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.

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 Influence of Constant Returns to Scale and Variable Returns to Scale Data Envelopment Analysis Models in ICT Infrastructure Efficiency Utilization

2021 ◽  
pp. 158-181
Author(s):  
Yinka Oyerinde ◽  
Felix Bankole
Keyword(s):  
Data Envelopment Analysis ◽  
Human Development ◽  
Relative Efficiency ◽  
Returns To Scale ◽  
Data Envelopment ◽  
Information And Communication ◽  
Ict Infrastructure ◽  
Policy Direction ◽  
Constant Returns To Scale ◽  
Variable Returns To Scale

A lot of research has been done using Data Envelopment Analysis (DEA) to measure efficiency in Education. DEA has also been used in the field of Information and Communication Technology for Development (ICT4D) to investigate and measure the efficiency of Information and Communication Technology (ICT) investments on Human Development. Education is one of the major components of the Human Development Index (HDI) which affects the core of Human Development. This research investigates the relative efficiency of ICT Infrastructure Utilization on the educational component of the HDI in order to determine the viability of Learning Analytics using DEA for policy direction and decision making. A conceptual model taking the form of a Linear Equation was used and the Constant Returns to Scale (CRS) and Variable Returns to Scale (VRS) models of the Data Envelopment Analysis were employed to measure the relative efficiency of the components of ICT Infrastructure (Inputs) and the components of Education (Outputs). Results show a generally high relative efficiency of ICT Infrastructure utilization on Educational Attainment and Adult Literacy rates, a strong correlation between this Infrastructure and Literacy rates as well, provide an empirical support for the argument of increasing ICT infrastructure to provide an increase in Human Development, especially within the educational context. The research concludes that DEA as a methodology can be used for macroeconomic decision making and policy direction within developmental research.

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.

Measuring the financial efficiencies and performances of Turkish funds

2010 ◽  
Vol 60 (3) ◽  
pp. 295-320 ◽  
Author(s):  
F. Gökgöz
Keyword(s):  
Mutual Funds ◽  
Returns To Scale ◽  
Scale Efficiency ◽  
Portfolio Performance ◽  
Data Envelopment ◽  
Performance Indices ◽  
Programming Technique ◽  
Dea Models ◽  
Constant Returns To Scale ◽  
Variable Returns To Scale

Measuring the financial efficiencies of mutual funds in emerging markets has played an important role in finance literature. Charnes et al. (1978) advocated Data Envelopment Analysis (DEA), a valuable mathematical programming technique, which is used to measure the technical, pure and scale efficiencies of decision making units. The general form of DEA is the CCR model that depends on the assumption of constant returns to scale. Subsequently, Banker et al. (1984) developed an alternative DEA model which includes a variable returns to scale approach. The aim of this study is to measure and compare the financial efficiencies of Turkish securities and pension funds in the 2006–2007 period. In this respect, 36 securities mutual funds (SMFs) and 41 pension mutual funds (PMFs) have been evaluated comparatively according to classical portfolio performance measures and DEA models. Results from performance indices and DEA models reveal that PMFs have higher portfolio performances and financial efficiencies than SMFs in the 2006–2007 period. However, SMFs and PMFs have shown considerable increases in efficiency in the 2006–2007 period according to CCR and BCC models. Of the 77 funds studied, 23 funds in 2007 and 20 funds in 2006 demonstrated scale efficiency. Furthermore, the input ratios should be considerably improved for 2006 and 2007. But, mostly the output values of the funds were found to have remained unchanged in the case of PMFs and SMFs in 2007. The output ratios for 2006 should be considerably improved, especially in the case of SMFs. Finally, the DEA method is evaluated as a substantial quantitative tool for investors in analysing the financial efficiencies of funds in the capital markets.

scholarly journals Assessing Efficiency in the Pharmaceutical Sector of Nigeria

2019 ◽  
pp. 131-147
Author(s):  
Efayena, O. Obukohwo ◽  
Enoh H. Olele ◽  
Patricia N. Buzugbe
Keyword(s):  
Data Envelopment Analysis ◽  
Research And Development ◽  
Returns To Scale ◽  
Data Envelopment ◽  
Policy Mix ◽  
Pharmaceutical Sector ◽  
Pharmaceutical Firms ◽  
Constant Returns To Scale ◽  
Variable Returns To Scale ◽  
Non Parametric

The study analyses, empirically, the efficiency of the Pharmaceutical sector in Nigeria. Employing a balanced panel of 20 pharmaceutical firms between 2012 and 2016, the paper uses a non-parametric technique (Data Envelopment Analysis) to analyze the firms' efficiency under the constant returns to scale (CRS) and variable returns to scale (VRS) assumptions. The results obtained shows inefficiency in the pharmaceutical sector as it operates under a decreasing return to scale. This calls for an appropriate policy mix to stimulate the efficiency of the pharmaceutical sector in Nigeria by enhancing research and development (R&D) as well as regulations within the 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 DATA ENVELOPMENT ANALYSIS (DEA) APPROACH FOR ASSESSING TECHNICAL, ECONOMIC AND SCALE EFFICIENCY OF BROILER FARMS

