scholarly journals RICE-FISH FARMING SYSTEM IN LAMONGAN, EAST JAVA, INDONESIA: SWOT AND PROFIT EFFICIENCY ANALYSIS

2020 ◽  
Vol 20 (4) ◽  
pp. 311-318
Author(s):  
Dyah Nurhidayati ◽  
Wen-Chi Huang ◽  
Nuhfil Hanani ◽  
S Sujarwo
Keyword(s):  
Stochastic Frontier Analysis ◽  
Agricultural Sector ◽  
Organic Fertilizer ◽  
Fish Farming ◽  
Farming System ◽  
Efficiency Analysis ◽  
Profit Efficiency ◽  
Frontier Analysis ◽  
Rice Fish ◽  
The Cost

The agricultural sector needs to make breakthroughs in the design of production systems to improve farmers' income and operation efficiency. One of the ways is to redesign rice production methods by applying a rice-fish farming system. Lamongan has a different system that combines rice cultivation with vannamei shrimp. Due to the limitation of farmers, the efficiency of the system has not yet reached the optimal level. This study describes the rice-fish farming system, identifies the SWOT and generated the grand strategy matrix, and analyzed the profit efficiency using Stochastic Frontier Analysis. The results showed that the strengths and opportunities are more influential, where the position was in the quadrant I; which means it is in a good strategic position. Meanwhile, the input factors which significantly influence profit where the cost of paddy seed, the cost of organic fertilizer, the cost of inorganic fertilizer, the cost of pesticide, and the cost of shrimp feed. The profit efficiency analysis shows that respondents engaged in this system did not efficiently allocate inputs and production cost factors appropriately. The average profit efficiency level was 78.05 percent; it means that there were still opportunities to increase profits from the system by 21.5 percent.

scholarly journals Management Practices And Technical Efficiency of MASIPAG Rice Farmers in Isabela, Philippines

2019 ◽  
Vol 1 (2) ◽  
Author(s):  
Jerald Medina Velasco
Keyword(s):  
Technical Efficiency ◽  
Management Practices ◽  
Stochastic Frontier Analysis ◽  
Organic Fertilizer ◽  
Stochastic Frontier ◽  
Farming System ◽  
Household Size ◽  
Frontier Analysis ◽  
Rice Farmers ◽  
Female Farmers

The study was conducted to assess the Management practices and technical efficiency of the MASIPAG rice farmers in Isabela, Philippines. A total of 64 respondents were interviewed. Data were analyzed with descriptive and inferential statistics using Stochastic Frontier Analysis. The data revealed that 82.81% of farmers were male and 17.19 % were female, farmers have an average age of 43.94. The average household size were 5.72, majority of the farmers finished high school, average number of years in farming of 23.84, most of the respondents farmers owned their land that they till, average number of training were 1.06, farmers have an average income of Php 47,687.50. The result showed that the average amount of seed applied by the MASIPAG farmers were 55.66 kilograms per hectare. MASIPAG used organic fertilizer. In terms of managing pest in their production, MASIPAG farmers used natural materials like FPJ, FFA, and FAA. SFA indicated that seeds, fertilizer, pre and post-harvest labor and capital were found to be significant indicators of technical efficiency at 1% level of significance.  Technical inefficiency model showed that age, farming system, household size, educational attainment, number of years in farming, type of soil, crop establishment were found to be significant indicators of technical efficiency for the MASIPAG farmers.

Characteristics of Growth and Yield Formation of Rice in Rice-Fish Farming System

2006 ◽  
Vol 5 (2) ◽  
pp. 103-110 ◽  
Author(s):  
Yong YANG ◽  
Hong-cheng ZHANG ◽  
Xiao-jun HU ◽  
Qi-gen DAI ◽  
Yong-jiang ZHANG
Keyword(s):  
Fish Farming ◽  
Farming System ◽  
Growth And Yield ◽  
Rice Fish ◽  
Yield Formation

scholarly journals Labour efficiency in construction industry in Europe based on frontier methods: data envelopment analysis and stochastic frontier analysis

