Data envelopment analysis of technical efficiency and productivity growth in the US Pacific Northwest sawmill industry

2008 ◽  
Vol 38 (10) ◽  
pp. 2553-2565 ◽  
Author(s):  
Ted L. Helvoigt ◽  
Darius M. Adams
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Pacific Northwest ◽  
Productivity Growth ◽  
Returns To Scale ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Efficiency Change ◽  
Constant Returns To Scale ◽  
Sawmilling Industry

This paper uses data envelopment analysis (DEA) to characterize the changing production frontier (technical efficiency, productivity growth, technical and efficiency change, and returns to scale) of the sawmilling industry in the Pacific Northwest (PNW) US using geographical panel data for the period 1968–2002. Unlike past DEA studies, we develop confidence intervals for all estimates using an improved bootstrapping method. The results indicate that the gap between the least and most efficient regions in PNW has grown and the least efficient regions are falling further behind the most efficient regions. For the Oregon regions, the null hypothesis of constant returns to scale (CRS) could not be rejected for any year. For the Washington regions, returns to scale varied year by year, although only two of the five regions showed strong tendencies away from CRS. For PNW as a whole, mean productivity growth was 0.5% per year between 1968 and 1992. Between 1992 and 2002, the regional mean was 1.3%, although with wide variation across regions. DEA results indicate that the vast majority of productivity growth in the PNW sawmilling industry between 1968 and 2002 was due to technical change. Improvements in scale efficiency played a very small role, and efficiency change was zero or negative.

Efficiency in the Indian iron and steel industry – an application of data envelopment analysis

2014 ◽  
Vol 11 (1) ◽  
pp. 4-19 ◽  
Author(s):  
Roma Mitra Debnath ◽  
V.J. Sebastian
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Steel Industry ◽  
Returns To Scale ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Annual Income ◽  
Content Type ◽  
Steel Manufacturing ◽  
Constant Returns To Scale

Purpose – The purpose of this paper applies to Indian steel manufacturing industries to evaluate the technical and scale efficiency (SE). Design/methodology/approach – Data envelopment analysis (DEA) has been employed to calculate the relative efficiency of the steel manufacturing units. The selection criteria for the inclusion of a steel manufacturing unit in the analysis has been annual income of more than 50 crores and units manufacturing pig iron, steel and sponge iron. Within the DEA framework, the output-oriented model with constant returns to scale and variable returns to scale were studied. Four input variables, namely, gross fixed assets, total energy cost, total number of employees and currents assets were considered. Among the output variables, the four variables considered are income, sales, PBIT and PAT. Findings – The result of the efficiency scores have been categorized into three parts. The pure technical efficiency represents local efficiency and the reason of inefficiency is due to inefficient operations. Technical efficiency indicates that the respective decision-making units are globally efficient in case the efficiency is 100 per cent. The SE explains that the inefficiency is caused by disadvantageous conditions. As the result shows, that public sector undertaking (PSUs) are operating under disadvantageous conditions as compared to private manufacturing units. One of the possible reasons of location disadvantage condition is manufacturing units for PSUs are scattered throughout India. Some of the units are located in such places where, the raw material, supply chain could be difficult. It has been found that 45 per cent of the private manufacturing units are technically as well as scale inefficient units. Practical implications – The result of the study would benefit the steel industry to develop a performance benchmarking as steel companies must be profitable in the long term to ensure sustainable achievements. Originality/value – This is an original study to apply DEA to get insights on productivity efficiency of the steel manufacturing units in India. Though the manufacturing units were selected on the basis of annual income, the analysis of productivity does not reflect any impact of income on the efficiency of the manufacturing firms.

scholarly journals Does Farm Size and Specialization Matter for Productive Efficiency? Results from Kansas

2011 ◽  
Vol 43 (4) ◽  
pp. 515-528 ◽  
Author(s):  
Amin W. Mugera ◽  
Michael R. Langemeier
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Production Technology ◽  
Returns To Scale ◽  
Productive Efficiency ◽  
Farm Size ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Sample Period ◽  
Analysis Techniques

In this article, we used bootstrap data envelopment analysis techniques to examine technical and scale efficiency scores for a balanced panel of 564 farms in Kansas for the period 1993–2007. The production technology is estimated under three different assumptions of returns to scale and the results are compared. Technical and scale efficiency is disaggregated by farm size and specialization. Our results suggest that farms are both scale and technically inefficient. On average, technical efficiency has deteriorated over the sample period. Technical efficiency varies directly by farm size and the differences are significant. Differences across farm specializations are not significant.

