scholarly journals A Novel Hybrid Parametric and Non-Parametric Optimisation Model for Average Technical Efficiency Assessment in Public Hospitals during and Post-COVID-19 Pandemic

2021 ◽  
Vol 9 (1) ◽  
pp. 7
Author(s):  
Mirpouya Mirmozaffari ◽  
Reza Yazdani ◽  
Elham Shadkam ◽  
Seyed Mohammad Khalili ◽  
Leyla Sadat Tavassoli ◽  
...  
Keyword(s):  
Technical Efficiency ◽  
Financial Stability ◽  
Stochastic Frontier Analysis ◽  
Parametric Method ◽  
Stochastic Frontier ◽  
Integrated Approach ◽  
Public Hospitals ◽  
Statistical Testing ◽  
Frontier Analysis ◽  
Non Parametric

The COVID-19 pandemic has had a significant impact on hospitals and healthcare systems around the world. The cost of business disruption combined with lingering COVID-19 costs has placed many public hospitals on a course to insolvency. To quickly return to financial stability, hospitals should implement efficiency measure. An average technical efficiency (ATE) model made up of data envelopment analysis (DEA) and stochastic frontier analysis (SFA) for assessing efficiency in public hospitals during and after the COVID-19 pandemic is offered. The DEA method is a non-parametric method that requires no information other than the input and output quantities. SFA is a parametric method that considers stochastic noise in data and allows statistical testing of hypotheses about production structure and degree of inefficiency. The rationale for using these two competing approaches is to balance each method’s strengths, weaknesses and introduce a novel integrated approach. To show the applicability and efficacy of the proposed hybrid VRS-CRS-SFA (VCS) model, a case study is presented.

Technical Efficiency Through Innovative Methods and Estimations in Financial Markets

2021 ◽  
pp. 55-70
Author(s):  
Aikaterini Kokkinou
Keyword(s):  
Financial Markets ◽  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Productive Efficiency ◽  
Data Envelopment ◽  
Frontier Analysis ◽  
Parametric Data ◽  
Efficiency Estimation ◽  
Non Parametric

This paper investigates technical efficiency estimation in financial markets, using both parametric and non-parametric techniques: parametric Stochastic Frontier Analysis (SFA) approach or non-parametric Data Envelopment Analysis (DEA). This chapter focuses on reviewing the stochastic frontier analysis literature regarding estimating inefficiency in financial markets level, as well as explaining producer heterogeneity along with the relationships with productive efficiency level. This chapter investigates technical efficiency estimation in financial markets, using both parametric and non-parametric techniques: parametric Stochastic Frontier Analysis (SFA) approach or non-parametric Data Envelopment Analysis (DEA). More specifically, this chapter focuses on reviewing the stochastic frontier analysis literature regarding estimating inefficiency, its industrial level, as well as explaining producer heterogeneity along with the relationships with productive efficiency level.

scholarly journals Technical Efficiency of Traditional Village Chicken Production in Africa: Entry Points for Sustainable Transformation and Improved Livelihood

2021 ◽  
Vol 13 (15) ◽  
pp. 8539
Author(s):  
Mulugeta Y. Birhanu ◽  
Tesfahun Alemayehu ◽  
Jasmine E. Bruno ◽  
Fasil Getachew Kebede ◽  
Emmanuel Babafunso Sonaiya ◽  
...  
Keyword(s):  
Technical Efficiency ◽  
Production System ◽  
Stochastic Frontier Analysis ◽  
National Level ◽  
Stochastic Frontier ◽  
Integrated Approach ◽  
Flock Size ◽  
Village Chicken ◽  
Frontier Analysis ◽  
Entry Points

Increasing poultry product consumption trends have attracted researchers and development practitioners to look for interventions that transform the low-input low-output-based village chicken production to a high yielding production system. However, due to the intricate nature of the production system, there is a dearth of evidence that helps design comprehensive interventions at the smallholder level. Using national-level representative data collected from 3555 village chicken producers in Ethiopia, Nigeria, and Tanzania, this study examines the technical efficiency of village chicken production and investigates the main factors that explain the level of inefficiency. We applied a stochastic frontier analysis to simultaneously quantify the level of technical efficiency and identify factors associated with heterogeneity in inefficiency. We found that the level of technical efficiency is extremely low in the three countries, suggesting enormous opportunities to enhance productivity using available resources. The heterogeneity in technical efficiency is strongly associated with producers’ experience in breed improvements and flock management, limited technical knowledge and skills, limited access to institutions and markets, smaller flock size, gender disparities, and household livelihood orientation. We argue the need to adopt an integrated approach to enhance village producers’ productivity and transform the traditional subsistence-based production system into a commercially oriented semi-intensive production system.

