Cost Structure and Efficiency of the Credit Departments of the Farmers' Associations in Taiwan

2006 ◽  
Vol 09 (03) ◽  
pp. 385-403 ◽  
Author(s):  
Cheng-Few Lee ◽  
Kehluh Wang ◽  
Ya-Hui Peng
Keyword(s):  
Economies Of Scale ◽  
Negative Impact ◽  
Operational Efficiency ◽  
Cost Structure ◽  
Economies Of Scope ◽  
Data Envelopment ◽  
Frontier Analysis ◽  
Cost Frontier ◽  
Loan Quality ◽  
The Cost

This study addresses the cost structure and operational efficiency of the credit departments of the farmers' associations in Taiwan, adopting both stochastic cost frontier analysis and data envelopment analysis. The factors that influence operational efficiency are also examined. In particular, problems of loan quality are considered to account for the considerable amount of non-performing loans. The results of this study indicate that economies of scale exist. However, the credit departments of the farmers' associations do not benefit from economies of scope. Non-performing loans are associated with a cost increase of approximately 17.6%. Regression analysis verifies that the non-performing loan ratio significantly and negatively influences all indicators of efficiency and that the 1997 Asian financial crisis also has a negative impact on efficiencies.

scholarly journals Market Structure And Banking Production Economies: Evidence From The 1980s Deregulation

2011 ◽  
Vol 8 (3) ◽  
pp. 46
Author(s):  
Rasoul Rezvanian ◽  
Nanda Rangan ◽  
Richard Grabowski
Keyword(s):  
Average Cost ◽  
Economies Of Scale ◽  
Cost Structure ◽  
Economies Of Scope ◽  
Translog Cost Function ◽  
Production Economies ◽  
Cost Curves ◽  
Using Data ◽  
The Cost ◽  
Over Time

This study examines the changes in the cost structure of banking firms using data from pre and post deregulation periods. A translog cost function is utilized for the analyses of economies of scale and scope. The results indicate that the average cost curves, although U-shaped flattened over time, resulting in an increase in optimal bank size. Economies of scope that existed prior to deregulation appears to be exhausted in a more nonconstrained environment.

scholarly journals Operational Efficiency of Chinese Provincial Electricity Grid Enterprises: An Evaluation Employing a Three-Stage Data Envelopment Analysis (DEA) Model

2018 ◽  
Vol 10 (9) ◽  
pp. 3168 ◽  
Author(s):  
Haoran Zhao ◽  
Huiru Zhao ◽  
Sen Guo
Keyword(s):  
Data Envelopment Analysis ◽  
Environmental Variables ◽  
Market Competition ◽  
Environmental Values ◽  
Operational Efficiency ◽  
Data Envelopment ◽  
Electricity Grid ◽  
Frontier Analysis ◽  
Dea Model ◽  
Statistical Noise

With the implementation of new round electricity system reform in China, the provincial electricity grid enterprises (EGEs) of China should focus on improving their operational efficiency to adapt to the increasingly fierce market competition and satisfy the requirements of the electricity industry reform. Therefore, it is essential to conduct operational efficiency evaluation on provincial EGEs. While considering the influences of exterior environmental variables on the operational efficiency of provincial EGEs, a three-stage data envelopment analysis (DEA) methodology is first utilized to accurately assess the real operational efficiency of provincial EGEs excluding the exterior environmental values and statistical noise. The three-stage DEA model takes the amount of employees, the fixed assets investment, the 110 kV and below distribution line length, and the 110 kV and below transformer capacity as input variables and the electricity sales amount, the amount of consumers, and the line loss rate as output variables. The regression results of the stochastic frontier analysis model indicate that the operational efficiencies of provincial EGEs are significantly affected by exterior environmental variables. Results of the three-stage DEA model imply that the exterior environmental values and statistical noise result in the overestimation of operational efficiency of provincial EGEs, and the exclusion of exterior environmental values and statistical noise has provincial-EGE-specific influences. Furthermore, 26 provincial EGEs are divided into four categories to better understand the differences of operational efficiencies before and after the exclusion of exterior environmental values and statistical noise.

