Technical Efficiency of Cooperative and Non-Cooperative Dairies in Poland: Toward the First Link of the Supply Chain

Several studies conducted in various countries have addressed the technical efficiency of dairies. However, there is a paucity of research on the technical efficiency of dairies in Poland, particularly in relation to their legal form (i.e., cooperatives vs. non-cooperatives). The existing literature also does not provide insights into the technical efficiency of these entities with respect to different regions’ milk production capacity. Therefore, this paper aims to: (1) evaluate and compare the technical efficiency of cooperative and non-cooperative dairies in Poland, and (2) examine dairies’ technical efficiency due to spatial disparities in milk production potential. We use data envelopment analysis (DEA) to investigate the technical efficiency of 108 dairies in Poland for the year 2019. The milk production capacity of provinces is examined by applying the zero unitarization method. The results show that when assuming constant returns to scale (CRS), dairy cooperatives are less technically efficient than non-cooperatives, whereas when assuming variable returns to scale (VRS), these differences are not statistically significant. For inefficient dairies, we observe the greatest potential for improvement in labor costs and depreciation. Both cooperatives and non-cooperatives operate mostly under decreasing returns to scale. Thus, the potential for enhancing the technical efficiency of dairies through the consolidation process seems to be exploited. Our findings reveal that the technical efficiency of dairies in Poland is not differentiated by regional milk production potential.

The Productive Efficiency of Science and Technology Worldwide: A Frontier Analysis

We are interested in how codified knowledge is produced around the globe (which inputs are used to produce scientific articles and patented inventions) and the efficiency of the process (how do the best performers produce more with the same inputs or produce the same with less inputs). Using a Data Envelopment Analysis (DEA) efficiency frontier approach, we aim to determine which countries are more efficient at producing codified knowledge. We proxy knowledge production by publications and patents, obtained through human (researchers) and non-human (R&D expenditure) resources. We built a 15-year database with more than 800 observations of these and other variables. Our findings enable us to distinguish efficiency by country, geographical region, and income area. We run four different specifications and correlate the results with partial productivity indexes seeking consistency. Under constant returns to scale, the most traditional producers of knowledge are not fully efficient. Instead, small countries with limited resources appear to be efficient. When we add environmental conditions, both sets of countries are efficient producers of knowledge outputs. High-income regions, on the one hand, and East Asia, North America, and Europe and Central Asia, on the other, are the most efficient regions at producing knowledge.

Mathematical Model of MMT with Profit Return under Monopolistic Competition

Even under constant returns to scale technology there is a positive profit return if the goods are produced in monopolistic competition. By a two-periods overlapping generations (OLG) model with production in monopolistic competition under constant returns to scale in which the economy grows by technological progress and the older generation consumers receive the profits, we consider the problem of budget deficit. We show that the budget deficit equals the difference between the net savings of the younger generation consumers excluding the profits received in the future and that of the older generation consumers in each of the following cases. Also, the following results will be proved. 1) A budget deficit is necessary to realize full employment with constant price when the economy grows. 2) If the budget deficit exceeds the level necessary and sufficient to maintain full employment in a growing economy with constant price, inflation will occur. A stable budget deficit is necessary to prevent further inflation. 3) If the budget deficit is insufficient to maintain full employment, a recession with involuntary unemployment occurs. We can overcome a recession and restore full employment making a budget deficit larger than the one necessary and sufficient to maintain full employment without a recession. Since we can maintain full employment by constant budget deficits, we should not offset the deficit created for overcoming the recession by budget surpluses.

Returns to Scale, Productivity Measurement, and Trends in U.S. Manufacturing Misallocation

Aggregate productivity suffers when workers and machines are not matched with their most productive uses. This paper builds a model that features industry-specific markups, industry-specific returns to scale, and establishment-specific distortions, and uses it to measure the extent of this misallocation in the economy. Applying the model to restricted U.S. Census microdata on the manufacturing sector suggests that misallocation declined by 13% between 1982 and 2007. The finding of declining misallocation starkly contrasts with the 29% increase implied by the widely used assumptions that all establishments charge the same markup and have constant returns to scale.

