Data Envelopment Analysis under Constant Returns to Scale: General Models

2001 ◽  
pp. 65-88
Author(s):  
Emmanuel Thanassoulis
Keyword(s):  
Data Envelopment Analysis ◽  
Returns To Scale ◽  
Data Envelopment ◽  
Constant Returns To Scale

scholarly journals Applying data envelopment analysis to operating performance in textile industry

2013 ◽  
Vol 13 (4) ◽  
pp. 99-103 ◽  
Author(s):  
Chia-Hui Ho
Keyword(s):  
Data Envelopment Analysis ◽  
Textile Industry ◽  
Market Competition ◽  
Operating Performance ◽  
Returns To Scale ◽  
Operating Efficiency ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Optimal Operating ◽  
Constant Returns To Scale

Abstract Operating performance could affect the survival and future development of a business that both businesses and business managers would devote to the enhancement of operating performance. Having developed for more than four decades, the consistent upstream, mid-stream and downstream system have been constructed in domestic textile industry. The output value of textiles in Taiwan has exceeded 480 billion NT dollars, which is not a sunset industry, as generally described. The impacts of high labour cost, environmental protection measures and changes of capital market as well as the competition of emerging countries, particularly Mainland China, have made textile industry in Taiwan face great market competition and pressure. Since textiles are regarded as one of the major products in Taiwan, the operating performance could affect the survival of the overall industry. In this case, operating performance survey of textile manufacturers in Taiwan during 2010–2012 is combined with Data Envelopment Analysis and Slack Variable Analysis to measure the total efficiency, pure technical efficiency and scale efficiency of top 12 textile manufacturers in Taiwan, tending to provide the reference of operating efficiency improvement for the manufacturers. The empirical results show that the overall efficiency in the 3 years appears 0.89 averagely. The relative efficiency (1) between two manufacturers, Far Eastern New Century and Ruentex Industries, achieves the optimal operating efficiency, whereas the remaining 10 are comparatively worse. Regarding the analysis of returns to scale, two textile manufacturers present constant returns to scale, with the optimal operating efficiency, whereas the remaining 10 show increasing returns to scale, revealing that expanding the scale could enhance the marginal return and further promote the efficiency.

scholarly journals Influence of Constant Returns to Scale and Variable Returns to Scale Data Envelopment Analysis Models in ICT Infrastructure Efficiency Utilization

2021 ◽  
pp. 158-181
Author(s):  
Yinka Oyerinde ◽  
Felix Bankole
Keyword(s):  
Data Envelopment Analysis ◽  
Human Development ◽  
Relative Efficiency ◽  
Returns To Scale ◽  
Data Envelopment ◽  
Information And Communication ◽  
Ict Infrastructure ◽  
Policy Direction ◽  
Constant Returns To Scale ◽  
Variable Returns To Scale

A lot of research has been done using Data Envelopment Analysis (DEA) to measure efficiency in Education. DEA has also been used in the field of Information and Communication Technology for Development (ICT4D) to investigate and measure the efficiency of Information and Communication Technology (ICT) investments on Human Development. Education is one of the major components of the Human Development Index (HDI) which affects the core of Human Development. This research investigates the relative efficiency of ICT Infrastructure Utilization on the educational component of the HDI in order to determine the viability of Learning Analytics using DEA for policy direction and decision making. A conceptual model taking the form of a Linear Equation was used and the Constant Returns to Scale (CRS) and Variable Returns to Scale (VRS) models of the Data Envelopment Analysis were employed to measure the relative efficiency of the components of ICT Infrastructure (Inputs) and the components of Education (Outputs). Results show a generally high relative efficiency of ICT Infrastructure utilization on Educational Attainment and Adult Literacy rates, a strong correlation between this Infrastructure and Literacy rates as well, provide an empirical support for the argument of increasing ICT infrastructure to provide an increase in Human Development, especially within the educational context. The research concludes that DEA as a methodology can be used for macroeconomic decision making and policy direction within developmental research.

scholarly journals Productivity Benchmarking Using Analytic Network Process (ANP) and Data Envelopment Analysis (DEA)

2018 ◽  
Vol 2 (3) ◽  
pp. 27 ◽  
Author(s):  
Shanta Mazumder ◽  
Golam Kabir ◽  
M. Hasin ◽  
Syed Ali
Keyword(s):  
Data Envelopment Analysis ◽  
Returns To Scale ◽  
Analytic Network Process ◽  
Data Envelopment ◽  
Contributing Factors ◽  
Productivity Measurement ◽  
Apparel Manufacturing ◽  
Network Process ◽  
Dea Approach ◽  
Constant Returns To Scale

