposing a new index to evaluate convergence between the best and the worst performing companies. Furthermore, it is also presented a measure that reflects the relative positioning of companies within the space bounded by the worst and best practice frontiers. The methodology is applied to evaluate all Portuguese construction companies that operated in the sector between 2008 and 2010. The analysis is done by dividing the companies into the four major activity segments (buildings, road networks, hydraulic works, and mechanical and electrical). The empirical results show that Portuguese contractors decreased their productivity levels in the period post financial crisis, whilst the gap between the best and the worst contractors reduced in all activity sectors. In addition, most building and road contractors are closer to the worst practice frontier, whereas companies operating in hydraulic and mechanical & electrical follow closely the practices of their best performing peers.

Page 152 of 172


Presentation No

148

Paper#

296

Authors:

Patcharaporn Neammanee and Walailak Atthirawong

Speaker

Patcharaporn Neammanee

Title:

Evaluating the performance of customs clearance agents: a case study in Thailand



Room, Chair: (39) IPPP Seminar Room 1, Chairman: Hilal Atasoy

Abstract: Customs clearance agents or customs broker act for the execution of the imported/exported documents and products from the Department of Customs. These agents take an important role for import and export companies for electronics industry in Thailand. Efficiency evaluation of customs clearance agents is crucial for decision makers in purchasing department. Data Envelopment Analysis (DEA) model is applied to compare efficiency of 4 agents. Unit price of the service, Rate of product lost or damaged, amount of times for late delivery, and rate of error on documents of customs clearance are the inputs of the DEA model. While the amount of import cargo through customs airport is the output of the model. The Result of evaluation indicates that there are two efficient and two inefficient representatives. This result of the assessment can also be used to create strategies to negotiate with inefficient customs clearance representatives.

Page 153 of 172


Presentation No

149

Paper#

300

Authors:

Deepankar Sinha and Mrinal Dasgupta

Speaker

Deepankar Sinha

Title:

System Dynamics Modeling for Establishing the importance of an Integrated Approach based on Rotated Factor Analysis and DEA over Principal Component Analysis based DEA




Abstract: Sea ports have been crucial to country’s economy as it caters to more than seventy percent (by weight) of cargo, worldwide. Its performance greatly impacts the total landed cost of goods, thus affecting the country’s foreign trade. Existing studies on determination of efficiency of sea ports are either based on DEA of the complete set of variables or on the variables with significant loadings determined through the PCA (Principal Component Analysis) approach. The former approach may suggest a port to be efficient, but may fail to identify if it is inefficient in any one dimension. It can so happen when the variables of other dimensions tend to dominate and make the port efficient evident from the Data Envelop Analysis. In case of PCA approach, the DEA is done when the numbers of variables are more compared to the decision making units. In this method some variables are left out. It is not desirable to leave out variables based on loadings as these variables may have synergetic impact on the other variables depending on the causality. The integrated approach proposed in this paper enables dimension based efficiency measurement, retention of variables and focused decision making. The results will enable the decision maker to take specific course of action. The comparisons of results with the proposed integrated approach with the PCA based combined approach show little variation in the context of Indian Ports. However, system dynamics models developed with (as reflected in integrated approach) and without (as reflected in the PCA based approach) the complete set of variables show a wider scope for decision makers in case of the integrated approach. The analysis has been done using SPSS, DEAP and Vensim software packages.

Page 154 of 172


Presentation No

150

Paper#

324

Authors:

Nyankomo Marwa

Speaker

Nyankomo Marwa

Title:

Technical and Scale Efficiency of Saving and Credit Cooperatives: Evidence from Tanzania




Abstract: This paper used the audited financial statements data from 103 Tanzanian Saving and Credit Cooperative to measure their performance in terms of efficiency. Non‐parametric data envelopment analysis framework was employed in estimating technical, pure technical and scale efficiency scores. The results show that average efficiency scores are 42%, 52% and 76% for technical efficiency, pure technical efficiency and scale efficiency respectively. In terms of firm size, too small firms and very large firms were relatively less efficient compared to medium and large firms. About 77% of the firms were operating in an increasing return to scale while 15% and 8% of the firms were operating at constant and decreasing returns to scale respectively. Since most of the inefficiencies are either technical or scale in nature, the study recommends increasing the operating scale for firms operating below optimal scale. Also the managers from technically inefficient firms should reduce the waste of the productive resources by efficiently utilizing their inputs. About 16 firms which are operating beyond the optimal scale may need to downsize.