scholarly journals Efficiency of European Airports: Parametric Versus Non-parametric Approach

2021 ◽  
Vol 12 (1) ◽  
pp. 1-14
Author(s):  
Marketa Matulova ◽  
Jana Rejentova
Keyword(s):  
Normal Distribution ◽  
Stochastic Frontier Analysis ◽  
Parametric Method ◽  
Stochastic Frontier ◽  
Efficiency Score ◽  
Evaluation Procedure ◽  
Frontier Analysis ◽  
Single Output ◽  
Dea Models ◽  
Non Parametric

This paper presents a performance evaluation of European airports, based on the application of both parametric and non-parametric approaches. We have evaluated the 115 busiest airports in Europe according to the number of passengers checked-in in 2018. The four inputs we used were the number of Terminals, Runways, Boarding gates, and Aircraft stands. Three variables were used to describe the outputs, namely, Passengers, Movements, and Cargo. The parametric method we chose to apply was the Stochastic Frontier Analysis (SFA) with the Cobb-Douglas production function, the Half-Normal distribution of inefficiency component, and the Normal distribution of an error term. As a basic SFA model only allows for a single output, we employed different methods to get a single efficiency score for each and every airport. Next, we evaluated the airport performance non-parametrically using several Data Envelope Analysis (DEA) models including the super-efficiency model. We compared the results obtained by individual approaches and discussed their pros and cons. Finally, we applied the program evaluation procedure to explore the effect of the different forms of airports ownership on their performance.

scholarly journals Sensitivity of technical efficiency estimates to estimation methods: an empirical comparison of parametric and non-parametric approaches

2014 ◽  
Vol 8 (1) ◽  
pp. 67-72 ◽  
Author(s):  
Henry de-Graft Acquah
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Ordinary Least Squares ◽  
Estimation Methods ◽  
Strong Positive Correlation ◽  
Production Frontier ◽  
Frontier Analysis ◽  
Parametric Data ◽  
Non Parametric

This paper highlights the sensitivity of technical efficiency estimates to estimation approaches using empirical data. Firm specific technical efficiency and mean technical efficiency are estimated using the non parametric Data Envelope Analysis (DEA) and the parametric Corrected Ordinary Least Squares (COLS) and Stochastic Frontier Analysis (SFA) approaches. Mean technical efficiency is found to be sensitive to the choice of estimation technique. Analysis of variance and Tukey’s test suggests significant differences in means between efficiency scores from different methods. In general the DEA and SFA frontiers resulted in higher mean technical efficiency estimates than the COLS production frontier. The efficiency estimates of the DEA have the smallest variability when compared with the SFA and COLS. There exists a strong positive correlation between the efficiency estimates based on the three methods.  

scholarly journals EFFICIENCY EVALUATION IN PUBLIC ROAD TRANSPORT: A STOCHASTIC FRONTIER ANALYSIS

Transport ◽  
2013 ◽  
Vol 30 (1) ◽  
pp. 1-14 ◽  
Author(s):  
Sami Jarboui ◽  
Pascal Forget ◽  
Younes Boujelben
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Parametric Method ◽  
Stochastic Frontier ◽  
Road Transport ◽  
Developed Countries ◽  
Frontier Analysis ◽  
Operating Profit ◽  
Public Road ◽  
Investment Capacity

This paper measures the technical efficiency of 54 public road transport operators and investigates the degree to which various factors influence efficiency levels in these firms. The study makes an attempt to provide an overview of the general status of different operators in 18 countries. Stochastic Frontier Analysis (SFA) methods are applied to our sample over a twelve year period from 2000 to 2011. To our knowledge, this is the first comprehensive analysis of technical efficiency of public road transport operators in 18 countries using parametric method. Our empirical results indicate that investment, operating profit and firm size have a significant influence on technical efficiency levels. We find that technical efficiency level of public road transport operators varies between 0.458 and 0.95. We also observe that large-size operators with more investment capacity tend to be more technically efficient than small-size operators. Finally, we find that operators from developed countries are technically more efficient than those of developing countries.

scholarly journals Technical Efficiency of Smallholder Tomato Production in Semi-Urban Farms in Cameroon: A Stochastic Frontier Production Approach

2017 ◽  
Vol 7 (4) ◽  
pp. 27 ◽  
Author(s):  
Martin Paul Jr. Tabe-Ojong ◽  
Ernest L. Molua
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Smallholder Farmers ◽  
Research Question ◽  
Stochastic Frontier ◽  
Negative Influence ◽  
Farm Size ◽  
Primary Data ◽  
Tomato Production ◽  
Frontier Analysis