Measuring productivity is the systematic process for both inter- and intra-organizational comparisons. The productivity measurement can be used to control and facilitate decision-making in manufacturing as well as service organizations. This study’s objective was to develop a decision support framework by integrating an analytic network process (ANP) and data envelopment analysis (DEA) approach to tackling productivity measurement and benchmarking problems in a manufacturing environment. The ANP was used to capture the interdependency between the criteria taking into consideration the ambiguity and vagueness. The nonparametric DEA approach was utilized to determine the input-oriented constant returns to scale (CRS) efficiency of different value-adding production units and to benchmark them. The proposed framework was implemented to benchmark the productivity of an apparel manufacturing company. By applying the model, industrial managers can gain benefits by identifying the possible contributing factors that play an important role in increasing the productivity of manufacturing organizations.

scholarly journals Pengukuran Efisiensi Kinerja Sekolah Dasar lewat Model Data Envelopment Analysis

2017 ◽  
Vol 36 (2) ◽  
Author(s):  
Siti Fatimah ◽  
Umi Mahmudah
Keyword(s):  
Elementary Schools ◽  
Data Envelopment Analysis ◽  
Parametric Method ◽  
Returns To Scale ◽  
Scale Model ◽  
Data Envelopment ◽  
Public Elementary Schools ◽  
Crs Model ◽  
Using Data ◽  
Constant Returns To Scale

This study aims to measure the performance efficiency of elementary schools in Special Capital Region of Jakarta, especially Central Jakarta district in the period 2014/2015 by using data envelopment analysis (DEA) approach. DEA is a non-parametric method to measure efficiency of decision making units (DMUs). DEA compares several homogeneous DMUs based on a number of inputs to produce the expected outputs. This study uses descriptive method using DMU as many as 103 public elementary schools that are A-accredited with three inputs and four outputs. Data is analyzed using DEAP version 2.1 application by comparing CRS (Constant Returns to Scale) model and VRS (Variable Returns to Scale) model. Results show that: 1) in CRS model, there are 8 public elementary schools (7.77 percent) have efficient performances while in VRS model there are 14 public elementary schools (13.59 percent) have efficient performances; 2) VRS model is better than CRS model in measuring the efficiency performance of public elementary schools in Central Jakarta.

Efficiency of Small-scale Irrigation Farmers in Northern Ghana: A Data Envelopment Analysis Approach

2020 ◽  
Vol 14 (3) ◽  
pp. 332-352
Author(s):  
Abdulai Adams ◽  
Bedru Balana ◽  
Nicole Lefore
Keyword(s):  
Data Envelopment Analysis ◽  
Returns To Scale ◽  
Allocative Efficiency ◽  
Analysis Approach ◽  
Northern Ghana ◽  
Small Scale ◽  
Data Envelopment ◽  
Tobit Regression ◽  
Vegetable Farmers ◽  
Constant Returns To Scale

This study measures and explains technical efficiency (TE), economic efficiency and allocative efficiency of 110 small-scale vegetable farmers practicing various irrigation technologies for increased productivity. We employed the two-stage approach to estimate efficiency scores under constant returns to scale (CRS) and variable returns to scale (VRS) specifications. First, using a linear programming method, efficiency scores of the irrigated vegetable farmers were measured using the data envelopment analysis approach. The results show that about 27.3 per cent of the farmers currently operate on the production possibility frontier and are technically efficient, while 3.6 per cent were found to be both economically and allocatively efficient. The mean TE score for CRS was 50.6 per cent, compared with 78.1 per cent under the VRS. A Tobit regression at the second-stage analysis revealed that gender, experience, health and credit utilization have significant effects on TE. These results are valuable for stakeholders interested in promoting efficiency in smallholder irrigated production. JEL Classification: C14, C61, D24, D61, Q12

scholarly journals Measuring Tourism Efficiency of European Countries by Using Data Envelopment Analysis

2017 ◽  
Vol 13 (10) ◽  
pp. 31 ◽  
Author(s):  
Halenur Soysal-Kurt
Keyword(s):  
Data Envelopment Analysis ◽  
Relative Efficiency ◽  
Returns To Scale ◽  
Tourism Industry ◽  
European Countries ◽  
Data Envelopment ◽  
Micro Level ◽  
Input Variables ◽  
Using Data ◽  
Constant Returns To Scale

This study aims to measure relative efficiency of 29 European countries with the data of the year 2013 using input-oriented and constant returns to scale Data Envelopment Analysis and to offer improvement suggestions for the countries found inefficient based on their measured relative efficiency scores. Three input and three output variables are used to assess relative performances of the countries. In this study, tourism expenses, number of employees and number of beds are used as input variables; tourism receipts, tourist arrivals and number of nights spent are used as output variables. As the result of the analysis, 16 countries are found relatively efficient and 13 countries are found relatively inefficient. This study is one of the few publications within the scope of European countries based on data envelopment analysis. Unlike most researches evaluating the efficiency of tourism establishments at the micro level, this paper is thought to contribute to the related literature as it evaluates relative efficiency of the countries at the macro level for tourism industry. Considering the variables used in the analysis, it is expected to give ideas to relatively inefficient European countries on efficiency improvement.

