DEA window analysis and Malmquist index to assess efficiency and productivity in the Spanish electricity sector

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jaime Sánchez-Ortiz ◽  
Teresa Garcia-Valderrama ◽  
Vanesa Rodríguez-Cornejo ◽  
Francisca Cabrera-Monroy
Keyword(s):  
Malmquist Index ◽  
Electricity Sector ◽  
Theory Of Constraints ◽  
Economic Regulation ◽  
Data Envelopment ◽  
Electricity Distribution ◽  
Content Type ◽  
External Constraints ◽  
Efficiency And Productivity ◽  
Dea Window Analysis

Purpose The purpose of this paper is to demonstrate that overcapacity and tariff deficit (external constraints) negatively affect the efficiency of distribution firms in the Spanish electricity sector. To do this, the paper is based on the theory of constraints and theory of economic regulation. Design/methodology/approach Data envelopment analysis (DEA) window methodology is carried out on the constant scales (I-C) with a sample consisting of five main distribution firms during the period from 2006 to 2015. In turn, an analysis of the Malmquist index is carried out to assess whether it has had a displacement with respect to the efficiency frontier. Findings The results show that the overcapacity and the tariff deficit negatively affect the efficiency of the distribution firms of the Spanish electricity sector. In addition, there is an existence of external constraints that affect the activities of regulated organisations and the importance of adequate legislation in regulated sectors. Originality/value This study defines a model that shows how the efficiency problems associated with electricity distribution companies such as productive overcapacity or tariff deficit can be measured based on the theory of constraints and theory of economic regulation.

Efficiency and productivity analysis of Indian banking industry using Hicks-Moorsteen approach

2014 ◽  
Vol 63 (1) ◽  
pp. 57-84 ◽  
Author(s):  
Supran Kumar Sharma ◽  
Raina Dalip
Keyword(s):  
Productivity Growth ◽  
Banking Sector ◽  
Banking Industry ◽  
Malmquist Index ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Productivity Analysis ◽  
Financial Reforms ◽  
Content Type ◽  
Efficiency And Productivity

Purpose – The purpose of this paper is to attempt to measure the performance of the Indian banking sector in terms of efficiency and productivity levels and their determinants during the post-reform period. Design/methodology/approach – The present study is a novel attempt as it has used pooled data for a duration of 15 years (i.e. 1997/1998-2010/2011) from 59 selected banks for estimating the Hicks-Moorsteen (HM) total factor productivity (TFP) index. Findings – Poor technical efficiency has experienced with scale efficiency change exerting dominant factors; whereas relatively better productivity growth has been experienced by the banks with major contributions from technical change components. The study found relatively underestimated efficiency and productivity levels by traditional data envelopment analysis-based Malmquist index. Additionally, the study brings into account the results for external and environmental determining factors contributing to the TFP growth. Originality/value – Using HMTFP indices has helped to eliminate certain drawbacks of data envelopment and provided the more elaborative decomposition of productivity growth along with their components so as to have lucid and multidimensional insights about the performance of the Indian banking industry after the initiation of financial reforms.

Application of a robust data envelopment analysis model for performance evaluation of electricity distribution companies

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Alireza Fallahi ◽  
Fatemeh Fallahi ◽  
Hassan Sarhadi ◽  
S.F. Ghaderi ◽  
Reza Ebrahimi
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Stability Test ◽  
Productivity Change ◽  
Data Envelopment ◽  
Electricity Distribution ◽  
Productivity Measurement ◽  
Content Type ◽  
Informed Decisions ◽  
Efficiency And Productivity