Efficiency of Micro and Small Enterprises in Ethiopia: Evidence from Data Envelope Analysis Model

This study measures the technical and scale efficiency of Micro and Small Enterprises (MSEs) and input slacks using Data Envelop Analysis (DEA) model and identifies the determinants of efficiencies of MSEs by employing ordinary least square (OLS) econometrics model. A sample of 375 randomly selected MESs are included in the study. The study found that the average technical and scale efficiency of MSEs are relatively low; technical efficiency averaged at 30 percent and 38.4 percent under constant returns to scale (CRS) and variable returns to scale (VRS) assumptions, respectively. Besides, the overall average scale efficiency score of MSEs was estimated at 77.8 percent. The highest mean technical and scale efficiencies were registered in the construction (71.8 percent) and manufacturing (85.7 percent) sectors, respectively. Whereas, the lowest technical and scale efficiency goes to urban agriculture sector and service sector, with 38.9 percent and 67.2 percent, respectively. The level of inputs, enterprise age and sector, human capital, labor productivity variables significantly affect relative technical efficiency level of MSEs with different directions while variables such as start-up capital, gender of the enterprise manager and availability of support from the government identified statistically not significant in determining the MSEs’ technical efficiency.

Health system efficiency in OECD countries: dynamic network DEA approach

Background In recent years, measuring and evaluating the efficiency of health systems has been explored in the context of seeking resources to ensure the sustainability of ‘countries’ health and social systems and addressing various crises in the health sector. The study aims to quantify and compare the efficiency of OECD health systems in 2000, 2008, and 2016. The contribution to research in the field of efficiency in the healthcare system can be seen in the application of Dynamic Network Data Envelopment Analysis (DNDEA), which help us to analyse not only the overall efficiency of the healthcare system but analyse the overall efficiency as the result of the efficiencies of individual interconnected areas (public and medical care area). By applying the DNDEA model, we can realise the analysis not only within one year, but we can find out if the measures and improvements taken in the healthcare sector have a positive impact on its efficiency in a later period (eight-year interval). Methods The analysis focuses on assessing the efficiency of the health systems of OECD countries over three periods: 2000, 2008, and 2016. Data for this study were derived from the existing OECD database, which provides aggregated data on OECD countries on a comparable basis. In this way, it was possible to compare different countries whose national health statistics may have their characteristics. The input-oriented Dynamic Network Data Envelopment Analysis model was used for data processing. The efficiency of OECD health systems has been analysed and evaluated comprehensively and also separately in two divisions: public health sub-division and medical care sub-division. The analysis combines the application of conventional and unconventional methods of measuring efficiency in the health sector. Results The results for the public health sub-division, medical care sub-division and overall health system for OECD countries under the assumption of constant returns to scale indicate that the average overall efficiency was 0.8801 in 2000, 0.8807 in 2008 and 0.8472 in 2016. The results of the input-oriented model with the assumption of constant returns to scale point to the overall average efficiency of health systems at the level of 0.8693 during the period. According to the Malmquist Index results, the OECD countries improved the efficiency over the years, with performance improvements of 19% in the public health division and 8% in the medical care division. Conclusions The results of the study are beneficial for health policymakers to assess and compare health systems in countries and to develop strategic national and regional health plans. Similarly, the result will support the development of international benchmarks in this area. The issue of health efficiency is an intriguing one that could be usefully explored in further research. A greater focus on combining non-parametric and parametric models could produce interesting findings for further research. The consistency in the publication and updating of the data on health statistics would help us establish a greater degree of accuracy.

Efficiency in Utilization of the Resources Allocated to Lower Level Health Facilities in Uganda: a Case Study of Health Centre IVs

Background: Everyone has a right to quality life with good health of the household and, thus, health sector financing should be a top priority because when the population is healthy, it is very productive and wealthy. In Uganda, Health Centre IVs (HCIVs) created under Uganda National Minimum Health Care Package provide curative, prevention and promotion services. The efficiency of these HCIVs is as critical as people’s health and this paper measures efficiency in utilization of resources allocated to them.Methods: The study used Hospital and HCIV Census data for 2014 and health sector data for FY2015/16 reported by MOH in the Annual Health Sector Performance Report. STATA software was used to perform Data Envelopment Analysis for a preferred model was out-put oriented that optimizes variable returns to scale. In this way, efficiency scores for every HCIV were calculated. Also, a Tobit regression model was run to estimate the factors contributing to the adjusted inefficiency scores for HCIVs.Results: Overall, 7 HCIVs (23.3%) were operating under constant returns to scale, implying that they were efficient (both pure technical and scale efficiency) while the 19 (63.3%) were operating under increasing returns to scale, implying that their health service outputs would increase by a greater proportion compared to any proportionate increase in health services if more inputs were added in the facility. Four HCIVs (13.3%) were operating at decreasing returns to scale meaning an additional input to the HCIVs would produce a less proportional change of outputs. The study identified catchment population, average length of stay, bed occupancy rate, and outpatient department visits as a proportion of inpatient days as the main factors of efficiency among HCIVs.Conclusions: This study has shown how Data Envelope Analysis methods can be applied at the HCIV level of the health system to gain an insight into variation in efficiency across health centers using routinely available data. And, with the majority of HCIVs operating at increasing returns to scale, it showed that there is a need to increase inputs like staff, medicines and beds to achieve the desired optimal scale in case of constant returns to scale.