Page 155 of 172


Presentation No

151

Paper#

80

Authors:

Carolyn Dung Thi Thanh Tran, Renato Villano and George Battese

Speaker

Carolyn Thi Thanh Dung Tran

Title:

PERFORMANCE OF VIETNAMESE HIGHER EDUCATION INSTITUTIONS IN 2011/12: A DEA APPROACH




Abstract: As in most developing economies, enhancing educational standards is one of the important strategies to attain competitiveness in Vietnam. After nearly 30 years of implementing reform policies and educational development strategies, Vietnam's education system has obtained remarkable growth in the number of students (127%) and of universities and colleges (119%) during the period 2001‐2012. The national budget for the Vietnamese higher education sector in 2012 was approximately $AU240 million, estimated to be about 3.5% of the total national expenditure for the whole educational sector. In the context of further policy development and formulation, it is imperative to examine the performance of Vietnamese higher education institutions (HEIs). This study is a first attempt to explore the performance of the HEIs in Vietnam for the year of 2011/12. Using data envelopment analysis, technical and scale efficiency measures are obtained for a cross‐section of 100 universities and colleges. The number of full‐time equivalent students and completion rates are used as output indicators, while full‐time academic staff, general staff, construction land and operating expenditures are used as input variables. Several variables are also used to explain variation in performance, including age, location, type of HEIs, qualifications of academic staff and the effect of the government policy which allows universities and colleges to impose tuition fees for highly qualified study programs. Results indicate that the mean variable‐returns‐to‐scale technical efficiency scores for universities and colleges are 0.98 and 0.96, respectively. It appears that performance is negatively correlated with the age of universities. Performance of universities is positively affected by the government policy while that of colleges is not significantly influenced by this policy. Over 85% of Vietnamese core universities in our sample performed quite well. Our findings provide useful information for consideration in the development of policies affecting the higher education sector in Vietnam.

Page 156 of 172


Presentation No

152

Paper#

269

Authors:

Nabil Channouf and Amar Oukil

Speaker

Nabil Channouf

Title:

A NEW DEA‐BASED RANKING APPROACH USING SUBJECTIVITY METRIC



Room, Chair: (40) IPPP Seminar Room 2, Chairman: Azmah Othman

Abstract: In the literature of Data Envelopment Analysis (DEA), the need for cross‐efficiency evaluations stalks from decision making contexts where the ranking of DMUs is a major issue. The presence of several efficient DMUs with efficiency scores of unity renders self‐efficiency models insufficient to rank DMUs. Therefore, one needs to find a way to distinguish the efficient DMUs from one another for ranking purpose. Hence cross‐efficiency evaluation methods were developed. The ranking approach we suggest is based on minimizing the effect of subjectivity factors on the ranking process. We will show that with a semantic redefinition of both self and cross‐efficiency scores, one can derive an interesting metric to measure subjectivity in different contexts. As a numerical application, we chose ranking a group of professors from a Business College. The robustness of the ranking patterns that are produced using minimum subjectivity is assessed through a few known ranking techniques from the field. Although the application is restricted to ranking, we should note that the results of our research can be extended to other DEA contexts, like rating, clustering, etc.

Page 157 of 172


Presentation No

153

Paper#

272

Authors:

Sallahuddin Hassan and Mohd Zaini Abd Karim

Speaker

Sallahuddin Hassan

Title:

The Effect of Public Expenditure Efficiency on Private Insvestment in Malaysia




Abstract: Economist has recognized that public expenditure plays an important role as the engine of economic growth and capital formation. Hence, public expenditure received considerable attentions from both government and taxpayers due its implication on economic performance and social well‐being. Realizing the importance of government expenditure, taxpayers also demand efficient use of public spending. Consequently, latest development in the public finance literature indicate economists’ preference towards empirical assessments of the efficiency and effectiveness of public sector activities (Afonso et al., 2003). Hence, the objectives of this study are to assess the public expenditure efficiency (PEE) in Malaysia, to compare efficiency across types of public expenditure and to evaluate the impact of PEE on private investment. To achieve the objectives of the study, in the first stage, we employed the Data Envelopment Analysis (DEA) non‐parametric technique to calculate input and output efficiency scores for the period of 1980 – 2010. In the second stage, after having estimated the efficiency scores, we analyzed the effect of PEE on private investment.