2021 ◽  
Vol 52 (2) ◽  
pp. 291-300
Author(s):  
Fardos A.M. Hassan
Keyword(s):  
Returns To Scale ◽  
Sampling Technique ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Tobit Regression ◽  
Policy Makers ◽  
Education Experience ◽  
Level Of Training ◽  
Constant Returns To Scale ◽  
Variable Returns To Scale

This study was surveyed and evaluated technical, economic and scale efficiency of broiler farms in Egypt using DEA technique. So as to accomplish the specified aim, stratified random sampling technique was utilized to gather information from 150 broiler farms. The results showed that mean technical efficiencies of broiler farms were 0.915 and 0.985 under constant returns to scale (CRS) and variable returns to scale (VRS) respectively, implying that on average the farms could reduce input utilization by 8.5% and 1.5% for production level of output to be technically efficient. Notably, 48.7% of the farms were estimated fully technical efficient under VRS-model. The mean allocative and economic efficiency of the farms were assessed as 0.941 and 0.918 respectively, with only 2% of the farms were fully allocative and economic efficient. Furthermore, the average scale efficiency was 0.929 with the majority of broiler farms (82%) were operating with increasing returns to scale. The estimated Tobit regression showed that farmer's age, education, experience, access to extension services, and level of training were the most significant variables contributing to the disparities in efficiency of broiler farms. Such results are useful for extension workers and policy makers so as to guide policies towards expanding efficiency. 

scholarly journals Efficiency Analysis of East Asian Zinc Smelters and the Effects of Capacity and Bonus Zinc on Efficiency

2019 ◽  
Vol 5 (1) ◽  
pp. 4 ◽  
Author(s):  
Ha Park ◽  
Daecheol Kim
Keyword(s):  
Returns To Scale ◽  
Labor Cost ◽  
Efficiency Analysis ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Tobit Regression ◽  
Iron Aluminum ◽  
Tobit Regression Analysis ◽  
Constant Returns To Scale ◽  
Variable Returns To Scale

Non-ferrous metals are widely used as basic materials in various industrial fields, and zinc is a metal that is produced and used next to iron, aluminum, and copper. In this study, DEA (data envelopment analysis) was applied to measure the efficiency of 43 zinc smelters in three countries in East Asia: Korea, China, and Japan. The constant returns to scale (CRS) and the variable returns to scale (VRS) models, and the slack-based measure (SBM) were used for the analysis. As a result of the efficiency analysis, there were three efficient zinc smelters in the CRS model, 14 in the VRS model and 14 in the SBM. The average efficiency was 0.458 based on the SBM, which indicates that there is room for improvement in efficiency. In addition, the average scale efficiency value was 0.689, showing the scale to be inefficient. Therefore, it can be seen that the labor cost and the energy cost must be brought to an appropriate level. The Tobit regression analysis was used to analyze the causes of efficiency. The greater the capacity and the larger amount of bonus Zn of the refinery, the higher the efficiency of the refinery.

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.

scholarly journals Efficiency Measurement on Banking Sector in Bangladesh

2013 ◽  
Vol 61 (1) ◽  
pp. 1-5 ◽  
Author(s):  
Md. Rashedul Hoque ◽  
Md. Israt Rayhan
Keyword(s):  
Data Envelopment Analysis ◽  
Banking Sector ◽  
Measurement Techniques ◽  
Returns To Scale ◽  
Efficiency Score ◽  
Annual Reports ◽  
Data Envelopment ◽  
Operating Profit ◽  
Constant Returns To Scale ◽  
Variable Returns To Scale

Nowadays banking sector in Bangladesh plays a considerable role in the economic development and business improvement, in this aspect ranking of banks is vital. In this study, an attempt has been made to rank some of the Bangladeshi Banks. Also, the most efficient bank is identified here. Data Envelopment Analysis is used for this purpose. The data from the annual reports of different banks are used in this study for the purpose of efficiency checking. In Data Envelopment Analysis two types measurement techniques are used – constant returns to scale and variable returns to scale. Since this study attempts to maximize output, that is, the operating profit, so the output oriented Data Envelopment Analysis is used here. The most efficient bank is identified here by the highest efficiency score obtained by that specific bank. Dhaka Univ. J. Sci. 61(1): 1-5, 2013 (January) DOI: http://dx.doi.org/10.3329/dujs.v61i1.15088

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