Fiscal Policy as a Solution to Involuntary Unemployment

We show the existence of involuntary unemployment based on consumers’ utility maximization and firms’ profit maximization behavior under monopolistic competition with increasing, decreasing or constant returns to scale technology using a three-periods overlapping generations (OLG) model with a childhood period as well as younger and older periods, and pay-as-you-go pension for the older generation, and we analyze the effects of fiscal policy financed by tax and budget deficit (or seigniorage) to achieve full-employment under a situation with involuntary unemployment. Under constant prices we show the following results. 1) If the realization of full employment will increase consumers’ disposable income, in order to achieve full-employment from a state with involuntary unemployment, we need budget deficit (Proposition 1). 2) If the full-employment state has been achieved, we need balanced budget to maintain full-employment (Proposition 2). We also consider fiscal policy under inflation or deflation. Additionally, we present a game-theoretic interpretation of involuntary unemployment and full-employment. We also argue that if full employment should be achieved in equilibrium, the instability of equilibrium can be considered to be the cause of involuntary unemployment.

Assessing the efficiency of the Covid-19 control measures and public health policy in OECD countries from cultural perspectives

PurposeTo identify sources of the success and failure of COVID-19 control measures and develop best-practice public health policy in mitigating the spread of COVID-19, this paper aims to evaluate the efficiency of various combinations of government COVID-19 control measures among OECD countries. This paper also identifies which factors critically influence the efficiency of COVID-19 control measures.Design/methodology/approachThis paper employed two-stage network SBM (slacks-based measure of efficiency) models with variable returns-to-scale and constant returns-to-scale, respectively, among various forms of data envelopment analysis (DEA) models. As a post hoc analysis, the authors used Tobit regression for examining the causal relationship between a nation's cultural dimensions and its COVID-19 control measure's efficiency scores.FindingsThe authors found that the pervasive less individualistic and higher uncertainty avoiding culture positively influenced the efficient control of COVID-19 outbreaks since such a culture helped the government impose its mandatory COVID-19 control measures without people's strong resistance to those measures.Originality/valueMany public health policymakers are wondering why COVID-19 control measures are not effective in coping with the COVID-19 outbreaks. This paper helps the government find the most efficient combination of COVID-19 controls measures for curbing the spread of the stubborn coronavirus. This paper is one of the first attempts to identify pandemic risk mitigation factors from a cultural perspective.

Very Simple Mathematical Model of MMT (Modern Monetary Theory)

The purpose of this paper is to provide a concise theoretical and mathematical foundation for the major parts of the debate in the recently discussed school of economics called Modern Monetary Theory (MMT), while maintaining the basics of the neoclassical microeconomic framework, such as utility maximization of consumers using budget constraints and utility functions, and equilibrium of demand and supply of goods under perfect competition with constant returns to scale technology. By a two-periods overlapping generations (OLG) model in which the economy grows by technological progress, we will show that: 1) We need a budget deficit to achieve full employment with constant price when the economy grows by technological progress. This budget deficit should not be offset by future surplus; 2) A budget deficit that exceeds the level necessary to maintain full employment in a growing economy with constant price will cause inflation. A stable budget deficit is required to prevent further inflation; 3) A budget deficit that is insufficient to maintain full employment will cause a recession with involuntary unemployment. A budget deficit larger than the one necessary and sufficient to maintain full employment without a recession can overcome a recession caused by insufficient budget deficit and restore full employment. The deficit created to overcome the recession should not be offset by subsequent surpluses, since full employment can then be maintained through constant budget deficits.