scholarly journals Cost Efficiency Evaluation Based on a Data Envelopment Analysis Approach by Considering Undesirable Outputs on the Basis of the Semi-Disposability Assumption

2020 ◽  
Vol 25 (1) ◽  
pp. 4
Author(s):  
Mehdi Karami Khorramabadi ◽  
Majid Yarahmadi ◽  
Mojtaba Ghiyasi
Keyword(s):  
Decision Making ◽  
Data Envelopment Analysis ◽  
Cost Efficiency ◽  
Power Plants ◽  
Returns To Scale ◽  
Data Envelopment ◽  
Efficiency Evaluation ◽  
Undesirable Outputs ◽  
Constant Returns To Scale ◽  
Variable Returns To Scale

It is considerably important to calculate the cost efficiency in data envelopment analysis for the efficiency evaluation of decision-making units. The present paper develops the classical cost efficiency model in which all the input prices are constant and certain for each decision-making unit, considering undesirable outputs under the semi-disposability assumption. The proposed models are interval and uncertain under the constant returns to scale and also variable returns to scale assumptions, for the easy solution of which, their lower and upper bounds are obtained on the basis of the theorem presented in the text. In order to simulate the proposed models and show their scientific capabilities, additionally, 56 electricity producing thermal power plants in Iran were studied in 2015. Results of the present study show that under both assumptions of constant returns to scale and variable returns to scale, the highest cost efficiency bounds belonged to the combined and steam cycle power plants. Moreover, the average of lower and upper cost efficiency bounds of the power plants under study were 34% and 35%, respectively, in 2015, under the constant returns to scale assumption, and 52% and 54%, respectively, under the variable returns to scale assumption.

scholarly journals Energy Requirement Optimization of Greenhouse Vegetable Production Using Data Envelopment Analysis (DEA) Method in Algeria

2020 ◽  
Vol 23 (2) ◽  
pp. 60-66
Author(s):  
Ahmed Nourani ◽  
Abdelaali Bencheikh
Keyword(s):  
Decision Making ◽  
Data Envelopment Analysis ◽  
Returns To Scale ◽  
Scale Model ◽  
Energy Requirements ◽  
Data Envelopment ◽  
Greenhouse Vegetable ◽  
Constant Returns To Scale ◽  
Variable Returns To Scale ◽  
Decision Making Units

AbstractAlgeria has recently experienced an important agricultural development in terms of gardening in plastic greenhouses thanks to the favourable factors (climatic conditions, etc.). In order to optimize the energy requirements, data from 29 farmers were collected, who qualitatively represent the greenhouse vegetable producers from the most productive sub-provinces of Biskra region (south of Algeria). Considering the various parametric and non-parametric methods for energy consumption optimization, data envelopment analysis is the most common non-parametric method applied. Results showed that the mean radial technical efficiency assumptions of the samples under constant returns to scale and variable returns to scale models were 0.88 and 0.98, respectively. The 51.72% of decision-making units were efficient on the basis of the constant returns to scale model; 79.31% decision-making units were observed efficient on the basis of variable returns to scale model. Calculation of optimal energy requirements for vegetable greenhouse indicated that 108.50 GJ·ha−1 can be saved on machinery (1.38 GJ·ha-1); diesel fuel (4.68 GJ·ha−1); infrastructure (9.35 GJ·ha−1); fertilizers (17.08 GJ·ha−1); farmyard manure (12.05 GJ·ha−1); pesticides (3.93 GJ·ha−1); and electricity (60.03 GJ·ha−1).

scholarly journals Cost efficiency of the Czech and Slovak banking sectors: an application of the data envelopment analysis

2016 ◽  
Author(s):  
Iveta Palecková
Keyword(s):  
Data Envelopment Analysis ◽  
Cost Efficiency ◽  
Commercial Banks ◽  
Banking Sector ◽  
Banking Industry ◽  
Returns To Scale ◽  
Data Envelopment ◽  
Cost Efficient ◽  
The Cost ◽  
Variable Returns To Scale

The aim of the paper is to estimate the cost efficiency of the Czech and Slovak commercial banks within the period 2010-2014. For empirical analysis the Data Envelopment Analysis input-oriented model with variable returns to scale is applied on the data of the commercial banks. The intermediation approach is adopted to define the inputs and outputs. The Czech commercial banks are more cost efficient than Slovak commercial banks. The development of average cost efficiency is similar in the Czech and Slovak banking industry. The most efficient Czech banks are Ceská sporitelna and Sberbank in the Czech banking sector, the most efficient Slovak bank is Privatbanka with 100% efficiency.

