efficiency frontier
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Author(s):  
Renata G. de Oliveira Fontan ◽  
Rodrigo Alvarenga Rosa ◽  
Adonai José Lacruz

ABSTRACT Objective: the objective is to compare the relative efficiency of the railways specialized in transporting iron ore (MFe) and pellets (PLMFe), which are part of the assets of mining companies and pellet plants considering the 2016 scenario. Methods: the methods used were the data envelopment analysis (DEA) technique, with the application of the output-oriented constant returns scale (CRS) model; the initial combinatorial multicriteria method for choosing the input variables; and Tobit regression as a validation strategy for the DEA model. Results: of the twelve railways evaluated, three railways were identified as efficient: Estrada de Ferro Carajás, Fortescue, and Mount Newman. Conclusions: the applied model was considered a good method to evaluate the efficiency of railways specialized in transporting MFe and PLMFe, as it determined the efficiency of each railway, suggesting the necessary increase in the output variable or adjustments in the input variables so that the railways reach the efficiency frontier. With that, companies can use the results of this study to guide future improvements to make their railways more efficient or maintain them on the frontier of efficiency.


Author(s):  
Renata G. de Oliveira Fontan ◽  
Rodrigo Alvarenga Rosa ◽  
Adonai José Lacruz

ABSTRACT Objective: the objective is to compare the relative efficiency of the railways specialized in transporting iron ore (MFe) and pellets (PLMFe), which are part of the assets of mining companies and pellet plants considering the 2016 scenario. Methods: the methods used were the data envelopment analysis (DEA) technique, with the application of the output-oriented constant returns scale (CRS) model; the initial combinatorial multicriteria method for choosing the input variables; and Tobit regression as a validation strategy for the DEA model. Results: of the twelve railways evaluated, three railways were identified as efficient: Estrada de Ferro Carajás, Fortescue, and Mount Newman. Conclusions: the applied model was considered a good method to evaluate the efficiency of railways specialized in transporting MFe and PLMFe, as it determined the efficiency of each railway, suggesting the necessary increase in the output variable or adjustments in the input variables so that the railways reach the efficiency frontier. With that, companies can use the results of this study to guide future improvements to make their railways more efficient or maintain them on the frontier of efficiency.


Author(s):  
Margit Sommersguter-Reichmann

AbstractScientists are increasingly considering quality in nonparametric frontier efficiency studies in health care. There are many ways to include quality in efficiency analyses. These approaches differ, among other things, in the underlying assumptions about the influence of quality on the attainable efficiency frontier and the distribution of inefficiency scores. The aim is to provide an overview of how scholars have taken quality into account in nonparametric frontier efficiency studies and, at the same time, to address the underlying assumptions on the relationship between efficiency and quality. To this end, we categorized empirical efficiency studies according to the methodological approaches and quality dimensions and collected the quality indicators used. We performed a Web of Science search for studies published in journals covered by the Science Citation Index Expanded, the Social Sciences Citation Index, and the Emerging Sources Citation Index between 1980 and 2020. Of the 126 studies covered in this review, 78 are one-stage studies that incorporate quality directly into the efficiency model and thus assume that quality impacts the attainable efficiency frontier. Forty-four articles are two-stage studies that consider quality in the first and the second stage or the second stage only. Four studies do not assume a priori a specific association between efficiency and quality. Instead, they test for this relationship empirically. Outcome quality is by far the most frequently incorporated quality dimension. While most studies consider structural quality as an environmental variable in the second stage, they include outcome quality predominantly directly in the efficiency model. Process quality is less common.


