scholarly journals Appropriate Distribution of Cost Inefficiency Estimates as Predictor of Financial Instability

2020 ◽  
Vol 30 (3) ◽  
pp. 1071
Author(s):  
Juan Cándido Gómez-Gallego ◽  
Juan Gómez-García ◽  
María Concepción Pérez-Cárceles
Keyword(s):  
Normal Distribution ◽  
Stochastic Frontier ◽  
Banking System ◽  
Theoretical Distribution ◽  
Financial Instability ◽  
Stochastic Frontier Model ◽  
Validation Process ◽  
Financial Situation ◽  
Initial Assumption ◽  
Cost Inefficiency

The study develops a hypothesis validation process to test whether estimated cost inefficiency fits the theoretical distribution of the estimate of inefficiency, given the initial assumption of a half normal distribution for the inefficiency term in the stochastic frontier model. The application of this methodology to a sample of Spanish banks in the period 2002-2007 allows us to observe the evolution of the distributions of estimated cost inefficiency. The results confirm for the existence of a relationship between estimated cost inefficiency and the financial situation of these entities. In fact, an increase in the probability of higher levels of inefficiency is observed the period of study, coinciding with the beginning of financial instability in the Spanish banking system.

scholarly journals Estimation of technical efficiency of black cumin (Nigella sativa L.) farming in northwest Ethiopia: a stochastic frontier approach

2020 ◽  
Vol 9 (1) ◽  
Author(s):  
Abebe Birara Dessie ◽  
Tadie Mirie Abate ◽  
Betelhem Tsedalu Adane ◽  
Tiru Tesfa ◽  
Shegaw Getu
Keyword(s):  
Technical Efficiency ◽  
Nigella Sativa ◽  
Stochastic Frontier ◽  
Market Price ◽  
Northwest Ethiopia ◽  
Flowering Plant ◽  
Yield Potential ◽  
Stochastic Frontier Model ◽  
Black Cumin ◽  
The Mean

Abstract Ethiopia is one of the east African countries which produce and exports various spices to other countries. Black cumin (Nigella sativa L.) is an important stiff annual flowering plant which mainly grows by producers for its seeds. An increasing demand of black cumin seed and oil in local, national and international market for medicinal, consumption and commercial purpose makes the best alternative crop for small holder farmers in Ethiopia. In spite of its importance, not much has been done to improve its production and productivity in Ethiopia. Therefore, this research was designed to examining efficiency variations and factors influencing technical inefficiency levels of producers on black cumin production in northwest Ethiopia. Primary data were collected using a semi-structured questionnaire administered on 188 black cumin producers selected using systematic random sampling technique. Moreover, various data analysis methods such as descriptive statistics and stochastic frontier model were used for analyzing the data. The empirical result obtained by applying maximum likelihood estimate of stochastic frontier model revealed that seed (p < 0.01) labor (p < 0.05), chemical (p < 0.01) and land (p < 0.05) were significant input variables in determining black cumin production. The mean technical efficiency level of black cumin producer was generally low, about 53.1%. The mean value of actual yield, potential yield and yield gap was 3.131, 5.832 and 2.701 quintals, respectively. Moreover, the result of stochastic frontier model together with the inefficiency parameters revealed that market price of black cumin (p < 0.01) and access of extension service (p < 0.1) were significant variables and positively influenced the efficiency levels of black cumin producers. Whereas age of producers (p < 0.05) and distance to farm plot (p < 0.01) negatively influenced the technical efficiency levels of black cumin producers. Therefore, the study recommends that adoption of latest agricultural technologies; development of institutions, agricultural extension services and infrastructure are advisable to improve the efficiency and commercial value of black cumin production.

scholarly journals How Earmarking Government Revenue Affects Efficiency of Road Construction and Maintenance

2021 ◽  
Vol 49 (1) ◽  
pp. 136-163
Author(s):  
Ramon Christen ◽  
Nils C. Soguel
Keyword(s):  
Public Choice ◽  
Public Administration ◽  
Stochastic Frontier ◽  
Road Construction ◽  
Transport Infrastructure ◽  
Government Revenue ◽  
Stochastic Frontier Model ◽  
Public Resources ◽  
Negative Effect ◽  
Per Capita