Agriculture is the mainstay of Cameroon’s economy as it serves the purposes of food, livelihood and employment. Nevertheless, the country’s agriculture is plagued by low productivity and inefficiency in production. One of the main reasons for low productivity is the inability of farmers to fully exploit available technologies and production techniques. An important research question that comes to mind is, what are the major factors that hinder the technical efficiency of smallholder farmers? This study thus aimed to determine the level of technical efficiency in the production of tomato in smallholder farms, relying on primary data collected using a structured survey instrument administered to 80 tomato farmers in the Buea municipality of Cameroon. Data was analyzed using descriptive statistics and a stochastic frontier analysis method in the Cobb-Douglas production function. The STATA.14 software was used to obtain both stochastic frontier estimates and the determinants of technical efficiency. The results indicate that farmers are not fully technically efficient with a mean technical efficiency score of 0.68 with one farmer operating on the frontier. The study also revealed that most of the farmers irrespective of the size of the holdings have shown technical inefficiency problems. The older farmers were observed with the best measures of technical efficiency. Education, age and the adoption and practice of agronomic techniques had a positive and significant influence on technical efficiency while the nearest distance to the extension agent had a rather negative influence on technical efficiency. The input-output relationship showed that the area of tomato cultivation and the quantity of improved seed used were positive and significantly related to output at the 5% level of probability. As a result, it is recommended that farmers should increase their farm size, use of improved seeds and the adoption and practice of novel techniques in production. More emphasis should be placed on extension agents as they have a significant role to play in terms of improving and augmenting farmers’ education and information base through on farm demonstrations and result oriented workshops as all this will ensure increased production and productivity thereby increasing technical efficiency and achieving food self-sufficiency.

scholarly journals Technical Efficiency and Small Scale Maize Producers in Mwanza Region: A Stochastic Frontier Analysis

2021 ◽  
Vol 9 (3) ◽  
Author(s):  
Mukole Kongolo
Keyword(s):  
Technical Efficiency ◽  
Best Practice ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Likelihood Estimation ◽  
Estimation Procedure ◽  
Farm Size ◽  
Small Scale ◽  
Maize Production ◽  
Frontier Analysis

This study measured technical efficiency and its determinants in maize production by small-scale producers in Mwanza region, using a stochastic frontier production function approach. A randomly selected sample of participants in the two districts was used. The Maximum Likelihood estimation procedure was followed to obtain the determinants of technical efficiency and technical efficiency levels of small-scale maize producers. The minimum and maximum values of technical efficiency were between 20% and 91%, indicating that the least practices of specific producer operates at a minimum level of 20%, while the best practice producers  operate  at 91% technical efficiency  level respectively. The summary results of the mean technical efficiency was 63%. The main determinants of technical efficiency were labour, farm size, producer’s experience, producer’s age, family size which were all positive and statistically significant. The findings suggest that the average efficiency of small-scale maize producers could be improved by 37% through better use of existing resources and technology. These findings highlight the need for action by government to assist small-scale maize producers improve efficiency.

scholarly journals Technical Efficiency among Pepper Farmers in Sarawak, Malaysia: A Stochastic Frontier Analysis

2020 ◽  
Vol 10 (3) ◽  
pp. 729-739
Author(s):  
Anita Rosli ◽  
Alias Radam ◽  
Khalid Abdul Rahim ◽  
Amin Mahir Abdullah
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Agricultural Practices ◽  
Piper Nigrum ◽  
Maximum Output ◽  
Full Time ◽  
Frontier Analysis ◽  
One Step ◽  
The Mean

This study aimed to estimate the technical efficiency among pepper (Piper nigrum. L) farmers in Sarawak, Malaysia, using Stochastic Frontier Analysis (SFA). SFA involves a one-step process that can estimate technical inefficacy factors simultaneously with the production frontier. 678 pepper farmers were involved in this study, and the data were collected from 2012 to 2013. The mean score for technical efficiency was 0.518, indicating that pepper farmers were not efficient. However, the inefficiency model showed that education level, membership in farmers’ association, full-time as a pepper farmer, attending courses and visiting sample farms were factors that significantly improved inefficiency. The major problem of pepper farming in Sarawak is poor agricultural practices where farmers do not fully utilize the available agricultural inputs to produce maximum output. Based on the findings, farmers must improve their knowledge and skills in pepper farming through agronomic education.

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