scholarly journals Outliers in data envelopment analysis

2016 ◽  
Vol 9 (2) ◽  
pp. 168-183 ◽  
Author(s):  
Taylor Boyd ◽  
Grace Docken ◽  
John Ruggiero
Keyword(s):  
Data Envelopment Analysis ◽  
Design Methodology ◽  
Data Envelopment ◽  
Production Frontier ◽  
Real World Data ◽  
Content Type ◽  
Maximum Likelihood Approach ◽  
Efficiency Measures ◽  
Likelihood Approach ◽  
Stochastic Data

Purpose The purpose of this paper is to improve the estimation of the production frontier in cases where outliers exist. We focus on the case when outliers appear above the true frontier due to measurement error. Design/methodology/approach The authors use stochastic data envelopment analysis (SDEA) to allow observed points above the frontier. They supplement SDEA with assumptions on the efficiency and show that the true frontier in the presence of outliers can be derived. Findings This paper finds that the authors’ maximum likelihood approach outperforms super-efficiency measures. Using simulations, this paper shows that SDEA is a useful model for outlier detection. Originality/value The model developed in this paper is original; the authors add distributional assumptions to derive the optimal quantile with SDEA to remove outliers. The authors believe that the value of the paper will lead to many citations because real-world data are often subject to outliers.

Efficiency of banks in Southeast Asia: Indonesia, Malaysia, Philippines and Thailand

2017 ◽  
Vol 44 (12) ◽  
pp. 2302-2312 ◽  
Author(s):  
Shazida Jan Mohd Khan ◽  
Shamzaeffa Samsudin ◽  
Rabiul Islam
Keyword(s):  
Data Envelopment Analysis ◽  
Southeast Asia ◽  
Design Methodology ◽  
The Philippines ◽  
Data Envelopment ◽  
Bank Efficiency ◽  
Financial Reforms ◽  
Content Type ◽  
Cross Country

Purpose The purpose of this paper is to use the concept of meta-frontiers data envelopment analysis (DEA) to compare the technical efficiencies of banks in selected Southeast Asia countries in the periods of 1998-2012. Design/methodology/approach The authors evaluate bank efficiency in Indonesia, Malaysia, Thailand and the Philippines by means of DEA, and the authors employ a meta-frontiers approach to calculate efficiency scores in a cross-country setting. Findings The analysis shows that even there are some similarities in the process of financial reforms undertaken in the selected countries, the observed efficiency levels of banks vary substantially across the market. Originality/value It is crucial to take into consideration of different technologies in explaining the efficiency differences.

A comparative approach of stochastic frontier analysis and data envelopment analysis estimators: evidence from banking system

2020 ◽  
Vol 47 (7) ◽  
pp. 1787-1810
Author(s):  
Kekoura Sakouvogui
Keyword(s):  
Data Envelopment Analysis ◽  
Cost Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Data Envelopment ◽  
Content Type ◽  
Frontier Analysis ◽  
Efficiency Measures ◽  
Clustering Approach ◽  
Over Time

PurposeThe consistency of stochastic frontier analysis (SFA) and data envelopment analysis (DEA) cost efficiency measures using a sample of 650 commercial and domestic banks in the United States is investigated based on cluster analysis while accounting for the yearly variation in banks.Design/methodology/approachDue to the importance of efficiency measures for policy and managerial decision-making, the cost efficiency measures of SFA and DEA estimators are examined according to four criteria: levels, rankings, stability over time and stability over clustering groups. In this paper, we present two clustering methods, Gap Statistic and Dindex, that involve SFA and DEA cost efficiency measures. The clustering approach creates homogeneous groups of banks offering a similar mix of efficiency levels. Hence, each evaluated bank knows the cluster to which it belongs. Furthermore, this paper provides nonparametric statistical tests of SFA and DEA cost efficiency measures estimated with and without a clustering approach.FindingsThe results suggest that the clustering approach plays a considerable role in the rankings of US banks. Furthermore, the average SFA and DEA cost efficiency measures over time of the homogeneous US banks are substantially higher than those of the heterogeneous US banks.Originality/valueThis research is the first to provide comparative efficiency measures needed for desirable policy conclusions of heterogeneous and homogeneous US banks.

Measuring operational efficiency of isolation hospitals during COVID-19 pandemic using data envelopment analysis: a case of Egypt

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahmoud Abdelrahman Kamel ◽  
Mohamed El-Sayed Mousa
Keyword(s):  
Data Envelopment Analysis ◽  
Design Methodology ◽  
Operational Efficiency ◽  
Data Envelopment ◽  
Allocation Of Resources ◽  
Tobit Regression ◽  
Health Crisis ◽  
Content Type ◽  
Dea Analysis ◽  
Using Data

