scholarly journals Technical Efficiency in Public Hospitals in Kenya: A Two –Stage Data Envelopment Analysis

2018 ◽  
Vol 10 (6) ◽  
pp. 141
Author(s):  
Francis Kimani Mwihia ◽  
James Machoki M’ Imunya ◽  
Germano Mwabu ◽  
Urbanus M. Kioko ◽  
Benson B. A. Estambale

The paper uses the DEA technique to estimate efficiency scores in Kenyan public hospitals and then applies the Tobit regression to study inter-hospital variation in the scores. The DEA analysis reveals that small hospitals are more efficient than large hospitals, with efficiency levels ranging from 74-91% in small DMUs and from 57-78% in large DMUs. Tobit regression analysis shows efficiency scores are negatively correlated with the hospital’s distance from the manager’s residence and from the capital city. Internal and external supervisions are suggested as mechanisms for increasing performance of hospitals.

2017 ◽  
Vol 6 (1) ◽  
pp. 111-125 ◽  
Author(s):  
Ombir Singh ◽  
Sanjeev Bansal

Abstract The paper investigates and compares the performance of the Indian public sector banks (PSBs) based on revenue maximising efficiency in the deregulation period from 2001-02 to 2012-13. Several efficiency estimates viz., overall technical efficiency, pure technical efficiency and scale efficiency of individual banks are calculated using Data Envelopment Analysis (DEA). The empirical findings indicate the presence of managerial and scale inefficiencies in the operation of the most of the PSBs. Applying the Tobit regression analysis, the paper also assesses the impact of different environmental factors, like profitability, the level of non-performing assets, size etc. on the efficiency of PSBs. It is observed that banks with high profitability, low level of non-performing assets, and relatively larger size are more technically efficient.


2019 ◽  
Vol 32 (1) ◽  
pp. 60-74 ◽  
Author(s):  
Sophia Xiaoxia Duan ◽  
Hepu Deng ◽  
Feng Luo

Purpose Effectively evaluating the efficiency of individual e-markets for better understanding the efficiency-oriented critical drivers for individual e-markets is of great significance to the development of electronic business. The purpose of this paper is to develop an approach through adequately integrating data envelopment analysis (DEA) and bootstrapped Tobit regression analysis for identifying the efficiency-oriented critical drivers on the development of e-market in electronic business. Design/methodology/approach A review of the related literature is conducted for adequately formulating the e-market evaluation problem. DEA is appropriately used for assessing the efficiency of available e-markets, leading to the identification of the efficient e-market. Tobit regression analysis is then employed to examine the outcome of the DEA analysis for identifying the efficiency-oriented critical drivers in the development of e-markets in electronic business. Findings A better understanding of the operations of individual e-markets with respect to their overall efficiency in electronic business can be achieved with the use of the developed approach. Such understanding is built on the identification of the efficiency-oriented critical drivers on the development of e-market in electronic business. Originality/value This paper develops a novel approach for better understanding of the operations of individual e-markets with respect to their overall efficiency in electronic business. The adoption of this approach helps existing e-markets improve their efficiency by focussing on the efficiency-oriented critical drivers and provide new players in e-markets with guidelines for developing their efficient e-markets.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahmoud Abdelrahman Kamel ◽  
Mohamed El-Sayed Mousa

PurposeThis study used Data Envelopment Analysis (DEA) to measure and evaluate the operational efficiency of 26 isolation hospitals in Egypt during the COVID-19 pandemic, as well as identifying the most important inputs affecting their efficiency.Design/methodology/approachTo measure the operational efficiency of isolation hospitals, this paper combined three interrelated methodologies including DEA, sensitivity analysis and Tobit regression, as well as three inputs (number of physicians, number of nurses and number of beds) and three outputs (number of infections, number of recoveries and number of deaths). Available data were analyzed through R v.4.0.1 software to achieve the study purpose.FindingsBased on DEA analysis, out of 26 isolation hospitals, only 4 were found efficient according to CCR model and 12 out of 26 hospitals achieved efficiency under the BCC model, Tobit regression results confirmed that the number of nurses and the number of beds are common factors impacted the operational efficiency of isolation hospitals, while the number of physicians had no significant effect on efficiency.Research limitations/implicationsThe limits of this study related to measuring the operational efficiency of isolation hospitals in Egypt considering the available data for the period from February to August 2020. DEA analysis can also be an important benchmarking tool for measuring the operational efficiency of isolation hospitals, for identifying their ability to utilize and allocate their resources in an optimal manner (Demand vs Capacity Dilemma), which in turn, encountering this pandemic and protect citizens' health.Originality/valueDespite the intensity of studies that dealt with measuring hospital efficiency, this study to the best of our knowledge is one of the first attempts to measure the efficiency of hospitals in Egypt in times of health' crisis, especially, during the COVID-19 pandemic, to identify the best allocation of resources to achieve the highest level of efficiency during this pandemic.


2021 ◽  
Vol 5 (4) ◽  
pp. 1191-1205
Author(s):  
Ryan Winarso ◽  
◽  
Syafrial Syafrial ◽  
Wiwit Widyawati

Shallot has the highest production value in Indonesia. High production value indicates that shallot is an important commodity, therefore, its potential must be improved. Technical efficiency analysis can be used to measure production efficiency and possible input reduction to maximize the production potential of shallot. The chosen location for this research is Torongrejo Village Batu City, East Java. Shallot productivity value of Batu City is comparable to other central shallot production areas in East Java. The purpose of this research is to understand the farming system and production efficiency of shallot alongside with socio-economics factors affecting its efficiency level. Research method used in this research consists of: profitability analysis of shallot farming, analysis using Data Envelopment Analysis (DEA) to analyze the technical efficiency of shallot production, and Tobit regression to analyze socio-economics factors affecting technical efficiency level. The results from the analyses shows that shallot farming in Torongrejo Village has the R/C ratio of 2,09, with the DEA-CRS technical qfficiency value of 87,7 percent, DEA-VRS technical efficiency value of 99 percent and scale efficiency value of 88,6 percent. The result from Tobit regression using DEA-VRS as dependent variable shows that farming experience and formal education has positive and significant effect on technical efficiency (TE) level, and land ownership status has negative and significant effect on TE level. Shallot production efficiency can be increased by using reduced inputs therefore able to increase farming profit while keep improving farmers’ education and agriculture extension programs for the next generation of farmers.