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 Application of Window Malmquist Index for Examination of Efficiency Change of Czech Commercial Banks

2017 ◽  
Vol 8 (3) ◽  
pp. 173-190
Author(s):  
Iveta Palecková
Keyword(s):  
Commercial Banks ◽  
Returns To Scale ◽  
Malmquist Index ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Efficiency Change ◽  
Average Efficiency ◽  
Index Approach ◽  
Constant Returns To Scale ◽  
Variable Returns To Scale

Abstract The aim of the paper is to apply the Window Malmquist index approach to examine the efficiency change of Czech commercial banks within the period 2004-2013. We used the Data Envelopment Analysis and theWindow Malmquist index approaches to estimate the efficiency change of Czech commercial banks. The average efficiency computed under the assumption of constant returns to scale was 73% and under the assumption of variable returns to scale the value was 83%. We estimated the average positive efficiency growth of Czech commercial banks during the period 2004-2013. We found that average scale efficiency was 88%, which means that Czech commercial banks were of an inappropriate size, especially the largest banks.

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 Technical Efficiency Of Social Foundations In A Multidimensional Context

2010 ◽  
Vol 9 (11) ◽  
Author(s):  
Imelda S. Dorado ◽  
Emilyn Cabanda
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Returns To Scale ◽  
The Philippines ◽  
Data Envelopment ◽  
Non Profit ◽  
Dea Model ◽  
Social Foundations ◽  
Efficiency Assessment ◽  
Constant Returns To Scale

The paper is the first attempt at examining the technical efficiency and benchmarking the performance of 15 social foundations in the Philippines for the period 2000-2005 using the data envelopment analysis (DEA) model. The 65.55% of social foundations are operating at increased returns to scale, 4.45% at decreased returns to scale and 30% at constant returns to scale. Forty percent of firms are efficiently utilizing their expenses and the majority shows resource excesses (capital and labor). All firms show output deterioration for donations and total awards to beneficiaries. With the aid of the DEA tool, measurement of the efficiency of social foundations has been verified and proven as manageable and quantifiable from a multidimensional assessment. Results reveal the importance of technical efficiency assessment for the non-profit sector.

scholarly journals Applying DEA in Analysing the Efficiency of Top Manufacturing Companies in Pakistan

2011 ◽  
Vol 1 (2) ◽  
pp. 225
Author(s):  
Izah Mohd Tahir ◽  
Mehran Ali Memon
Keyword(s):  
Technical Efficiency ◽  
Returns To Scale ◽  
International Markets ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Manufacturing Companies ◽  
Critical Elements ◽  
Input Variables ◽  
Constant Returns To Scale ◽  
Variable Returns To Scale

The efficiency of manufacturing companies is one of the critical elements for its competitiveness in the domestic as well as international markets. Previous research on efficiency measurement usually adopts Data Envelopment Analysis (DEA) approach. Therefore this paper is aimed to analyse the efficiency of 14 top manufacturing companies in Pakistan for a five year period from 2006 to 2010. Data of top 14 manufacturing companies are gathered from OSIRIS database. DEA method is applied using both the Constant Returns to Scale (CCR) and Variable Returns to Scale (BCC) models to find the overall efficiency, technical efficiency and scale efficiency. In this paper we use two input variables (total expenses and total assets) and two output variables (sales and profit before tax). The results under CCR method show that only one company is considered technically efficient while the average overall technical efficiency varies from 0.64 to 0.99. Company number 5 (NRL) demonstrates the best performance for all years under study.

scholarly journals Access to Credit and Farm Efficiency in Cameroon: A Data Envelopment Analysis Approach

2021 ◽  
pp. 48-62
Author(s):  
Orelien Tresor Feumba Tchamba
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Returns To Scale ◽  
Farm Households ◽  
Farm Size ◽  
Data Envelopment ◽  
Agricultural Field ◽  
Access To Credit ◽  
Farm Efficiency ◽  
Constant Returns To Scale