PurposeThis study used Data Envelopment Analysis (DEA) to measure and evaluate the operational efficiency of 26 isolation hospitals in Egypt during the COVID-19 pandemic, as well as identifying the most important inputs affecting their efficiency.Design/methodology/approachTo measure the operational efficiency of isolation hospitals, this paper combined three interrelated methodologies including DEA, sensitivity analysis and Tobit regression, as well as three inputs (number of physicians, number of nurses and number of beds) and three outputs (number of infections, number of recoveries and number of deaths). Available data were analyzed through R v.4.0.1 software to achieve the study purpose.FindingsBased on DEA analysis, out of 26 isolation hospitals, only 4 were found efficient according to CCR model and 12 out of 26 hospitals achieved efficiency under the BCC model, Tobit regression results confirmed that the number of nurses and the number of beds are common factors impacted the operational efficiency of isolation hospitals, while the number of physicians had no significant effect on efficiency.Research limitations/implicationsThe limits of this study related to measuring the operational efficiency of isolation hospitals in Egypt considering the available data for the period from February to August 2020. DEA analysis can also be an important benchmarking tool for measuring the operational efficiency of isolation hospitals, for identifying their ability to utilize and allocate their resources in an optimal manner (Demand vs Capacity Dilemma), which in turn, encountering this pandemic and protect citizens' health.Originality/valueDespite the intensity of studies that dealt with measuring hospital efficiency, this study to the best of our knowledge is one of the first attempts to measure the efficiency of hospitals in Egypt in times of health' crisis, especially, during the COVID-19 pandemic, to identify the best allocation of resources to achieve the highest level of efficiency during this pandemic.

Efficiency of glass firms in India: an application of data envelopment analysis

2016 ◽  
Vol 13 (1) ◽  
Author(s):  
Mini Kundi ◽  
Seema Sharma
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Design Methodology ◽  
Large Scale ◽  
Returns To Scale ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Efficiency Measures ◽  
Target Values ◽  
Practical Implications

Purpose The purpose of the present study is to evaluate the efficiency of glass firms in India. Design/methodology/approach Data envelopment analysis (DEA) has been employed to study the technical, scale and super efficiency measures of glass firms in India. Findings Major findings of DEA analysis show that 65 percent firms are found to be technically efficient. Returns to scale analysis indicate that five firms are operating at decreasing returns to scale and two firms are exhibiting increasing returns to scale. Further, results show that small– and medium–scale firms are more efficient than large–scale firms. Old firms are more efficient compared to the young firms and foreign-owned firms are technically more efficient compared to the domestic firms. Practical implications The results of this study would help the managers to assess their relative efficiency and take corrective measures to efficiently use their resources. Originality/value This seems to be the first study to apply DEA to analyze the efficiency of glass firms in India. No previous study on glass industry seems to have decomposed the measure of overall technical efficiency into its components, namely pure technical efficiency and scale efficiency and no study seems to have examined whether ownership, age and size of a firm are significant for its efficiency. In addition, no earlier study seems to have ranked the glass firms based on their efficiency values. Further, target values of inputs and outputs are demonstrated in this study. Stability of efficiency scores is also checked.

scholarly journals Benchmarking freight transportation corridors and routes with data envelopment analysis (DEA)

2018 ◽  
Vol 25 (2) ◽  
pp. 713-742 ◽  
Author(s):  
Isotilia Costa Melo ◽  
Paulo Nocera Alves Junior ◽  
Ana Elisa Perico ◽  
Maria Gabriela Serrano Guzman ◽  
Daisy Aparecida do Nascimento Rebelatto
Keyword(s):  
Data Envelopment Analysis ◽  
Design Methodology ◽  
Composite Index ◽  
Freight Transportation ◽  
Principal Component ◽  
Data Envelopment ◽  
Long Distance ◽  
Content Type ◽  
Inland Waterway ◽  
Infrastructure Investments

Purpose The purpose of this paper is to collectively measure and compare the efficiency of Brazilian and American soybean transport corridors, from farmers to export ports, using the data envelopment analysis (DEA). Design/methodology/approach This paper aims to determine routes from main producing micro-regions to main export ports, specifically using slack-based measure and variables that represent the three pillars of sustainability (economic, social, and environmental). The choice of variables was guided by literature review and analyzed through the principal component analysis. After the application of the model, the quantitative tiebreaking method of the composite index is applied. Findings The findings are coherent with a global report that compares soybean transportation in both countries (Brazil and USA). Efficient routes and corridors tend to present short distance truck trips and long distance train or barge trips. The efficiency of the inland waterway trips depends on how many barges are used in the same expedition. Routes with more than three modes tend to be inefficient which suggest that there is a limit for multimodality. Originality/value Corridor benchmarking is a rare topic in the literature and previous works normally focus on some specific and limited corridor performance characteristics, such as cost. The main contribution of this research is that it expands the discussion regarding corridor benchmarking and it focuses on efficiency as a whole. The paper also proposes a method that can be applied in different logistics contexts, like expanding the study to different countries. More specifically, this method could be used in infrastructure investments programs.