Page 158 of 172


Presentation No

154

Paper#

93

Authors:

Md. Azizur Rahman, Md. Abul Kalam Azad and Muhammad Showkat Imran

Speaker

Md. Abul Kalam Azad

Title:

Efficiency of Islamic Banks: A Comparative Study of Bangladesh and Malaysia




Abstract: This study aims is to examine the efficiency comparison of Islamic bank of Bangladesh and Malaysia. Data Envelopment Analysis (DEA) is used to explore the contributions of technical and efficiency changes to the growth of productivity in the Islamic Banking by using descriptive statistics and efficiency (CRS&VRS) applying the generalized output‐oriented Malmquist index for the years 2009‐2011. The output‐input data consists of a panel of 15 non foreign Islamic Bank from two similar dual economy of Asia for Islamic Banks. This study considers three inputs, namely Deposits, Overhead Cost, Total Assets and three outputs, explicitly Investment and Advances, ROI, ROA respectively. In the DEA technique, efficiency is measured by the Malmquist index. This study found that total efficiency of Bangladeshi Islamic Banks is better than Malaysian Islamic Banks because of higher scale efficiency occurred during the study periods. It is found that, on geometric mean, the TFP of Malaysian Islamic Banks is better than Bangladeshi Islamic Banks due to positive significant technical changes. Our finding indicates that Islamic Banks of Bangladesh, the smaller the size of the banks, the higher the probability for the banks to be more efficient in utilizing their inputs to generate more outputs but it is just opposite in case of Malaysian Banks. This work will beneficial for researchers as well as practitioners for better understanding of the both Islamic Banking Industry.

Page 159 of 172


Presentation No

155

Paper#

184

Authors:

Erhan Berk

Speaker

Erhan Berk

Title:

Efficiency Measurement of the Turkish Commercial Banks using Fuzzy Data Envelopment Analysis




Abstract: In today’s economic circumstance, performance analyses in the services industries has become more significant. With this aim in view, we want to study an application of a non‐parametric analytic technique in measuring the performance of the Turkish banking sector. Hence the traditional data envelopment analysis (DEA) approach requires a consistent operating environment. In our paper we utilized the fuzzy logic into DEA to deal with the environmental variables so that the performance of bank branches from different regions can be appraised. Also we explores the efficiency of Turkish banks for the time period 2007–2012. We find that the higher the size of total assets the higher the efficiency. We also find a wide variation in performance. Finally, from the efficiency results it seems that there is a non‐systematic relationship between some of the variables.

Page 160 of 172


Presentation No

156

Paper#

182

Authors:

Carlos Ernani Fries

Speaker

Carlos Ernani Fries

Title:

Evaluation of the impact of information and communication technologies on the efficiency of Brazilian logistics service providers



Room, Chair: (41) IPPP Video Conference Room, Chairman: Carlos Ernani Fries

Abstract: Information and communication technologies (ICT) are recognized as a competitive advantage in the sense that companies can provide better services at lower costs. However, its positive impact on productivity and process efficiency transformation of inputs into goods and services has been questioned by several studies since the 80s. This work aims to clarify the relationship between the use of ICT and measures of efficiency calculated using DEA (Data Envelopment Analysis), for the sector of logistics service providers (LSP) in Brazil. The study based on secondary data for the period 2004‐2012 includes an initial classification of the Brazilian LSP market in relatively homogeneous clusters, which bring together companies that share functional similarities and therefore make use of the same production factors to provide their service. Results based on regression models show a close relationship between technical, scale and management efficiency and use of technology packages by LSP. This suggests that ICT effectively exert influence on efficiency and therefore on productivity. The nature and extent of this influence are distinct by LSP cluster, efficiency measure and set of ICT used simultaneously: while some technology packages lead to positive impacts on efficiency, others show considerable negative effects on it. Results can help LSP on the selection and implementation of ICT packages which tend to project their operation plans on the efficient frontier, i.e., to the maximum observed productivity with reduced ICT investments.

