Two-Stage DEA: An Application to Major League Baseball
01 Apr 2003-Journal of Productivity Analysis (Kluwer Academic Publishers)-Vol. 19, Iss: 2, pp 227-249
TL;DR: In this article, the authors use DEA to model DMUs that produce in two stages, with output from the first stage becoming input to the second stage, and apply the model to Major League Baseball, demonstrating its advantages over a standard DEA model.
Abstract: We show how to use DEA to model DMUs that produce in two stages, with output from the first stage becoming input to the second stage. Our model allows for any orientation or scale assumption. We apply the model to Major League Baseball, demonstrating its advantages over a standard DEA model. Our model detects inefficiencies that standard DEA models miss, and it can allow for resource consumption that the standard DEA model counts towards inefficiency. Additionally, our model distinguishes inefficiency in the first stage from that in the second stage, allowing managers to target inefficient stages of the production process.
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TL;DR: In this paper, the authors developed a network data envelopment analysis (DEA) combined with life-cycle environmental impacts of products for eco-efficiency evaluation and found that pyrethroid pesticides are generally more eco-efficient than organophosphorus pesticides at the usage stage due to lower environmental impact.
55 citations
TL;DR: This study is the first to combine NSBM with DEA window analysis to give a dynamic evaluation of the environmental efficiency of Chinese regional industrial systems, indicating that the substantial efforts China has devoted to protecting the environment have yielded benefits.
Abstract: In recent years, environmental problems caused by industries in China have drawn increasing attention to both academics and policy makers. This paper assesses the environmental efficiency of Chinese regional industrial systems to come up with some recommendations to policy makers. First, we divided each Chinese regional industrial system into a production process and a pollutant treatment process. Then, we built a scientific input–intermediate–output index system by introducing a new network slacks-based model (NSBM) model. This study is the first to combine NSBM with DEA window analysis to give a dynamic evaluation of the environmental efficiency. This enables us to assess the environmental efficiency of Chinese regional industrial systems considering their internal structure as well as China’s policies concerning resource utilization and environmental protection. Hence, the overall efficiency of each regional industrial system is decomposed into production efficiency and pollutant treatment efficiency. Our empirical results suggest: (1) 66.7% of Chinese regional industrial systems are overall inefficient. 63.3 and of 66.7% Chinese regional industrial systems are inefficient in the production process and the pollutant treatment process, respectively. (2) The efficiency scores for the overall system and both processes are all larger in the eastern area of China than those of the central and western areas. (3) Correlation analysis indicates that SO2 generation intensity (SGI), solid waste generation intensity, COD discharge intensity, and SO2 discharge intensity have significantly negative impacts on the overall efficiency. (4) The overall inefficiency is mainly due to inefficiency of the pollutant treatment process for the majority of regional industrial systems. (5) In general, the overall efficiency was trending up from 2004 to 2010, indicating that the substantial efforts China has devoted to protecting the environment have yielded benefits.
54 citations
Additional excerpts
...We define an overall network production possibility set in terms of {xip}, {zd}, {yrP}, {xiT}, {yrT}, and {ub} as in the approach of Tone and Tsutsui (2010) and Liu et al....
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...As results, NDEA has been extensively applied to many areas, such as hotels (Moreno & Lozano, 2014; Sexton & Lewis, 2003), R&D departments (Liu & Lu, 2010), retail stores (Vaz, Camanho, & Guimarães, 2010), information technology (Chen & Zhu, 2004), insurance companies (Kao & Hwang, 2008),…...
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TL;DR: This work explores the contributions of capability and efficiency to effectiveness for Major League Baseball teams from 1901 through 2002, and measures team capability using offensive and defensive statistics and uses Network Data Envelopment Analysis to derive efficiency scores to capture managerial performance.
54 citations
Cites methods from "Two-Stage DEA: An Application to Ma..."
...Sexton and Lewis (2003) and Lewis and Sexton (2004a,b) extend the DEA methodology and use the extensions to measure the efficiency of MLB teams....
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TL;DR: In this paper, the authors examined the divisional efficiencies of multi-functional, vertically integrated companies seeking to optimize their overall management efficiency using a slacks-based measure (SBM) model.