scholarly journals Assessing Efficiency in the Pharmaceutical Sector of Nigeria

2019 ◽  
pp. 131-147
Author(s):  
Efayena, O. Obukohwo ◽  
Enoh H. Olele ◽  
Patricia N. Buzugbe
Keyword(s):  
Data Envelopment Analysis ◽  
Research And Development ◽  
Returns To Scale ◽  
Data Envelopment ◽  
Policy Mix ◽  
Pharmaceutical Sector ◽  
Pharmaceutical Firms ◽  
Constant Returns To Scale ◽  
Variable Returns To Scale ◽  
Non Parametric

The study analyses, empirically, the efficiency of the Pharmaceutical sector in Nigeria. Employing a balanced panel of 20 pharmaceutical firms between 2012 and 2016, the paper uses a non-parametric technique (Data Envelopment Analysis) to analyze the firms' efficiency under the constant returns to scale (CRS) and variable returns to scale (VRS) assumptions. The results obtained shows inefficiency in the pharmaceutical sector as it operates under a decreasing return to scale. This calls for an appropriate policy mix to stimulate the efficiency of the pharmaceutical sector in Nigeria by enhancing research and development (R&D) as well as regulations within the sector.

scholarly journals PROBABILISTIC HUMAN DEVELOPMENT INDICES

2015 ◽  
Vol 12 (1) ◽  
pp. 136 ◽  
Author(s):  
Annibal Parracho Sant'Anna
Keyword(s):  
Data Envelopment Analysis ◽  
Human Development ◽  
Human Development Index ◽  
Choquet Integral ◽  
Returns To Scale ◽  
The Other ◽  
Data Envelopment ◽  
Development Index ◽  
Constant Returns To Scale ◽  
Joint Probabilities

Alternative indicators to the Human Development Index adopting the same components but using other forms of combination are discussed here. The basic idea is to transform the initial measurements into probabilities of achieving the worst performance. Joint probabilities are compared to the proximity to the frontier generated by the algorithm of Data Envelopment Analysis with constant returns to scale and constant inputs to scores applying the Choquet integral with respect to capacities that take into account the substitutability between the components of the index. A high correlation between the results of different forms of composition was found, demonstrating the robustness of the Human Development Index. On the other hand, advantages of different alternatives of composition could be noticed.

scholarly journals DATA ENVELOPMENT ANALYSIS OF RUBBER SMALLHOLDERS: BCC AND CCR MODELS AND BOOTSTRAPPING TECHNIQUE

2018 ◽  
Vol 6 (5) ◽  
pp. 346-368
Author(s):  
A. ALIYU ◽  
K. BELLO
Keyword(s):  
Data Envelopment Analysis ◽  
Marital Status ◽  
Returns To Scale ◽  
Peninsular Malaysia ◽  
Data Envelopment ◽  
Tobit Regression ◽  
Traditional Concept ◽  
Tobit Regression Analysis ◽  
Socio Demographic Factors ◽  
Constant Returns To Scale

The present study examined the economic efficiency of rubber smallholders in Peninsular Malaysia in a disaggregated form using Banker Charnes and Cooper (BCC) and Charnes Cooper and Rhodes (CCR) models of data envelopment analysis (DEA) as well as their respective bootstrap techniques. Multistage data collection was employed on 327 smallholders among 5 districts of Negeri Sembilan state. However, only 307 observations were used in computing inferential statistics, because the young-age category has been removed. The districts include Seremban, Tampin, Rembau, Kuala Pilah and Jempol. The results revealed that, the mean technical efficiency (TE) under variable returns to scale (VRS) and constant returns to scale (CRS) were 0.95, 0.97 0.96 and 0.45, 0.61, 0.33 for the all-age, matured-age and old-age crops respectively. The findings of the result also disclosed that naïve DEA has higher mean scores than bootstrapped-DEA, thus indicating the presence of bias in the former and absence of bias in the later. Also, the efficiency determinants under VRS and CRS as well as their respective bias-corrected (BC) efficiency scores were also analyzed using Tobit regression analysis against the 15 socio-demographic factors. It was found out that critical factors, common to all the age-categories, include educational level, tapping system and marital status under VRS and BC-VRS assumptions, while under CRS and BC-CRS assumptions include race, tapping system, marital status and farm’s distance. Therefore, education of smallholders should be given more attention to increase efficiency.  The study finally recommends that the traditional concept of computing efficiency or productivity of rubber and other perennial crops in an aggregated form should be complemented with the disaggregated form as this eliminates any bias and gives meaningful results. Improved methods such as bootstrapping should also be used as this only gives what is called bias-corrected efficiency scores. Regarding the determinants, factors such as education, tapping system and farm distance should be given more emphasis.

Sign in / Sign up

Export Citation Format

Share Document