Page 161 of 172


Presentation No

157

Paper#

238

Authors:

Barbara T.H. Yen, Lawrence W. Lan and Yu‐Chiun Chiou

Speaker

Lawrence Lan

Title:

Measuring efficiency and effectiveness of transport service: A novel approach




Abstract: This paper proposes a novel approach, the dynamic integrated slack‐based measure (DISBM) modelling, which can jointly measure the non‐radial slacks associated with input, output and consumption variables of non‐storable production process, such as transport service, which may exhibit carry‐over activities in multi‐period contexts. The core logic of the proposed DISBM modelling is to incorporate the dynamic slack‐based measure (DSBM) technical efficiency and service effectiveness into the data envelopment analysis (DEA) modelling. A case study of Taiwanese intercity bus transport over 2007‐2010 is demonstrated. The results indicate that DISBM is superior to DSBM in benchmarking power.

Page 162 of 172


Presentation No

158

Paper#

261

Authors:

Kasypi Mokhtar and Muhammad Zaly Shah Muhammad Hussein

Speaker

Kasypi Mokhtar

Title:

Seaport Risk Assessment: A Non‐parametric Approach




Abstract: Seaport terminal compels sharing its complexities with other industries. It is an integrated place where cargo moves from gate until load onto vessel and vice versa. It represents a systematic lean supply chain in a terminal. The study aims at assessing seaport risk via Slack Based Measure (SBM) and Super Slack Based Measure (SSBM) from potential risk of Malmquist Productivity Index (MPI). The inefficient result of MPI denotes potential risk to be considered then, risk assessment denote from Super Slack Based Measure of risk ranking order. The technical results depict the significant value of risk assessment as an indicator seaport status and facilities are measureable. Thus, systematic decision making approach can be applied in running terminal operation. These operation activities contribute significant outcome towards terminal performance.

Page 163 of 172


Presentation No

159

Paper#

27

Authors:


Speaker


Title:

Measuring Productivity and Efficiency of Seaports in India using Data Envelopment Analysis




Abstract: India’s major ports are the driving force behind India’s international trade. Ninety per cent of India’s overseas trade in volume and seventy five per cent in value terms are done through seaports (GOI, 2006). India has 12 major ports along its coast of nearly seven thousand five hundred kilometers. Non‐parametric technique (Data Envelopment Analysis (DEA)) is used to measure the productivity and efficiency of seaports (major ports) of India. This study has two principal objectives. The first objective is to measure and compare the efficiency of the seaports of India using DEA approach. The second objective is to illustrate DEA approach which is being widely used in the context of Major ports of India. The result of this study gives us an interesting outcome of seaports efficiency scores during the study period 1996‐97 to 2007‐08.

Page 164 of 172


Presentation No

160

Paper#

242

Authors:

Wan Anisabanum Salleh, Wan Mansor Wan Mahmood and Fadzlan Sufian

Speaker

Wan Anisabanum Salleh

Title:

The Technical Efficiency of Mergers and Acquisitions Telecommunication Companies: Evidence from Asean



Room, Chair: (42) IPS Auditorium, Chairman: Ayhan Gölcükcü

Abstract: Multiple mergers and acquisitions (M&A) in a period of years may lead to the accumulation of organizational inefficiencies. In consideration of the above views, this study was done by taking into account the consequence of multiple (M&A) undergone by the telecommunication companies in Asian countries using year‐by‐year projections. The study employed the Banker‐Charnes‐Cooper (BBC) to calculate the technical efficiency (TE) of companies during the period 2000‐2011. Subsequently, regression analysis was employed to examine factors that influenced the efficiency of the companies. The empirical findings suggests that the companies which partook in M&A of varying intensity over a sequence of years showed lower efficiency scores in the total asset model when compared with companies which were involved in only single M&As. The results of the regression analysis indicate that there exists a significant relationship, of negative value, between sequence of M&A and TE, in the total asset model. The findings also indicated that the relationship between size and TE are significant and positive. Prior to this result, the authors also discussed the importance of having a merger control under Competition Law and suggested that there is a need for improvement of merger control to sustain the relative efficiency. In addition, it might be possible to come out with useful guidelines for companies contemplating multiple M&A.