Abstract: Prior to the 1990s, the electric power industry was highly regulated across the world. Under a liberalization policy to open markets and to grow competition commenced in the early 1990s, efficient management has become a necessity for companies in this industry. The current study examines the divisional efficiencies of multi-functional, vertically integrated companies seeking to optimize their overall management efficiency. For this purpose, divisional cost data are used as input into a slacks-based measure (SBM) model. This provides divisional efficiency indices based on slacks, as well as one for the larger firm-level management function. Further, given the important role of cost structure, we introduce a modified SBM, named the weighted SBM (WSBM), which directly incorporates division-specific weights into the objective function. Results reveal that the power generation divisions of the companies studied have significant influence on the overall cost, whereas the impact of the other four divisions – transmission, distribution, sales and general administrative – is limited.
54 citations
TL;DR: An optimisation model is introduced to define the technical and operative features of fleets, which maximises the success opportunities in terms of cost and time for multimodal chains against the road, and the most suitable fleets for the Sea Motorways Vigo-St.Nazaire and Gijon-Stazaire have been identified.
Abstract: This paper empirically studies the competitiveness of selected Short Sea Shipping (SSS) corridors by comparing the generalised costs of different alternatives to move cargo from Spain to several European destinations either by road or by using a SSS multimodal corridor In the context of fair and efficient intermodal competition promoted by European Union (EU) policies, our results show that, apart from the internalisation of the external costs and the existence of bottlenecks in transit times, the freight rates should be also considered as a critical factor in explaining why a particular SSS corridor is more/less competitive than its road alternative For that reason, we perform an econometric analysis to determine the main drivers of maritime prices in several SSS routes and quantify to what extent the instruments promoted by EU maritime policies – higher frequencies, fiercer competition or direct subsidies – favour real price reductions on them
53 citations
References
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TL;DR: In this paper, a non-parametric productivity measure that explicitly incorporates intermediate products is proposed, which is based on the Productivity Index (PII) and employs a nonparametric approach to measure productivity.
462 citations
TL;DR: A nonparametric, linear programming, frontier procedure for obtaining a measure of managerial efficiency that controls for exogenous features of the operating environment is introduced.
Abstract: The ability of a production unit to transform inputs into outputs is influenced by its technical efficiency and external operating environment. This paper introduces a nonparametric, linear programming, frontier procedure for obtaining a measure of managerial efficiency that controls for exogenous features of the operating environment. The approach also provides statistical tests of the effects of external conditions on the efficient use of each individual input (for an input oriented model) or for each individual output (for an output oriented model). The procedure is illustrated for a sample of nursing homes.
441 citations
"Two-Stage DEA: An Application to Ma..." refers methods in this paper
...Sexton and Silkman (2000) and Fried et al. (1999) present similar but distinct approaches to dealing with site characteristics in standard DEA models....
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TL;DR: In this article, the authors introduce a frontier model for productivity measurement that explicitly recognizes that some inputs are produced and consumed within the production technology, where intermediate inputs may also be final output.
Abstract: The purpose of this paper is to introduce a frontier model for productivity measurement that explicitly recognizes that some inputs are produced and consumed within the production technology. Here we differ from Koopmans (1951) by assuming that the intermediate inputs may also be final output. This assumption is in line with current international trade theory, where intermediate inputs are tradable. Our model consists of two production units that are interconnected in a network to form a production technology. The productivity measure employed here is the so-called Malmquist productivity index. This index consists of ratios of distance functions. Here these distance functions are defined on the network technology and they are computed using linear programming techniques.
439 citations
TL;DR: It is found that the decomposition of production into subproduction processes reduces the dimensions of problem specification, with the effect that a larger number of variables may be usefully included in the model.
Abstract: Agricultural production is often characterised by multiple inputs and multiple outputs to multiple production processes. Where an output from one process is used as an input to another, this output is called an intermediate product. This is a common situation when a farm produces both crops and livestock. The analysis of production efficiency is important for the evaluation of agricultural policy, but until recently, no methods have explicitly included intermediate products. This study applies a non-parametric technique of efficiency measurement which includes intermediate products. The data set is a sample of dairy farms drawn using a complex survey design. The use of non-parametric efficiency measurement and the subsequent application of bootstrapping and kernel density estimation to the results allow inferences to be drawn concerning the whole population from which the sample was drawn. We find that the decomposition of production into subproduction processes reduces the dimensions of problem specification, with the effect that a larger number of variables may be usefully included in the model.
145 citations