The aims of this paper is to analyze the effect of access to credit on the technical efficiency of farms in Cameroon’s rural area. Using a sample of 545 farm households, we first estimate a Data Envelopment Analysis (DEA) model with constant returns to scale; then a censored TOBIT model enabling us to identify factors of efficiency, especially the effect of access to credit on efficiency. Two main results emerge from our analysis. First, we find that on average, the level of technical efficiency of farms is 56.78%; showing therefore the possibility of substantial efficiency gains. Second, farm size, association membership, and fertilizer expenditure negatively affect technical efficiency, while access to credit, age and education increase it. Based on these results, we believe that it’s interesting for farm householders to organize themselves in associations to benefit from available credits and financial facilities and to share their experiences in the agricultural field in order to improve their efficiency.

Efficiency of Gulf Cooperation Council Banks

2016 ◽  
Vol 26 (1) ◽  
pp. 118-136 ◽  
Author(s):  
Peter A Aghimien ◽  
Fakarudin Kamarudin ◽  
Mohamad Hamid ◽  
Bany Noordin
Keyword(s):  
Technical Efficiency ◽  
Parametric Method ◽  
Returns To Scale ◽  
Gulf Cooperation Council ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Content Type ◽  
Use Of Resources ◽  
Potential Factors ◽  
Constant Returns To Scale

Purpose – This paper aims to investigate the efficiency level of Gulf Cooperation Council (GCC) banks on technical efficiency (TE), pure technical efficiency (PTE) and scale efficiency (SE). Both PTE and SE represent the potential factors that influence the efficiency of the GCC banks. In total, 43 GCC banks were observed in this study over the period from 2007 until 2011. Design/methodology/approach – The Data Envelopment Analysis, a non-parametric method using variable returns to scale under Banker, Charnes and Cooper model, was used with assets and deposit (as input) and loan and income (as output). Findings – On average, the results show that many GCC banks are operating within an optimal scale of efficiency. Nevertheless, the results also show managerial inefficiency in the use of resources. Furthermore, the results indicate that, while the larger banks (the 22 largest) tend to operate at constant returns to scale (CRS) or decreasing returns to scale, the smaller banks (the 21 smallest) are susceptible to operate at either CRS or increasing returns to scale. Research limitations/implications – Because of the chosen research method, the results may lack generalisation. Therefore, researchers are encouraged to test the propositions further. An additional implication of the results is that it was able to identify some banks that may become potential targets for outside acquisition. Practical implications – The findings should be useful to banks in the GCC in increasing their efficiencies and recognizing those with a potential for outside acquisition. Originality/value – The findings are valuable because they will facilitate the maintenance of efficient banks in the GCC. This is necessary to enable the countries to maintain a healthy and sustainable economy.

scholarly journals The Evolution of Efficiency in Costa Rican Banking System 2005-2015: Evidence from Data Envelopment Analysis

2016 ◽  
Vol 34 (2) ◽  
pp. 47-58
Author(s):  
Andrés Salas-Alvarado
Keyword(s):  
Data Envelopment Analysis ◽  
Returns To Scale ◽  
Banking System ◽  
Costa Rican ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Net Use ◽  
Private Banks ◽  
Constant Returns To Scale ◽  
Variable Returns To Scale

In this study the technical and scale efficiency of Costa Rican banking system is estimated for the 2005-2015 period, through the Data Envelopment Analysis (DEA). The estimations are within the approach of variable returns to scale with slacks developed by Banker, Charnes, and Cooper (1984) and the constant returns to scale approach developed by Charnes, Cooper, and Rhodes (1978). Efficiency scores were estimated annually for each bank to get the average for state banks, private banks, and the whole system. The inputs and outputs considered in the DEA model were defined through the intermediation approach. Through the application of DEA was concluded that a) for the whole system there are no clear efficiency improvements during the period analyzed, b) the most efficient banks were Banco BCT and Banco General, c) private banks were on average more efficient than state banks and d) the goods of net use were, on average, the input with bigger slack.

Sign in / Sign up

Export Citation Format

Share Document