Page 165 of 172


Presentation No

161

Paper#

305

Authors:

Anastasia Klimova

Speaker

Anastasia Klimova

Title:

Social Protection: An Empirical Attempt to Estimate Performance and Efficiency of the System




Abstract: Current research describes the particularities of the DEA approach applied to the social protection system analysis. A general description of economic effects of social protection anticipates the determination of the principal input and output indicators to measure both: performance as efficiency of the sector. In the current study a number of difficulties are taken into consideration: the necessity of the weights assignation for every chosen indicator; the presence of non‐desirable outputs; due to the absence of straightforward connection between inputs and outputs in the system, the part of the study dedicated to the efficiency analysis has an exploratory character. The obtained results provide an up to date snapshot of the national governments’ activity relative to the social protection since most of the studies conducted in this field heretofore refer to 2006.

Page 166 of 172


Presentation No

162

Paper#

82

Authors:

Tommi Kauppinen, John Jackson, Emmanuel Manlapig and Janine Lay

Speaker

Tommi Kauppinen

Title:

Data fusion on rock breakage using Data Envelopment Analysis




Abstract: Extraction of valuable minerals from ore requires breaking the ore as the first step, so ore ‘hardness’ is a critical property to take into account in designing a minerals processing flowsheet and managing a minerals processing operation. Ore hardness is routinely measured but this is time‐consuming and expensive. Faster and cheaper indicators, or ‘proxies’ for ore hardness, rather than direct measurements, are actively being investigated in the industry. Examples of these proxies include chemical composition, X and Y. Because the theory relating such parameters with measured hardness is not well developed, practitioners usually test combinations of such parameters, informed by their own experience. This paper describes a new application for the DEA technique whereby it is used to objectively assess the suitability of various combinations of proxies to predict the most appropriate proxies to solve for ore hardness. The exact figures for both crushing (A*b) and grinding (BWi) have been established for a dataset. Decision Making Units (DMUs) comprise of individual data points. Results show that there is a connection between rock hardness and suitable DEA model results in DMUs and indicate great promise for applying this technique in the minerals industry.

Page 167 of 172


Presentation No

163

Paper#

98

Authors:

Hasan Bal and Ayhan Gölcükcü

Speaker

Hasan Bal

Title:

Do Players Performance Indicate Team Performance: Turkish Basketball League Example




Abstract: It is an obvious fact that, players plays and teams wins. Data envelopment analysis is used to evaluate the efficiency of basketball players in Turkey for the 2012‐2013 season. Evaluated efficiency scores are grouped according to teams for obtaining team performance. Soon, these performances are used for the comparison between average efficiency and original league rank. It is also tested whether there is a difference between the teams in terms of efficiency scores. The degree of difference shows the heterogeneity of league and means only a sub group of team can be champions and the other teams are dummy. The degree homogeneity of league indicates the level of competition.

Page 168 of 172


Presentation No

164

Paper#

131

Authors:

Rosmiza Rosly

Speaker

Rosmiza Rosly

Title:

Foreign Direct Investment and Trade on TFP in Malaysia's Selected Manufacturing Industries



Room, Chair: (43) IPS Seminar Room A, Chairman: Qing Li

Abstract: Total Factor Productivity (TFP) is recognized as indicator for long run economic growth. The development of firm, industry and country is measured through its TFP performance. TFP by definition is efficiency in utilizing available resources in producing output. High TFP recorded, means economy is more efficient. The important of TFP in enhancing economy performance has force economy like Malaysia to turn to TFP in achieving its goal to be a high income economy. With the slowdown in its GDP growth and its manufacturing contribution, despite initiatives and priority given to the sector, TFP seems to be the best measurement to assist Malaysia in understanding its manufacturing industries and in setting the sector’s policy and strategies of future plan. With information in hand of the manufacturing industries’ TFP performance, another issue would be, to investigate factors affecting this performance and how the economy could assist the industries in sustaining their growth. Since the industrialization revolution, Malaysia has depends on foreign direct investment (FDI) and international trade to push its manufacturing industries. Through exploring the effect of FDI and trade would provide information on the relation of these factors in enhancing Malaysia’s manufacturing industries TFP performance. In applying Data Envelopment Analysis‐Malmquist Productivity Index (DEA‐MPI) on 23 Malaysia’s two‐digit MSIC manufacturing industries over a period of 1980‐2011, the study objective in estimating TFP performance and its component of the Malaysia’s manufacturing industries was achieved. Thus, with this finding through employment of fixed effect model the effect of FDI and trade to TFP and its component in Malaysia’s manufacturing industries was realized. Instate of comparing the TFP performance of Malaysia’s manufacturing industries and identify the TFP component, the study went to another step in relating it with present policy and strategies as well as the economic situation. This proved the contribution of FDI and trade in Malaysia’s manufacturing industries development.

