scholarly journals The Efficiency of the Banking System in Occupied Palestinian Territory (OPT) 2000–2009

2015 ◽  
Vol 11 (1) ◽  
Author(s):  
Shaker Sarsour ◽  
Yousef Daoud
Keyword(s):  
Technical Efficiency ◽  
Cost Efficiency ◽  
Stochastic Frontier ◽  
Allocative Efficiency ◽  
Banking System ◽  
Stochastic Frontier Approach ◽  
Occupied Palestinian Territory ◽  
Bank Ownership ◽  
The Cost ◽  
Palestinian Territory

AbstractThis study estimates the cost (technical) efficiency of the banking system in Occupied Palestinian Territory (OPT), using a panel of 18 banks during the period 2000–2009. Estimates have been obtained using the stochastic frontier approach. The analyses were extended to cover bank ownership (foreign and local), type (Islamic and commercial) and bank size. Results indicate that the overall cost (technical) efficiency of banks in the OPT is declining during the period of research. The mean of cost and technical efficiency was found to deteriorate through the years. Cost efficiency declined from 0.730 in 2000 to 0.666 in 2009, while technical efficiency declined from 0.733 to 0.713 during the same period. Moreover, the lower allocative efficiency (incorrect input mix rather than utilization or wasting resources) is the main cause of the decline in cost efficiency over the period of analysis. In addition, large banks have lower cost efficiency, which indicates the presence of diseconomies of scale for banks in OPT.

Measuring efficiency of Vietnamese banks

2017 ◽  
Vol 29 (2) ◽  
pp. 171-182 ◽  
Author(s):  
Thanh Ngo ◽  
David Tripe
Keyword(s):  
Cost Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Control Variable ◽  
Banking System ◽  
Alternative Methods ◽  
Content Type ◽  
Frontier Analysis ◽  
Using Data ◽  
The Cost

Purpose This paper aims to examine alternative methods for treating nonperforming loans (NPLs) in bank cost-efficiency studies using stochastic frontier analysis (SFA). Design/methodology/approach The authors consider three methods of treating NPLs in SFA: as an additional control variable, as an environmental factor or as a deduction from total loans. Using data from the Vietnamese banking system (2003-2010), the authors then compare these results with those of the base model (where total loans is used regardless of the NPLs) to see which one is more appropriate for this study. Findings The authors observed that the first two methods are inappropriate for the analysis: one cannot find the significant relationship between NPLs and the banks’ total cost, and the other cannot account for any inefficiency at all. The authors suggested that the third method of separating NPLs from total loans can provide better insights. Using the proposed method, the authors showed that the cost-efficiency of Vietnamese banks over the period examined was moderate with a slight decreasing trend. When NPLs are separated, the cost-efficiency decreases in state-owned banks and big banks, whereas it increases in small and private banks. Research limitations/implications Research is limited to Vietnamese banks during a certain period, and it would be useful to apply the same technique to other data sets. Practical implications The paper suggests a new approach to account for NPLs in cost SFA studies in banking. Originality/value The paper provides a much more searching analysis of NPLs in banking than has generally been seen in previous research.

Measuring the Cost Efficiency of International Tourist Hotels in Taiwan

2006 ◽  
Vol 12 (1) ◽  
pp. 65-85 ◽  
Author(s):  
Fei-Ching Wang ◽  
Wei-Ting Hung ◽  
Jui-Kou Shang
Keyword(s):  
Technical Efficiency ◽  
Cost Efficiency ◽  
Allocative Efficiency ◽  
Cost Savings ◽  
Scale Efficiency ◽  
Tobit Regression ◽  
Efficiency Measures ◽  
International Tourist ◽  
Dea Efficiency ◽  
The Cost