Purpose This study evaluates the efficiency and productivity change of 39 electricity distribution companies in Iran over the period 2005-2014. For purposes of electricity management and utilization of scarce resources, Iran’s 33 provinces have been classified into five regions by the Ministry of the Interior. Analyzing the efficiency of distribution companies across these regions yields significant understanding of these resources and helps policymakers to generate more informed decisions. Design/methodology/approach The proposed method of this study develops nonparametric data envelopment analysis (DEA) with the consideration of geographic classification, size and type of company. At the first stage, a DEA model is used to estimate the relative technical efficiency and productivity change of these companies. At the second stage, distributions of efficiency improvements are examined based on geographic classification, size and type of the company type. A stability test is also conducted to verify the proposed model’s robustness. Findings The results demonstrate that the average technical efficiency of the companies increased during the years 2006-2009, but decreased during 2010-2014. The productivity measurement reveals that low efficiency change was the largest contributor to the small increase in productivity change rather than technology change. In addition, testing the hypothesis that the large and small companies have statistically the same efficiency scores revealed no statistical difference among them. Moreover, another test did not detect a difference among companies at the urban and provincial levels. Practical implications By applying this approach, policymakers and practitioners in the power industry at the country and corporate level can effectively compare the efficiency and productivity changes among electricity distribution companies, and therefore generate more informed decisions. Originality/value The paper’s novel concept applies DEA to Iran’s electricity distribution companies and analyzes them by examining geographic classification, size and the type of the companies. In addition, a stability test is conducted and productivity changes are estimated.

Longitudinal evaluation of efficiency in a petrochemical company

2017 ◽  
Vol 24 (7) ◽  
pp. 1786-1813 ◽  
Author(s):  
Charles Von Gilsa ◽  
Daniel Pacheco Lacerda ◽  
Luis Felipe Riehs Camargo ◽  
Iberê Guarani Souza ◽  
Ricardo Augusto Cassel
Keyword(s):  
Learning Process ◽  
Statistical Significance ◽  
Malmquist Index ◽  
Internal Reference ◽  
Content Type ◽  
Internal Resources ◽  
Investment Projects ◽  
Actual Change ◽  
Petrochemical Company ◽  
Efficiency And Productivity

Purpose The purpose of this paper is to longitudinally assess the technical efficiency and productivity, considering investment projects and technological change, in a second-generation petrochemical company. Design/methodology/approach The study uses data envelopment analysis (DEA) together with the Malmquist index to measure efficiency during the analysis periods. The working method consists of four main phases, namely development of the conceptual model, construction of the mathematical model, application of model to the case, and analysis of the results. The study utilizes a quantitative approach with descriptive goals seeking to evaluate the impacts of technical changes on the operational efficiency and productivity of the production process. Findings The use of DEA associated with the Malmquist index proved to be viable for analyzing a single company and identifying efficiency improvements, as well as the impacts of the learning process and the implementation of improvement projects. However, the results of the improvement projects and learning process were not representative and had no statistical significance on the actual change in efficiency of the company during the periods analyzed. For the case in question, the learning process and continuous improvement were not observed during all study periods. Practical implications The proposition that the improvement projects and investments implemented increased the efficiency of the company was rejected. Hence, with this work, it was possible to determine that the company unnecessarily invested resources in projects to increase efficiency. Furthermore, the company could have explored more internal resources before making significant investments in increased efficiency. Originality/value As for the value of this research in the theoretical and academic scope, this paper advances knowledge on the application of DEA because it proposes to establish an internal reference benchmarking for comparison. The literature contains few studies that analyze organizations using continuous processes, such as petrochemical processes, in longitudinal studies as a function of time, especially with the use of DEA.

Efficiency of the electricity sector in Mexico 2008-2015

2020 ◽  
Vol 14 (4) ◽  
pp. 683-706
Author(s):  
César Lenin Navarro-Chávez ◽  
Odette V. Delfín-Ortega ◽  
Atzimba Díaz-Pulido
Keyword(s):  
Network Model ◽  
Social Impact ◽  
Electricity Sector ◽  
Data Envelopment ◽  
Content Type ◽  
The North ◽  
Analysis Methodology ◽  
Factor Rotation ◽  
The Social ◽  
Components Method

Purpose The purpose of this paper is to determine the level of efficiency in the Mexico electricity industry during the 2008-2015 period. Design/methodology/approach A data envelopment analysis (DEA) network model is proposed, where technical efficiency is calculated. A factorial analysis using the principal components method was carried out first. Later, latent dimensions were calculated through the variance criterion and sedimentation graph, where four components were presented. After performing factor rotation, the nodes were grouped: generation, transmission, distribution and sales. It proceeded later to structure a DEA network model. Findings From the calculations made, the most efficient node was the transmission, while the North Gulf and East Center divisions were the only efficient. Research limitations/implications The limitations presented in this study were data collection. Practical implications The implications that were observed were that through the results obtained, proposals can be made to the Mexican electricity sector to improve each of the nodes, and have a better operation and reduce energy losses. Social implications The social impact of this type of study is that based on the results obtained, they present the basis for improving energy policy and users can have a better service that has better quality and coverage. Originality/value The originality of this study consists in the use of two methodologies, factor analysis methodology and DEA network model.