Data envelopment analysis with interactive variables

2015 ◽  
Vol 53 (10) ◽  
pp. 2390-2406 ◽  
Author(s):  
Aibing Ji ◽  
Hui Liu ◽  
Hong-jie Qiu ◽  
Haobo Lin
Keyword(s):  
Data Envelopment Analysis ◽  
Special Form ◽  
Design Methodology ◽  
Data Envelopment ◽  
Content Type ◽  
Dea Model ◽  
Proposed Model ◽  
Choquet Integrals ◽  
Practical Implications ◽  
Decision Making Units

Purpose – The purpose of this paper is to build a novel data envelopment analysis (DEA) model to evaluate the efficiencies of decision making units (DMUs). Design/methodology/approach – Using the Choquet integrals as aggregating tool, the authors give a novel DEA model to evaluate the efficiencies of DMUs. Findings – It extends DEA model to evaluate the DMU with interactive variables (inputs or outputs), the classical DEA model is a special form. At last, the authors use the numerical examples to illustrate the performance of the proposed model. Practical implications – The proposed DEA model can be used to evaluate the efficiency of the DMUs with multiple interactive inputs and outputs. Originality/value – This paper introduce a new DEA model to evaluate the DMU with interactive variables (inputs or outputs), the classical DEA model is a special form.

The relationship between supervision quality, CEO’s ability and authority with firm performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahdi Salehi ◽  
Ameneh Bazrafshan ◽  
Mahdieh Hosseinkamal
Keyword(s):  
Data Envelopment Analysis ◽  
Firm Performance ◽  
Design Methodology ◽  
Business Strategies ◽  
Data Envelopment ◽  
Improve Performance ◽  
Return On Assets ◽  
Content Type ◽  
Listed Firms ◽  
The Relationship

Purpose This paper aims to investigate the relationship between a CEO's ability and authority with firm performance. The authors used a sample of 127 Iranian listed firms for over seven years, from 2011 to 2017. Design/methodology/approach The authors used data envelopment analysis (DEA) to evaluate managers' abilities, and the authors used business strategies to gauge authorities. Also, the methods of Fama–French and Herfindal–Hirschman were used for 889 firm-year observations. Findings The results show that managers' ability based on return on assets can affect firm performance, and skilled managers can improve performance. Originality/value In Iran, managers' abilities and other variables can impact it has been studied. Still, no study has been conducted on managers' strength and their level of authority with the presence of supervision on them.

Simultaneous evaluation of efficiency, input effectiveness, and output effectiveness

2017 ◽  
Vol 24 (7) ◽  
pp. 1854-1870 ◽  
Author(s):  
Amir Shabani ◽  
Gholam Reza Faramarzi ◽  
Reza Farzipoor Saen ◽  
Mohsen Khodakarami
Keyword(s):  
Data Envelopment Analysis ◽  
Design Methodology ◽  
Integrated Model ◽  
Data Envelopment ◽  
Mathematical Approach ◽  
Content Type ◽  
Discriminating Power ◽  
Simultaneous Evaluation ◽  
Efficiency And Effectiveness ◽  
Non Parametric

Purpose The purpose of this paper is to develop a data envelopment analysis (DEA) technique that simultaneously measures efficiency and effectiveness to provide a comprehensive appraisal of the productivity. Additionally, an algorithm is recommended to determine targets that are used for measuring effectiveness. Design/methodology/approach In this paper, for measuring productivity, a new methodology based on non-parametric mathematical DEA technique was presented. The proposed procedure is able to compute the efficiency input effectiveness, and output effectiveness, simultaneously. Findings By comparing with previous models, the authors’ proposed integrated model generates more detailed results and has more discriminating power. Originality/value To the best of the authors knowledge, there is not any study in which a non-parametric mathematical approach measures productivity through simultaneous combining of the effectiveness, including input effectiveness, and output effectiveness, and the efficiency.

scholarly journals Comparing the productivity of major shipyards in China, South Korea, and Japan – an application of a metafrontier framework

2020 ◽  
Vol 5 (2) ◽  
pp. 193-210
Author(s):  
Shih-Liang Chao ◽  
Yi-Hung Yeh
Keyword(s):  
Data Envelopment Analysis ◽  
South Korea ◽  
Design Methodology ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Data Envelopment ◽  
Shipbuilding Industry ◽  
Content Type ◽  
Substantial Progress

Purpose This study aims to measure the productivity of 21 major shipyards in China, South Korea and Japan. Design/methodology/approach Data envelopment analysis was applied to measure the productivity of shipyards. The contemporaneous and intertemporal productivity scores of each shipyard were measured. Additionally, the technical gaps among shipyards in China, South Korea and Japan were measured and compared. Findings The results indicate that Japan led the global shipbuilding industry in 2014 and South Korea dominated in 2015. Additionally, from 2014 to 2015, shipyards in South Korea and Japan maintained their levels of productivity. Comparatively, major shipyards in China made substantial progress from 2014 to 2015, revealing their strong ambition to improve productivity. Originality/value This study first used a metafrontier framework to measure the technical gap of shipyards among major shipbuilding countries. The model and approach objectively analyze the productivity of major shipyards and considers their nationalities. Additionally, this study is the first to measure changes in the productivity of shipyards. By decomposing the metafrontier Malmquist productivity index, major shipyards were categorized into eight sets. The results of this study can provide a clear direction for shipyards to improve their productivity.

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