Author(s):  
Ricardo Ocaña-Riola ◽  
Carmen Pérez-Romero ◽  
Mª Isabel Ortega-Díaz ◽  
José Jesús Martín-Martín

Background: This article proposes a methodological innovation in health economics for the second stage analysis of technical efficiency in hospitals. It investigates the relationship between the installed capacity in regions and hospitals and their ownership structure. Methods: A multilevel zero-one inflated beta regression model is employed to model pure technical efficiency more adequately than other models frequently used in econometrics. Results: Compared to publicly managed hospitals, the mean efficiency index of hospitals with public-private partnership (PPP) formulas was 4.27-fold. This figure was 1.90-fold for private hospitals. Concerning the efficiency frontier, the odds ratio (OR) of PPP models vs. public hospitals was 42.06. The OR of private hospitals vs. public hospitals was 8.17. A one standard deviation increase in the percentage of beds in intensive care units increases the odds of being situated on the efficiency frontier by 50%. Conclusions: The proportion of hospital beds in intensive care units relates to a higher chance of being on the efficiency frontier. Hospital ownership structure is related to the mean efficiency index of Spanish National Health Service hospitals, as well as the odds of being situated on the efficiency frontier.


2021 ◽  
Vol 3 (5) ◽  
Author(s):  
Matthew Benchener ◽  
Lingfeng Li

Abstract In this study, we introduce Efficiency Frontier, an economic assessment framework for business operations. The proposed framework emphasizes efficiency and sustainability. It aims to help organizations translate a complex metric system into a value index, conduct performance evaluation, and determine efficient resource planning strategies. Unlike the traditional methods that majorly focus on the achievement of performance targets, the proposed framework also accounts for the amount of resource that is invested in the achievement, which encourages managers to implement sustainable strategies that aim for long-term success. To validate the new framework, we systematically study the case of the City of Chicago’s 311 contact center with a base case analysis and a sensitivity analysis. In the base case, an Efficiency Frontier architected by a set of efficient solutions from 2013 to 2016 is used to identify outperforming scenarios given resource constraints. In the sensitivity analysis, we demonstrate the application of Efficiency Frontier in determining optimal resource planning strategies in conservative, moderate, and aggressive business investment scenarios. The base case Efficiency Frontier reveals that the marginal return on investment in improving the performance may diminish as investment increases. The sensitivity study suggests that optimal resource planning strategies should be adjusted according to value propositions. This work builds a framework for business leaders to economically assess their operational decision-making. Article highlights Efficient strategies can be identified by exploring the maximum value increase per unit of resource given cost scenarios The fund of a strategy should be reduced when the marginal return of the strategy begins to diminish. The framework’s ability to suggest cost-saving strategies is especially informative in resource-limited settings.


2021 ◽  
Vol 7 (1) ◽  
pp. 22
Author(s):  
Bello Lawal ◽  
Mohammed Nuhu

This exploratory paper examines the concept of diversity as a dynamic of board effectiveness. The study argues that diversity hardly works without putting in place systems and programmes that promote social inclusion, and, as such, research on board diversity must account for this element in building empirical frameworks and model specifications. The study finds that a great majority of previous studies have ignored this variable of significant importance and, in some instances, conflated it with diversity itself. This represents a material flaw that needs to be addressed. This paper offers guidance on how to measure and account for social inclusion and integration in board diversity research. Finally, a portfolio efficiency frontier model is proposed as a mechanism for differentiating between corporations with efficient board diversity and those that are tokenism based.


Energies ◽  
2021 ◽  
Vol 14 (3) ◽  
pp. 742
Author(s):  
Grzegorz Ślusarz ◽  
Barbara Gołębiewska ◽  
Marek Cierpiał-Wolan ◽  
Jarosław Gołębiewski ◽  
Dariusz Twaróg ◽  
...  