It is common practice to assign revenue to accomplish specific governmental tasks in general and to provide transport infrastructure in particular. However, neither the literature in public administration nor in public choice has reached a consensus about the effects that earmarking has on efficiency. Building on earlier public choice models, we argue that this mechanism prevents budget debates from occurring and reduces the incentives for ministers to monitor the colleagues whose budgets are financed by earmarked revenues. These latter tend to overuse public resources, thus increasing inefficiency. A stochastic frontier model fed with data from Swiss cantonal ministries of transport from 2000 to 2016 tests this hypothesis. The results reveal a negative effect of earmarking on efficiency. For every 1,000 additional Swiss francs per capita financed out of an earmarked fund, the input requirement increases by 5.4 percent on average.

scholarly journals EVALUATION OF FUNCTIONAL PERFORMANCE OF THE BANKING SYSTEM OF UKRAINE IN CONDITIONS FINANCIAL INSTABILITY

2021 ◽  
Author(s):  
Nataliia Danik ◽  
Kateryna Novak ◽  
Anastasiia Yakovenko
Keyword(s):  
Economic Crisis ◽  
Financial Stability ◽  
Structural Changes ◽  
Banking Sector ◽  
Synergistic Effects ◽  
Banking System ◽  
Scientific Article ◽  
Financial Instability ◽  
Industrial Complex ◽  
The Impact

The article covers the problems of the functioning of the banking sector of Ukraine during 2018-2021, as one of the main sectors of the financial market and the national economy as a whole. When analyzing the state of the banking sector, regularities and general trends in the functioning of the banking sector of Ukraine have been established, and appropriate calculations have been made. The impact of global financial crises on the activities of banking structures, which must operate in conditions of constant financial instability, is described. Today, the whole world, including Ukraine, is on the verge of a global financial and economic crisis. This raises the question of whether Ukrainian banks have the necessary margin of resilience to vulnerabilities to the financial and economic crisis. In recent years, the functioning and development of the banking system has been characterized by increased financial stability, the level of bank capitalization, liquidity, some improvement in asset quality, reducing risks in banking, as well as the presence of positive structural changes. Today, Ukraine's banking system operates in a complex socio-economic and legal environment, most of which - macroeconomic instability, irrational structure of the industrial complex, the crisis of science and technology, imperfect fiscal and monetary policy, low level of effective demand - complicate sustainable development banking sector and increase competitiveness. In conditions of instability, intensification of turbulent processes, the development of the banking system requires new innovative approaches to determining the mechanisms of effective functioning and stable development based on a system-synergetic approach, which led to the choice and relevance of the chosen topic of this scientific article. Efficiency of banks is a multicomponent, multifaceted, multidimensional system characteristic that depends on many factors and is an effective indicator of performance of functions and achievement of goals and objectives of banks development provided financial stability based on financial stability and dynamic balance, achievement of multiplicative and synergistic effects.

scholarly journals The Distribution of Larvae of Randomly Moving Insects

1961 ◽  
Vol 14 (4) ◽  
pp. 598 ◽  
Author(s):  
EJ Williams
Keyword(s):  
Normal Distribution ◽  
Bessel Function ◽  
Theoretical Distribution ◽  
Frequency Function ◽  
Published Data ◽  
Modified Bessel Function ◽  
Theoretical Conclusion ◽  
Constant Rate ◽  
Spatially Distributed ◽  
Good Agreement

Though randomly moving insects released from a central point in a uniform environment are often found to be distributed according to a circular normal distribution, their larvae will not conform to this distribution. When such insects lay at a constant rate and are subject to constant mortality, their larvae are found to be spatially distributed according to a highly peaked frequency function, depending on the modified Bessel function of the second kind. This theoretical conclusion is in good agreement with published data. Some of the properties of the theoretical distribution are discussed.

Likelihood computation in the normal-gamma stochastic frontier model

2017 ◽  
Vol 33 (2) ◽  
pp. 967-982 ◽  
Author(s):  
Bernardo B. de Andrade ◽  
Geraldo S. Souza
Keyword(s):  
Stochastic Frontier ◽  
Stochastic Frontier Model
Sign in / Sign up

Export Citation Format

Share Document