2017 ◽  
Vol 23 (6) ◽  
pp. 787-795 ◽  
Author(s):  
Joanicjusz NAZARKO ◽  
Ewa CHODAKOWSKA
Keyword(s):  
Data Envelopment Analysis ◽  
Construction Industry ◽  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Efficiency Analysis ◽  
European Countries ◽  
Personnel Cost ◽  
Data Envelopment ◽  
Frontier Analysis

The primary problems pertaining to productivity or – more precisely – efficiency are: how to define it and how to measure it. This article studies technical efficiency in Stochastic Frontier Analysis (SFA) – the input-oriented frontier model – in the construction industry and compares it with Data Envelopment Analysis (DEA) results. The models ex­plored in this paper were constructed on the basis of two outputs and personnel cost as an input. The research sample consisted of European countries. The aim was to determine whether there are substantial differences in estimation of ef­ficiency derived from those two alternative frontier approaches. The comparison of results according to the models may translate into higher reliability of the undertaken labour efficiency analysis in construction and its conclusions. Although the results are not characterized by high compatibility, the conducted analysis indicated the most attractive countries taking into account labour cost to profit and turnover ratios of enterprises. One of the determinants which should not be ignored when analysing the labour efficiency is the level of development of a country; however, it is not the sole factor affecting the efficiency of the sector.

Impact of financial liquidity and solvency on cost efficiency: evidence from US banking system

2020 ◽  
Vol 37 (2) ◽  
pp. 391-410
Author(s):  
Kekoura Sakouvogui ◽  
Saleem Shaik
Keyword(s):  
Financial Crisis ◽  
Cost Efficiency ◽  
Stochastic Frontier Analysis ◽  
Banking System ◽  
Tobit Regression ◽  
Content Type ◽  
Frontier Analysis ◽  
Financial Liquidity ◽  
Domestic Banks ◽  
The Cost

Purpose The purpose of this paper is to evaluate the importance of financial liquidity and solvency on US commercial and domestic banks’ cost efficiency while accounting for internal and external factors. Design/methodology/approach The Stochastic Frontier Analysis and Data Envelopment Analysis estimators are used to estimate the cost efficiency of 11,044  US commercial and domestic banks from 2005 to 2017. Using Tobit regression model, the importance of financial liquidity and solvency on cost efficiency is examined. Findings The results provide evidence that the financial liquidity and solvency negatively impact the cost efficiency of US commercial and domestic banks. Overall, US commercial and domestic banks were inefficient during the financial crisis in comparison to the tranquil period. The importance of financial solvency on the cost efficiency was not statistically significant, while the financial liquidity negatively collapsed because of contagion. Finally, the results provide evidence that the amount of total assets matters in the improvement of the cost efficiency. Originality/value This paper estimates and identifies the 2007-2009 financial crisis with liquidity, solvency or both financial factors.

scholarly journals The cost efficiency of Vietnamese banks – the difference between DEA and SFA

2020 ◽  
Vol 22 (2) ◽  
pp. 209-227
Author(s):  
Phong Hoang Nguyen ◽  
Duyen Thi Bich Pham
Keyword(s):  
Cost Efficiency ◽  
Stochastic Frontier Analysis ◽  
Random Noise ◽  
Stochastic Frontier ◽  
Time Consistency ◽  
Efficiency Frontier ◽  
Content Type ◽  
Frontier Analysis ◽  
The Difference ◽  
The Cost

PurposeThe paper aims to enrich previous findings for an emerging banking industry such as Vietnam, reporting the difference between the parametric and nonparametric methods when measuring cost efficiency. The purpose of the study is to assess the consistency in issuing policies to improve the cost efficiency of Vietnamese commercial banks.Design/methodology/approachThe cost efficiency of banks is assessed through the data envelopment analysis (DEA) and the stochastic frontier analysis (SFA). Next, five tests are conducted in succession to analyze the differences in cost efficiency measured by these two methods, including the distribution, the rankings, the identification of the best and worst banks, the time consistency and the determinants of efficiency frontier. The data are collected from the annual financial statements of Vietnamese banks during 2005–2017.FindingsThe results show that the cost efficiency obtained under the SFA models is more consistent than under the DEA models. However, the DEA-based efficiency scores are more similar in ranking order and stability over time. The inconsistency in efficiency characteristics under two different methods reminds policy makers and bank administrators to compare and select the appropriate efficiency frontier measure for each stage and specific economic conditions.Originality/valueThis paper shows the need to control for heterogeneity over banking groups and time as well as for random noise and outliers when measuring the cost efficiency.