USING THE MINIMUM DISTANCE OF DMUs FROM THE FRONTIER OF THE PPS FOR EVALUATING GROUP PERFORMANCE OF DMUs IN DEA

2012 ◽  
Vol 29 (02) ◽  
pp. 1250010 ◽  
Author(s):  
G. R. JAHANSHAHLOO ◽  
J. VAKILI ◽  
S. M. MIRDEHGHAN
Keyword(s):  
Decision Making ◽  
Data Envelopment Analysis ◽  
Minimum Distance ◽  
Group Performance ◽  
Returns To Scale ◽  
Data Envelopment ◽  
Production Possibility ◽  
Variable Returns To Scale ◽  
Decision Making Units

Evaluating group performance of decision-making units (DMUs) is an application of data envelopment analysis (DEA) and usually provides a measure to compare the frontiers of the production possibility sets (PPSs) corresponding to different groups and the internal inefficiencies of DMUs associated with their group. In this paper, first, a method is presented for obtaining the minimum distance of DMUs from the frontier of the PPS by ‖⋅‖1, which itself can be a very important subject in DEA, and then, for stating an application of these distances, an approach is provided for evaluating group performance of DMUs based on the production ability of the PPSs such that both constant and variable returns to scale assumptions can be used in this method in contrast with some other methods. Therefore, providing the methods for both obtaining the minimum distance of DMUs from the frontier of the PPS and evaluating group performance of DMUs is the most important contribution of this paper.

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.

Technical Efficiency of State Road Transport Undertakings in India - Data Envelopment Analysis

2012 ◽  
Vol 1 (2) ◽  
pp. 31-42 ◽  
Author(s):  
V. Prakash ◽  
J. Rajesh ◽  
M. Thilagam
Keyword(s):  
Decision Making ◽  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Relative Efficiency ◽  
Fuel Efficiency ◽  
Returns To Scale ◽  
Road Transport ◽  
Data Envelopment ◽  
Variable Returns To Scale ◽  
Decision Making Units

Data envelopment analysis (DEA) is a method of analyzing the relative efficiency of similar types of organizations known as decision making units (DMU’s). In this paper, DEA model is applied to evaluate the relative technical efficiency of state road transport undertakings (SRTU’s) in India during the period 2011-2012. The authors have considered thirty-four SRTU’s functioning in India. The variables chosen to characteristic production units are the number of fleet held, staff strength and fuel efficiency as inputs and Passengers carried as output. The BCC model is input- oriented allowing for variable returns to scale (VRS), units are ranked and the projection analyses are given.

scholarly journals A Fuzzy Approach to Support Evaluation of Fuzzy Cross Efficiency

Symmetry ◽  
2021 ◽  
Vol 13 (5) ◽  
pp. 882
Author(s):  
Shun-Cheng Wu ◽  
Tim Lu ◽  
Shiang-Tai Liu
Keyword(s):  
Decision Making ◽  
Evaluation Method ◽  
Optimization Problems ◽  
Evaluation Model ◽  
Returns To Scale ◽  
Efficiency Evaluation ◽  
Dea Models ◽  
Production Technologies ◽  
Constant Returns To Scale ◽  
Variable Returns To Scale

Cross-efficiency evaluation effectively distinguishes a set of decision-making units (DMUs) via self- and peer-evaluations. In constant returns to scale, this evaluation technique is usually applied for data envelopment analysis (DEA) models because negative efficiencies will not occur in this case. For situations of variable returns to scale, the negative cross-efficiencies may occur in this evaluation method. In the real world, the observations could be uncertain and difficult to measure precisely. The existing fuzzy cross-evaluation methods are restricted to production technologies with constant returns to scale. Generally, symmetry is a fundamental characteristic of binary relations used when modeling optimization problems. Additionally, the notion of symmetry appeared in many studies about uncertain theories employed in DEA problems, and this approach can be considered an engineering tool for supporting decision-making. This paper proposes a fuzzy cross-efficiency evaluation model with fuzzy observations under variable returns to scale. Since all possible weights of all DMUs are considered, a choice of weights is not required. Most importantly, negative cross-efficiencies are not produced. An example shows that this paper’s fuzzy cross-efficiency evaluation method has discriminative power in ranking the DMUs when observations are fuzzy numbers.

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 An Entropy-Based Cross-Efficiency under Variable Returns to Scale

Entropy ◽  
2019 ◽  
Vol 21 (12) ◽  
pp. 1205
Author(s):  
Chun-Hsiung Su ◽  
Tim Lu
Keyword(s):  
Evaluation Method ◽  
Returns To Scale ◽  
Peer Evaluation ◽  
Data Envelopment ◽  
Efficiency Evaluation ◽  
Dea Models ◽  
Constant Returns To Scale ◽  
Numerical Index ◽  
Variable Returns To Scale ◽  
Decision Making Units

Cross-efficiency evaluation is an effective methodology for discriminating among a set of decision-making units (DMUs) through both self- and peer-evaluation methods. This evaluation technique is usually used for data envelopment analysis (DEA) models with constant returns to scale due to the fact that negative efficiencies never happen in this case. For cases of variable returns to scale (VRSs), the evaluation may generate negative cross-efficiencies. However, when the production technology is known to be VRS, a VRS model must be used. In this case, negative efficiencies may occur. Negative efficiencies are unreasonable and cause difficulties in calculating the final cross-efficiency. In this paper, we propose a cross-efficiency evaluation method, with the technology of VRS. The cross-efficiency intervals of DMUs were derived from the associated aggressive and benevolent formulations. More importantly, the proposed approach does not produce negative efficiencies. For comparison of DMUs with their cross-efficiency intervals, a numerical index is required. Since the concept of entropy is an effective tool to measure the uncertainty, this concept was employed to build an index for ranking DMUs with cross efficiency intervals. A real-case example was used to illustrate the approach proposed in this paper.

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 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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