scholarly journals The restructuring of the Spanish banking system: analysis of the efficiency of financial entities

2018 ◽  
Vol 56 (2) ◽  
pp. 474-487 ◽  
Author(s):  
Emilio Martín ◽  
Alfredo Bachiller ◽  
Patricia Bachiller
Keyword(s):  
System Analysis ◽  
Malmquist Index ◽  
Banking System ◽  
Future Research ◽  
Data Envelopment ◽  
Content Type ◽  
Before And After ◽  
Banking Business ◽  
Managerial Implications ◽  
Credit Restriction

Purpose The purpose of this paper is to analyse the performance of Spanish banking entities between 2009 and 2013, a period marked by the reform of the banking system with a large number of mergers and integrations. Design/methodology/approach First, efficiency is measured applying the data envelopment analysis (DEA) methodology and, then, the Malmquist index is calculated to assess its evolution. Findings The results show that most of the entities have improved their performance from the production approach. However, from the intermediation approach, the efficiency of the sample has deteriorated, which raises questions about the sustainability of the traditional banking business when the current credit restriction strategy is long lasting. Practical implications The comparative analysis demonstrates that, after the deep reforms carried out in Spain, the banking entities maintain similar efficiency rankings to those they had at the beginning of the period analysed. This shows that the reform has created new groups that operate adequately, avoiding the closing of institutions. Despite the better rationalisation of the available resources, the outlook for Spanish banks remains unclear in the current macroeconomic context, which does not favour the banking business. Originality/value The study contributes to the literature on the Spanish banking system because it adds new empirical evidence about its restructuring and it applies a DEA model to a sample before and after mergers. The authors discuss theoretical and managerial implications and offer suggestions for future research on this field.

Productivity changes in Indian steel plants: DEA approach

2018 ◽  
Vol 35 (5) ◽  
pp. 1093-1114 ◽  
Author(s):  
Pankaj Kumar ◽  
J. Maiti
Keyword(s):  
Technical Efficiency ◽  
Management Control ◽  
Data Envelopment ◽  
Content Type ◽  
Multiple Input ◽  
Output Factors ◽  
Productivity Indices ◽  
Changes Over Time ◽  
Efficiency And Productivity

Purpose The purpose of this paper is to evaluate the technical efficiency and productivity changes in the integrated steel plants in India over a period of five years. Design/methodology/approach Since this evaluation of integrated steel plants needs consideration of multiple input and output factors, data envelopment analysis (DEA) has been employed including bootstrapping (to account for statistical noise) to evaluate the relative efficiency of the steel manufacturing units. The efficiency and Malmquist productivity indices of a sample of ten integrated steel plants producing around 55 percent of the industry’s output were determined for the period 2008-2013. The results of these changes were further categorized according to the management control, route followed to produce crude steel, size and age of these steel plants, for gaining insights. Findings The study finds that private sector steel plants with larger capacity and which have adopted the latest and most modern technologies are more efficient and productive over the study period. Practical implications Public sector steel plants should therefore be provided with more autonomy and delegation of power and should be agiler in responding to market requirements as well as increasing their installed capacities to be competitive in technical efficiency and productivity as well as profitability in the long term to ensure sustainable achievements. Originality/value Productivity changes over time, both with respect to technological and efficiency changes, for the Indian integrated steel plants producing comparable products using DEA.

scholarly journals Efficiency and Productivity Performance of the National Private Banks in Indonesia

2007 ◽  
Vol 9 (1) ◽  
pp. 1 ◽  
Author(s):  
Mohd. Azmi Omar ◽  
M. Shabri Abd. Majid ◽  
Ronald Rulindo
Keyword(s):  
Productivity Growth ◽  
Technical Change ◽  
Banking Industry ◽  
Malmquist Index ◽  
Data Envelopment ◽  
Islamic Banks ◽  
Efficiency Change ◽  
Private Banks ◽  
Using Data ◽  
Efficiency And Productivity