This study employs data envelopment analysis (DEA) to evaluate the relative cost efficiency of 49 international tourist hotels in Taiwan. The study uses five different measures: overall efficiency (OE), allocative efficiency (AE), technical efficiency (TE), scale efficiency (SE) and pure technical efficiency (PTE). Applying efficiency measures derived from the DEA estimation, hotel efficiency determinants are evaluated using the Tobit regression model. A bootstrapping technique is applied to overcome the interdependency problem of the DEA efficiency scores adopted in the regression analysis. The empirical results demonstrate that the international tourist hotel industry in Taiwan is inefficient, with most efficiency losses attributable to technical inefficiencies, of which scale inefficiencies are the primary cause – the scale of operations of international tourist hotels in Taiwan being too small to enable the cost-savings associated with larger-scale operations. The Tobit regression results indicate that the proportion of foreign individual travellers (FIT), online transaction function (WEB) and franchising (HOTELTYPE) are related to a better performance of international tourist hotels in Taiwan. The number of years a hotel has been operating (AGE) is not significantly related to any of the efficiency measures.

scholarly journals Evaluating Bank Cost Efficiency Using Stochastic Frontier Analysis

2019 ◽  
Vol 11 (3(J)) ◽  
pp. 48-57
Author(s):  
Sanderson Abel ◽  
Alex Bara ◽  
Pierre Le Roux
Keyword(s):  
Interest Rates ◽  
Cost Efficiency ◽  
Commercial Banks ◽  
Banking Sector ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Banking System ◽  
Frontier Analysis ◽  
Doing Business ◽  
The Cost

The study seeks to assess the cost efficiency of the commercial banks in Zimbabwe using the stochastic frontier analysis. The cost efficiency of the Zimbabwean banks is estimated using the trans-log stochastic frontier approach. The Stochastic Frontier Analysis methodology is among the host of methods that has been used to measure banking sector efficiency. The analysis of cost efficiency of commercial banks has important implications for the economy since an efficient banking system has potential to reduce interest rates which can lead to increased investment and growth for the economy. The cost of doing business in Zimbabwe is perceived to be high hence improved bank efficiency has the potential to reduce the cost of doing business. The average cost efficiency scores for the Zimbabwean banks over the study period show that the banking sector in Zimbabwe experiencing 17 percent inefficiency. The efficiency levels have been declining over the years reflecting increased resource wastage in the system. The study recommends that the banking institutions should continue to innovate so as to reduce their inefficiencies.

EFISIENSI USAHA BUDIDAYA UDANG VANNAME

2017 ◽  
Vol 1 (1) ◽  
Author(s):  
Jusmiaty Jusmiaty ◽  
Muhammad Akib Tuwo ◽  
Bahari Bahari
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier ◽  
Allocative Efficiency ◽  
Shrimp Farming ◽  
Production Volume ◽  
Stochastic Frontier Approach ◽  
Urea Fertilizer ◽  
Production Factors ◽  
Volume Production ◽  
C Program

This study aimed to analyze the effects of production factors on production volume; determine and analyze the technical, economic, and allocative level of efficiency of vanname shrimp farming.  The study was conducted at Sani-Sani village in Samaturu sub regency, Kolaka regency, involving 46 purposively-selected samples of shrimp farmers. Analysis was performed using the Frontier version 41.c program by applying the stochastic frontier approach to production function and cost function. Results of the study were: volume of production were affected by: farming area, urea fertilizer, shrimp feedings, shrimp seedlings, and labors. Production cost was affected by price of: volume production, urea fertilizer, SP36 fertilizer, lime, shrimp seedlings, and labors. The average technical efficiency, allocative efficiency and economic efficiency shrimp farming vanname in the classification efficiency was low because the value below 90 percent efficiency ranged between 80.99 to 88.64 percent of the use of factors of production is not efficient , which means they need additional factor production. Keywords: vanname shrimp; allocative; economic; technical efficiency; stochastic frontier

scholarly journals Estimasi Efisiensi Bank-Bank Umum di Sumatra Barat Melalui Metode Stochastic Frontier Approach (SFA)

2009 ◽  
Vol 10 (1) ◽  
pp. 1-21
Author(s):  
Gaffari Ramadhan
Keyword(s):  
Cost Function ◽  
Cost Efficiency ◽  
Commercial Banks ◽  
Stochastic Frontier ◽  
Private Bank ◽  
Stochastic Frontier Approach ◽  
Banking Efficiency ◽  
Efficiency Estimation ◽  
The Government ◽  
The Cost