scholarly journals The Cost Efficiency of the Brazilian Electricity Distribution Utilities: A Comparison of Bayesian SFA and DEA Models

2010 ◽  
Vol 2010 ◽  
pp. 1-20 ◽  
Author(s):  
Marcus Vinicius Pereira de Souza ◽  
Madiagne Diallo ◽  
Reinaldo Castro Souza ◽  
Tara Keshar Nanda Baidya
Keyword(s):  
Cost Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Fundamental Aspect ◽  
Data Envelopment ◽  
Electricity Distribution ◽  
Frontier Analysis ◽  
Dea Models ◽  
The Cost ◽  
Analysis Models

The purpose of this study is to evaluate the efficiency indices for 60 Brazilian electricity distribution utilities. These scores are obtained by DEA (Data Envelopment Analysis) and Bayesian Stochastic Frontier Analysis models, two techniques that can reduce the information asymmetry and improve the regulator's skill to compare the performance of the utilities, a fundamental aspect in incentive regulation schemes. In addition, this paper also addresses the problem of identifying outliers and influential observations in deterministic nonparametric DEA models.

Performance of Portuguese water utilities: how do ownership, size, diversification and vertical integration relate to efficiency?

Water Policy ◽  
2010 ◽  
Vol 13 (3) ◽  
pp. 343-361 ◽  
Author(s):  
Tânia Correia ◽  
Rui Cunha Marques
Keyword(s):  
Vertical Integration ◽  
Economies Of Scale ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Water Utilities ◽  
Economies Of Scope ◽  
Translog Cost Function ◽  
Water Sector ◽  
Frontier Analysis ◽  
Portuguese Water

This research applies the stochastic frontier analysis benchmarking method to measure the performance of the water sector in Portugal. It estimates a multiproduct translog cost function in order to study the efficiency of the water and sewerage services, using an unbalanced panel comprising 68 Portuguese water utilities for the biennium 2004–2005. The sample is formed by concessionaire companies, municipal companies and semi-autonomous utilities which represent approximately 61% of the Portuguese population, around 6.4 million inhabitants. The water utilities studied have a satisfactory level of efficiency (89% on average). The study points to the assumption that private utilities are, on average, more efficient than public utilities and that there are benefits if the companies specialize in providing a single activity. It also leads to the conclusion that there are increasing economies of scale and decreasing economies of scope associated with the Portuguese water sector.

Analysis of cost-effectiveness in the provision of air navigation services at functional air blocks

2019 ◽  
Vol 20 (4) ◽  
pp. 305-318
Author(s):  
Alberto Ansuategi ◽  
Ibon Galarraga ◽  
Luis Orea ◽  
Thomas Standfuss
Keyword(s):  
Cost Effectiveness ◽  
Traffic Management ◽  
Economies Of Scale ◽  
Stochastic Frontier Analysis ◽  
Service Providers ◽  
Stochastic Frontier ◽  
Fundamental Aspect ◽  
Frontier Analysis ◽  
Navigation Service ◽  
The Cost

The Single European Sky (SES) legislation is intended to have a major impact on the fragmentation in the European Air Traffic Management and Communications, Navigation and Surveillance (ATM/CNS) system. A fundamental aspect of the SES initiative is functional airspace blocks (FABs), which have the goal of reducing the inefficiencies—in terms of safety, capacity, and cost—that result from the fragmentation of European airspace. FABs are seen as an explicit bottom-up first step toward the ultimate integration of European airspace. In this article, we focus on the analysis of the evolution of the cost-effectiveness in the provision of ATM/CNS services at FABs. We proceed in two stages. First, we develop a theoretical framework that allows us to decompose the change in cost-effectiveness of FABs into its basic sources. Second, we use stochastic frontier analysis techniques to estimate the cost equations and decompose the change in the cost-effectiveness of the nine European FABs into several components. Our analysis sheds light on (1) the drivers of changes in the air navigation service providers (ANSPs) and FABs cost-effectiveness from 2006 to 2016, (2) the role that FABs play in enhancing cooperation between ANSPs to obtain operational efficiency gains, and (3) the existence of economies of scale in the European ATM/CNS service provision.