This study investigates the efficiency and productivity performance of the national private banks in Indonesia during the period of 2002-2004. The data consist of 21 national private banks including two Islamic banks. Productivity is measured by the Malmquist Index using Data Envelopment Analysis (DEA) technique. Overall, the result shows that the Total Factor Production (TFP) Index of the national private banks has considerably increased for the whole industry, in which technical change is found to be a more important source of productivity growth to the Indonesian Banking Industry compared to efficiency change. Furthermore, the result also shows that the efficiency of two Islamic banks is above the average efficiency of the national private banks.

Effects of cross-border acquisitions on efficiency and productivity of acquired companies: evidence from cement industry

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Slađana Savović ◽  
Predrag Mimović
Keyword(s):  
Data Envelopment Analysis ◽  
Transitional Economies ◽  
Cement Industry ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Data Envelopment ◽  
Content Type ◽  
Cross Border ◽  
Efficiency And Productivity ◽  
Practical Implications

PurposeThe purpose of this paper is to explore the effects of cross-border acquisitions on the efficiency and productivity of acquired companies in the cement industry in the context of a transitional economy.Design/methodology/approachThe Data Envelopment Analysis (DEA) and Malmquist Productivity Index were used to assess the efficiency and productivity of the acquired companies over the period 2000–2018. DEA and Malmquist index are combined with bootstrapping to perform succinct statistical inferences for determining the accuracy of results. The study assesses partial efficiency and productivity of three inputs: material, capital and labour, as well as the total factor efficiency and productivity of the acquired companies in the short and long term after the acquisitions.FindingsThe research results suggest that efficiency of material, efficiency of labour and the total factor efficiency of the acquired companies are higher after the acquisitions than before, while efficiency of capital is lower. In addition, the results show that the acquisitions had a positive impact on total factor productivity of the acquired companies.Practical implicationsThe results of this study have practical implications for managers, especially for policy-makers and industry analysts in deciding whether to encourage or discourage cross-border acquisitions in transitional economies.Originality/valueThe study contributes to a better understanding of the impact of cross-border acquisitions on efficiency and productivity of acquired companies in the manufacturing industry. Research in transitional economies related to subject matter is limited, and this study is the first empirical investigation of the effect of cross-border acquisitions on the efficiency and productivity in the cement industry in Serbia by applying the Data Envelopment Analysis.

International acquisitions on efficiency and productivity of the Serbian cement industry

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Slađana Savović ◽  
Predrag Mimović ◽  
Violeta Domanović
Keyword(s):  
Malmquist Index ◽  
Analysis Data ◽  
Cement Industry ◽  
International Acquisitions ◽  
Content Type ◽  
Aggregated Data ◽  
Short Period ◽  
Accuracy Of Results ◽  
The Impact ◽  
Efficiency And Productivity

PurposeThis paper explores the impact of international acquisitions on the efficiency and productivity of the cement industry in an emerging economy.Design/methodology/approachThe data envelopment analysis (DEA) and Malmquist index (MI) are used to calculate the partial efficiency and productivity of individual inputs (materials, labour and fixed assets), as well as the total factor efficiency and productivity during the period 2000–2018. DEA and MI are combined with bootstrapping to perform succinct statistical inferences for determining the accuracy of results. In this paper we apply the input-oriented CCR DEA Window model. With respect to the level of analysis, data was collected from individual companies and then aggregated data at the industry level.FindingsThe research results show that international acquisitions positively affect efficiency of the cement industry in the long term. Efficiency of capital is lower in the short period after acquisitions. Additionally, international acquisitions positively affect partial productivity, as well as total factor productivity of the cement industry.Practical implicationsThe results of the study may be significant for managers and policy makers to design appropriate strategies for the improvement of the cement industry performance over time.Originality/valueResearch in emerging economies related to subject matter is limited, and this is one of the earliest research studies which explore change in efficiency and productivity at the level of Serbian cement industry.

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