This study estimates the banking efficiency in the Province of West Sumatera for the years of 2007-2008. Using 19 samples of commercial banks, the estimation applies the Stochastic Frontier Approach (SFA) model in order to analyze the cost efficiency of commercial banks. This study finds that the bank's cost function is significantly affected by price of labors, price of funds, and loans. The results of the banking efficiency estimation show that in annually almost banks have more than 80 percent of the efficiency level. In the average estimation, it also shows the same result. By dividing banks into groups, the estimation shows that the government bank is more efficient than the national private bank.

scholarly journals Strategi Peningkatan Efisiensi Biaya pada Bank Umum Syariah Berbasis Stochastic Frontier Approach dan Data Envelopment Analysis

2015 ◽  
Vol 17 (4) ◽  
pp. 457-480 ◽  
Author(s):  
Rafika Rahmawati
Keyword(s):  
Data Envelopment Analysis ◽  
Cost Efficiency ◽  
Stochastic Frontier ◽  
Good Alternative ◽  
Data Envelopment ◽  
Islamic Banks ◽  
Stochastic Frontier Approach ◽  
The Board Of Directors ◽  
Asean Economic Community ◽  
The Cost

Entering the ASEAN Economic Community (AEC) in 2015, the Islamic banking in Indonesia is expected to have better performance to compete sustainably with local banks and foreign. The performance of the banks using the cost efficiency approach with a focus on two inputs (cost of fund and cost of labor) and the two outputs (total financing and owned securities). Using Stochastic Frontier Approach (SFA) and Data Envelopment Analysis (DEA) on Islamic Banks during the period of January 2010 to December 2013, the result shows that the level of efficiency of the Islamic banks in Indonesia is not optimal. Our calculation shows different result for both method (SFA and DEA), where the highest efficiency levels using SFA methodis Bank Mega Syariah, while with the DEA method is Bank Muamalat Indonesia. Leaving some option of strategies to improve their cost efficiency; this includes increasing their assets, increasing deposits, and cut cost the unnecessarily cost. More strategy includes product innovation, reducing the salary of the board of directors, and put the funds in profitable portfolio. For the authorities, this paper has demonstrated the use of frontier approach as good alternative in assessing the performance of the banks.

scholarly journals Agricultural Technical Efficiency of Smallholder Farmers in Ethiopia: A Stochastic Frontier Approach

Land ◽  
2021 ◽  
Vol 10 (3) ◽  
pp. 246
Author(s):  
Markose Chekol Zewdie ◽  
Michele Moretti ◽  
Daregot Berihun Tenessa ◽  
Zemen Ayalew Ayele ◽  
Jan Nyssen ◽  
...  
Keyword(s):  
Technical Efficiency ◽  
Crop Production ◽  
Large Scale ◽  
Positive Impact ◽  
Smallholder Farmers ◽  
Stochastic Frontier ◽  
Crop Productivity ◽  
Small Scale ◽  
Stochastic Frontier Approach ◽  
Small Scale Irrigation

In the past decade, to improve crop production and productivity, Ethiopia has embarked on an ambitious irrigation farming expansion program and has introduced new large- and small-scale irrigation initiatives. However, in Ethiopia, poverty remains a challenge, and crop productivity per unit area of land is very low. Literature on the technical efficiency (TE) of large-scale and small-scale irrigation user farmers as compared to the non-user farmers in Ethiopia is also limited. Investigating smallholder farmers’ TE level and its principal determinants is very important to increase crop production and productivity and to improve smallholder farmers’ livelihood and food security. Using 1026 household-level cross-section data, this study adopts a technology flexible stochastic frontier approach to examine agricultural TE of large-scale irrigation users, small-scale irrigation users and non-user farmers in Ethiopia. The results indicate that, due to poor extension services and old-style agronomic practices, the mean TE of farmers is very low (44.33%), implying that there is a wider room for increasing crop production in the study areas through increasing the TE of smallholder farmers without additional investment in novel agricultural technologies. Results also show that large-scale irrigation user farmers (21.05%) are less technically efficient than small-scale irrigation user farmers (60.29%). However, improving irrigation infrastructure shifts the frontier up and has a positive impact on smallholder farmers’ output.

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