scholarly journals Cost Efficiency of Banks in Croatia

2015 ◽  
Vol 1 (1-2) ◽  
pp. 12-26
Author(s):  
Ivan Huljak
Keyword(s):  
Cost Efficiency ◽  
Economies Of Scale ◽  
Financial Statements ◽  
Consolidation Process ◽  
Banking Efficiency ◽  
Frontier Analysis ◽  
Administrative Costs ◽  
Cost Efficiencies ◽  
Cost Efficient ◽  
The Cost

Abstract Foreign and larger banks in Croatia are generally considered to be more cost efficient compared with domestic and smaller banks. However, those views are often based on data from financial statements that can be misleading due to simultaneous consolidation process on the market and the existence of economies of scale. To contribute to the Croatian banking efficiency literature, we construct a panel of individual bank data for 1994-2014 period and conduct a frontier analysis to calculate bank specific X-efficiency. Our results suggest that efficiency scores depend on the cost definition as domestic and smaller banks are more efficient in managing administrative costs compared with foreign and larger banks but equally efficient in managing total costs. Results indicate that average bank relative efficiency increased on two occasions: one in the late 90s in the period of banking crisis and subsequent “market cleansing” and to a lesser extent in the period marked with financial crisis. Although the differences between bank cost efficiencies seem small, we conclude that the area is worth further research as significant gains in bank earnings could be achieved by increasing efficiency.

scholarly journals Economies of Scale in the Floriculture Industry

2003 ◽  
Vol 35 (3) ◽  
pp. 497-507 ◽  
Author(s):  
Sara K. Schumacher ◽  
Thomas L. Marsh
Keyword(s):  
United States ◽  
Cost Function ◽  
Economies Of Scale ◽  
The United States ◽  
Cost Structure ◽  
Cost Advantage ◽  
Quadratic Cost ◽  
Cost Efficiencies ◽  
The Cost ◽  
Quadratic Cost Function

This study investigated the cost structure of the floriculture industry in the United States. Economies of scale and input elasticities were estimated with a normalized quadratic cost function. Results suggest that economies of scale exist in the floriculture industry. As producers become large and more automated, they have a cost advantage relative to smaller producers who are producing the same output product mix. The existence of economies of scale suggests that average grower size can increase in the future as growers increase in size to take advantage of cost efficiencies.

scholarly journals An Empirical Research Survey of the Productivity and Efficiency of the Securities Industry

2021 ◽  
Vol 8 (2) ◽  
pp. 42
Author(s):  
My Tran ◽  
Malcolm Abbott
Keyword(s):  
Economies Of Scale ◽  
Economies Of Scope ◽  
Data Envelopment ◽  
Organisational Structure ◽  
Stochastic Frontiers ◽  
Structure Characteristics ◽  
Research Survey ◽  
Bank Ownership ◽  
Securities Industry ◽  
The Impact

This paper provides a review of the approaches that have been used to evaluate the productivity and efficiency of the securities industry (financial ratios, econometric techniques, data envelopment analysis-DEA, and the estimation of stochastic frontiers). In undertaking this it identifies some of the organisational structure characteristics of securities companies that are associated with high levels of operational efficiency, particularly regarding the impact of regulation, the structure of ownership, and economies of scope and scale. The findings are that from the limited number of studies that have to date been undertaken it appears that the industry does have economies of scale, benefits from deregulation and performs better with foreign and bank ownership.

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