Energy obtained from renewable sources is an important element of the sustainable development strategy of the European Union and its member states. The aim of this research is, therefore, to assess the potential and use of renewable energy sources and their effectiveness from the regional perspective in Poland. The research covered the years 2012 and 2018. The diversification of production and potential of renewable energy sources was defined on the basis of biogas and biomass. Calculations made using the data envelopment analysis (DEA) method showed that, in 2012, only three voivodeships achieved the highest efficiency in terms of the use of biogas and biomass resources; in 2018, this number increased to four. Comparing the effective units in 2012 and 2018, it can be seen that their efficiency frontier moved upwards by 56% in terms of biogas and 21% in terms of to biomass. Despite a large relative increase in the production of heat from biogas by 99% compared to the production of heat from biomass by 38%, the efficiency frontier for biogas did not change considerably. It was found that the resources of solid biomass are used far more intensively than the resources of biogas. However, in the case of biogas, a significant increase in the utilization of the production potential was observed: from 3.3% in 2012 to 6.4% in 2018, whereas in the same years, the utilization of solid biomass production potential remained at the same level (15.3% in 2012, 15.4% in 2018). It was also observed that, at the level of voivodeships, the utilization of biogas and biomass production potential is negatively correlated with the size of this potential. The combined potential of solid biomass and biogas can cover the demand of each of the studied regions in Poland in terms of thermal energy. The coverage ranges from 104% to 1402%. The results show that when comparing biomass and biogas, the production of both electricity and heat was dominated by solid biomass. Its high share occurred especially in voivodeships characterized by a high share of forest area and a low potential for biogas production (Lubuskie Voivodeship, Zachodniopomorskie Voivodeship).


2021 ◽  
Vol 17 (1) ◽  
Author(s):  
Shawnn Melicio Coutinho ◽  
Ch. V. V. S. N. V Prasad ◽  
Rohit Prabhudesai

Purpose-With increased demand and restricted healthcare resources, it becomes important to take a step back and evaluate the efficiency of healthcare delivery. The present study aims to evaluate the health system efficiency of India by benchmarking it against its peers in BRICS countries and against OECD countries. Design/Methodology/Approach: The input and output variables required for measuring the efficiency of healthcare system were identified. A Data Envelopment Analysis (DEA) approach was used and efficiency frontier identified with the rankings of the BRICS and OECD countries. India is thus benchmarked against its peers (BRICS) and against OECD countries. Finding: India was found to operate at the efficiency frontier along with China, Russia, Brazil, and South Africa, however it ranked fourth. When benchmarked against OECD countries, India operates on the efficiency frontier along with Canada, Greece, Japan, Korea, Mexico, Spain, Sweden, Switzerland, Turkey, Great Britain, Chile and Israel. Countries like Germany, United States of America, Czech Republic, Slovakia and Lithuania operate at a lower healthcare efficiency and need to use their resources wisely. Practical/Research Implications: Developing countries like India can look to improve its healthcare system delivery by replicating best practices of healthcare systems from its peers and the top 10 OECD countries. Majority of the OECD countries in the top 10 have implemented universal health coverage, have higher physician and nurse density and higher hospital bed ratios. They are inclined towards branded drugs vis-à-vis generics and have follow evidence based medicine. From a theoretical perspective, it adds to the body of literature of DEA and health system efficiency. Originality/Value: This is a pioneer study that benchmarks India against its peers and against OECD countries drawing unique insights about healthcare efficiency


Author(s):  
Ethel Ansaah Addae ◽  
Nelson Amowini

This paper presents the assessment of improvement in water use efficiency in sub-Sahara Africa based on the Malmquist Productivity Index (MPI). The study was conducted in 28 countries in sub-Sahara Africa from 2007 to 2017. Two test cases comprising data with water stress as undesired output, and without water stress as undesired output were analyzed to determine their level of impact on the improvement of water use efficiency. Again the technical efficiency as well as technological efficiency change were also examined. The overall mean outcome of the results regarding the test case of the MPI with the inclusion of water stress was 0.969 which is higher than the values recorded from 2012-2016. Comparing the two results, it was observed that the mean MPI estimates without water stress are much higher than that of the average MPI with the inclusion of water stress. This means that without the inclusion of undesirable factors such as water stress, the MPI scores could be overestimated. In terms of the catch-up effect, all sampled countries were technically efficient except Angola, Burundi, Chad, Madagascar, Mauritania, Mozambique, Sierra Leone and Togo that could not meet the efficiency frontier of 1.00. With the technological efficiency change, the results indicated that none of the sampled countries was able to reach the efficiency frontier. Policy recommendations based on the results are provided.


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