Page 169 of 172


Presentation No

165

Paper#

292

Authors:

Fadzlan Sufian and Nor Halida Haziaton Mohd Noor

Speaker

Halida Mohd Noor

Title:

THE IMPACT OF REGULATION AND SUPERVISION ON ISLAMIC BANKS’ EFFICIENCY




Abstract: Bank regulation and supervision play important roles in maintaining a balance between competition and risk taking activities in the financial sector by establishing prudential rules for achieving an effective operational framework and risk management. Furthermore, prudent supervision in Islamic banking framework is as equally important as in the conventional banking. By using data on 108 banks from 26 countries this paper provides international evidence on the impact of regulation and supervision on the performance of Islamic banks. The study employs the non‐parametric frontier approach, Data Envelopment Analysis (DEA) to estimate the technical efficiency of individual Islamic banks in the sample. We then use Fixed Effects Model (FEM) and Random Effects Model (REM) panel regression models to investigate the impacts of regulation and supervision on the efficiency of Islamic banks. The empirical findings from this study are crucially important to help improve the institutional, regulatory, and supervisory framework of Islamic banks in order to increase their efficiency levels.

Page 170 of 172


Presentation No

166

Paper#

298

Authors:

Qing Li

Speaker

Qing Li

Title:

The Efficiency of Inviting Foreign Investment in Cities of Economic Zone on the Basis of DEA




Abstract: Cities in Beibu Gulf Economic Zone of China have location advantage as an important transport hub between China and Association of Southeast Asian Nations and many preferential policies to attract foreign investment. Application DEA to efficiency of inviting foreign investment not only improves quality of foreign investment, but also improves utilization of foreign investment in these cities. The cities in Beibu gulf economic zone, as decision units, are selected. According to input and output from foreign investment, an evaluation index system for efficiency of inviting foreign investment is built in the research. Next, redundant input and insufficient output for inviting foreign investment in cities of the economic zone are analyzed by empirical method. Then the result shows effectiveness, redundant inputs and insufficient outputs. Finally, some suggestions for efficiency of inviting foreign investment are given.

Page 171 of 172


Presentation No

167

Paper#

129

Authors:

Fauzi Zainir, Hsieng Yang Koh, Sok Gee Chan and Aidil Rizal Shahrin

Speaker

Fauzi Zainir

Title:

The impact of supervisory, regulation and market structure changes on bank efficiency in Asean‐4




Abstract: The increasingly stricter supervisory regimes (especially Basel II and Basel III), greater regulation and the changing market structure, present challenges in resource allocation for banks which in turn affect their efficiency. This research studies the impact of supervisory, regulation and market structure changes on the efficiency of commercial banks in four emerging ASEAN countries: Indonesia, Malaysia, the Philippines, and Thailand. A two‐stage approach is adopted to determine the relationship between supervision, regulation and market structure on bank efficiency. First, it uses the non‐radial Slack Based Model of Data Envelopment Analysis to estimate profit efficiency scores for the period 1998 to 2011. Second, it employs Tobit regression and Generalised Method of Moments (GMM) to determine the static and dynamic impact of changes in banking supervision, regulation and market structure on bank efficiency. This paper contributes in two ways: (1) the two‐stage approach provides more rigour in reaffirming the impact of these changes on efficiency, and (2) the findings provide insights for policymakers and practitioners for continuous efficiency improvement in light of ongoing changes.

Page 172 of 172

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