Competition and efficiency in the non-life insurance market in South Africa

2016 ◽  
Vol 43 (6) ◽  
pp. 882-909 ◽  
Author(s):  
Abdul Latif Alhassan ◽  
Nicholas Biekpe
Keyword(s):  
Life Insurance ◽  
Fixed Effects ◽  
Stochastic Frontier Analysis ◽  
Market Competition ◽  
Empirical Relationship ◽  
Insurance Market ◽  
Profit Efficiency ◽  
Content Type ◽  
Frontier Analysis ◽  
Regulatory Policies

Purpose The purpose of this paper is to examine the empirical effect of competition on cost and profit efficiency in the South African non-life insurance market in a three-stage analysis. Design/methodology/approach Using annual firm level data on 80 non-life insurance companies from 2007 to 2012, the authors first employ the stochastic frontier analysis (SFA) to estimate cost and profit efficiency scores. In the second stage, the authors measure insurance market competition using the Panzar-Rosse (P-R) H-statistics. In the final stage, the authors estimate a fixed-effects panel regression model which controls for heteroskedasticity to examine the effect of competition on the estimated efficiency scores. Firm size, diversification, age, risk, reinsurance and leverage are employed as control variables. Findings From the SFA, the authors find average cost and profit efficiency of 80.08 and 45.71 per cent, respectively. This suggests that non-life insurers have high levels of efficiency in cost and low efficiency in profit. The annual estimates of the P-R H-statistics also suggest that firms in the market earn revenues under conditions of monopolistic competition. The authors find a positive effect of competition on cost and profit efficiency to validate the “quiet-life” hypothesis which posits that competition improves efficiency. Practical implications Regulatory policies should be directed towards enhancing competition to improve on the low profit earning potential of firms in the non-life market. Originality/value To the best of the authors’ knowledge, this study presents the first application of a non-structural measure of competition to examine the empirical relationship between competition and efficiency in insurance markets.

Profit efficiency analysis of rice production in Taiwan

2017 ◽  
Vol 9 (1) ◽  
pp. 32-47 ◽  
Author(s):  
Tsaiyu Chang ◽  
Daisuke Takahashi ◽  
Chih-Kuan Yang
Keyword(s):  
Farming System ◽  
Rice Production ◽  
Profit Efficiency ◽  
Content Type ◽  
Explanatory Variables ◽  
For Profit ◽  
Farm Survey ◽  
One Step ◽  
The Cost ◽  
Regression Adjustment

Purpose The purpose of this paper is to analyze and compare the profit efficiency of custom and self-farming methods of rice production in Taiwan. Design/methodology/approach This study examines the nature and extent of the profitability and profit efficiency of custom and self-farming based on a farm survey in Taiwan. Furthermore, it estimates the stochastic profit frontier to measure the degree of inefficiency and analyze the determinants of these inefficiencies. Findings The profitability and profit efficiency of custom farming are lower than for self-farming, and the differences in profitability are more significant for large rice farmers. The estimation results show that the custom farming area and the farmer’s age decrease efficiency and, regardless of the farming style used, larger farms have higher profit efficiency. Research limitations/implications This study’s findings show that self-farming is more favorable than custom farming for profit efficiency. This study examined this problem by conducting a regression adjustment for explanatory variables, but did not remove all self-selection bias, which may occur between profit efficiency and the choice of farming system. Originality/value Previous studies that measured the efficiency of rice farming often considered cost efficiency by the cost function, and ignored the increased profit from producing high-quality rice. This study used a one-step estimation of the profit frontier function to measure the degree of inefficiency and analyze the determinants of this inefficiency.

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.

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.

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