1997 ◽  
Vol 29 (2) ◽  
pp. 409-418 ◽  
Author(s):  
Jeffrey Gillespie ◽  
Alvin Schupp ◽  
Gary Taylor

AbstractTechnical efficiency measures are calculated for ratite producers using data envelopment analysis. Regression analysis is then used to determine producer characteristics that are likely to lead to higher technical efficiencies. Results indicate that the most technically efficient ratite producers in Louisiana are not producing at the benchmark efficiency level advocated by the industry. Producer experience with other livestock, specialization, and labor are factors likely to lead to higher technical efficiency. These results are expected to hold for most new, alternative livestock enterprises.


2020 ◽  
Vol 12 (3) ◽  
pp. 121
Author(s):  
Abdullah M. Alsabah ◽  
Hassan Haghparast-Bidgoli ◽  
Jolene Skordis

The recent drop in oil prices has challenged public sector financing in Kuwait. Technical and scale efficiency scores for fifteen public hospitals in Kuwait from 2010 to 2014 were estimated using a two-stage data envelopment analysis (DEA). Technical efficiency scores were regressed against institutional characteristics using Tobit regression to investigate the determinants of efficiency differences in hospitals. Semi-structured interviews were also carried out with fourteen public and private hospital managers to qualitatively explore their perceptions and experience about about factors affecting hospital efficiency. The mean technical efficiency score for all hospitals was 85.8%, an improvement of 2% since 2010. The mean pure technical efficiency score was 79.6%, improving from 75% in 2010 to 81.2% in 2014. The mean scale efficiency score was 91.8%, improving from 87.6% in 2010 to 94.2% in 2014. Only three hospitals were constantly technically and scale efficient. Tobit regression showed that hospital efficiency was significantly associated with the average length of patient stay. Hospitals with more than 400 beds were potentially more technically and scale efficient. The qualitative study revealed that external factors affecting efficiency commonly included implemention of legislative changes and decreasing bureaucracy, while internal factors included increasing bed capacity and improving qualifications and training of human resources. Most public hospitals in Kuwait were not technically and scale efficient, but improvements were observed. Potential factors that affected the efficiency of hospitals in Kuwait were identified. These findings are useful to decision-makers in Kuwait for developing strategies to improve public hospital efficiency.


2016 ◽  
Vol 18 (3) ◽  
pp. 307-332
Author(s):  
Mokhamad Anwar

This paper evaluates the performance of Indonesian banking sector, focusing on technical efficiency of sharia and conventional banks along with the determinants of its efficiency during the period 2002-2010. Data Envelopment Analysis is employed to estimate banks technical efficiency and Tobit-regression is used to reveal the determinants of the efficiency over the panel data of 116 banks, including 109 conventional banks and 7 sharia banks. The result shows that sharia banks outperformed conventional banks in one model when it takes into account small business finance (SBF) as one of the output components in the model. Sharia banks have higher average SBF portfolio than those of conventional banks’ portfolio. The result indicates the efforts of Indonesian sharia banks to obey one of the principles in Islamic banking, “the emphasis on Islamic principles of morality”. By observing all models, it is concluded that the size of the bank, capital adequacy and liquidity are of banks characteristic factors which are very important to increase banks’ efficiency


2018 ◽  
Vol 6 (5) ◽  
pp. 346-368
Author(s):  
A. ALIYU ◽  
K. BELLO

The present study examined the economic efficiency of rubber smallholders in Peninsular Malaysia in a disaggregated form using Banker Charnes and Cooper (BCC) and Charnes Cooper and Rhodes (CCR) models of data envelopment analysis (DEA) as well as their respective bootstrap techniques. Multistage data collection was employed on 327 smallholders among 5 districts of Negeri Sembilan state. However, only 307 observations were used in computing inferential statistics, because the young-age category has been removed. The districts include Seremban, Tampin, Rembau, Kuala Pilah and Jempol. The results revealed that, the mean technical efficiency (TE) under variable returns to scale (VRS) and constant returns to scale (CRS) were 0.95, 0.97 0.96 and 0.45, 0.61, 0.33 for the all-age, matured-age and old-age crops respectively. The findings of the result also disclosed that naïve DEA has higher mean scores than bootstrapped-DEA, thus indicating the presence of bias in the former and absence of bias in the later. Also, the efficiency determinants under VRS and CRS as well as their respective bias-corrected (BC) efficiency scores were also analyzed using Tobit regression analysis against the 15 socio-demographic factors. It was found out that critical factors, common to all the age-categories, include educational level, tapping system and marital status under VRS and BC-VRS assumptions, while under CRS and BC-CRS assumptions include race, tapping system, marital status and farm’s distance. Therefore, education of smallholders should be given more attention to increase efficiency.  The study finally recommends that the traditional concept of computing efficiency or productivity of rubber and other perennial crops in an aggregated form should be complemented with the disaggregated form as this eliminates any bias and gives meaningful results. Improved methods such as bootstrapping should also be used as this only gives what is called bias-corrected efficiency scores. Regarding the determinants, factors such as education, tapping system and farm distance should be given more emphasis.


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