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Journal ArticleDOI

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.
Citations
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Journal ArticleDOI
01 Jan 2019
TL;DR: In this article, the authors employed a balanced panel of 20 pharmaceutical firms between 2012 and 2016, using a nonparametric technique (Data Envelopment Analysis) to analyze the firms' efficiency under the constant returns to scale (CRS) and variable returns-to-scale (VRS) assumptions.
Abstract: 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.

4 citations


Cites background or methods from "Two-Stage DEA: An Application to Ma..."

  • ...This technique has been explored in many fields including environmental, financial, security, power, and administration (Kwon and Lee, 2015; Tao et al, 2013; Tsolas and Charles, 2015; Wanke and Barros, 2014; Aristovnik et al, 2014; Fang and Li, 2015; Du et al, 2014; Lozano, 2015; Azadeh et al, 2015; Omrani, et al, 2015)....

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  • ...…explored in many fields including environmental, financial, security, power, and administration (Kwon and Lee, 2015; Tao et al, 2013; Tsolas and Charles, 2015; Wanke and Barros, 2014; Aristovnik et al, 2014; Fang and Li, 2015; Du et al, 2014; Lozano, 2015; Azadeh et al, 2015; Omrani, et al, 2015)....

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01 Jan 2006
TL;DR: In this paper, the authors examined the divisional efficiency of multi-functioned vertically integrated companies in order to optimize overall management efficiency, where cost data of each division is applied as input to the Slacks-Based Measure (SBM) model.
Abstract: Prior to the 1990s, the electric power industry was highly regulated in worldwide bases. Under a new policy of open markets and introducing competition into the industry, efficient management has become a requirement for these companies. The purpose of this study is to examine the divisional efficiency of multi-functioned vertically integrated companies in order to optimize overall management efficiency. For this purpose, cost data of each division is applied as input to the Slacks-Based Measure (SBM) model, which provides an efficiency index for each input factor based on slacks as well as to provide an efficiency index for overall management. Furthermore, considering the important role of cost share structure, this study introduces a slightly modified SBM, namely, the Weighted SBM (WSBM), which directly incorporates weight among inputs into the objective function. The results reveal that the generation division has a significant influence on overall cost, while the impact of the other four divisions is limited and reflects their cost shares.

4 citations


Cites methods from "Two-Stage DEA: An Application to Ma..."

  • ...While this study dealt with only one DMU, Sexton and Lewis [16] and Lewis and Sexton [17] focused on divisional efficiency and overall efficiency of several DMUs (Measure League Baseball teams) using two-stage DEA and Network DEA models....

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DissertationDOI
24 Sep 2013
TL;DR: In this paper, the authors present a trabajo in the observación of the real reality in the US of a conjunto of empresas that in a momento determinado de tiempo muestran a situation of crisis.
Abstract: [ES] Este trabajo tiene su punto de partida en la observacion de la realidad en los Estados Unidos de un conjunto de empresas que en un momento determinado de tiempo muestran una situacion de crisis. En particular, se observo que en el ano 1993, un numero de 753 empresas presentan algunos de los sintomas, mas o menos graves, de una situacion de inestabilidad a traves de la identificacion de algunos de los indicadores de crisis. Una parte de la situacion analizada implicaria, desde el punto de vista de la teoria financiera, poner en duda la continuidad de la empresa en ese momento. Sin embargo, durante el periodo analizado, todas las empresas, excepto dos, estaban presentes en el mercado despues de 10 anos. Este hecho proporciona pruebas suficientes de la existencia de una alta tasa de supervivencia, a pesar de haber sufrido una grave crisis. Sin embargo, la evolucion de este conjunto de empresas en todo el periodo de 10 anos es diferente. Algunas empresas logran resolver su situacion de crisis, mientras que otras siguen un patron degenerativo, similar a una enfermedad con efectos degenerativos. Es interesante el hecho de que un porcentaje considerable de las empresas parece mantenerse en la linea de limite entre la crisis y la estabilidad, con periodos de salud y enfermedad, de modo que se podria afirmar que hay una "especie" de la empresa para la que sobrevivir en crisis constituye su forma habitual de existir. Los argumentos anteriores incitar a proponer las siguientes preguntas: - ?Que patrones caracterizan a las empresas que se enfrentan a una situacion de crisis en un momento determinado de tiempo, y que factores pueden determinar el proceso evolutivo? - ?Que tipo de estrategias ponen en practica las empresas en una situacion de crisis para resolver o mitigar esta situacion? Siguiendo estas cuestiones, el presente trabajo esta estructurado en siete capitulos y consiste principalmente de dos partes. En la primera parte, se analiza si la evolucion de una situacion de crisis depende de las caracteristicas iniciales de la misma o si tiene que ver con determinadas caracteristicas de las empresas, y los factores determinantes de los resultados finales. Sin embargo, es de destacar que el proposito de este estudio no se centra en la prediccion. Mas bien se centra en analizar los factores y los patrones que pueden determinar el proceso de recuperacion. El capitulo I se ofrece el marco teorico de la primera parte de esta investigacion y expone el modelo de recuperacion y los diferentes factores que influyen en el resultado final de la crisis. El Capitulo II se dedica a un analisis descriptivo de la muestra de las empresas que presenten una situacion de crisis y se representan en un mapa basandose en los sintomas de crisis ampliamente aceptados en la literatura, diferenciando entre variables de reaccion y variables de recuperacion. El objetivo es analizar las similitudes y diferencias entre las caracteristicas estructurales de una muestra de empresas por medio de los cambios en su posicion de crisis dada por: i) situacion economica y financiera inicial; ii) capacidad de reaccion y iii) la fuerza de la situacion final. Es en el Capitulo III donde las diferencias o similitudes existentes entre los dos grupos de empresas son empiricamente estudiadas a fin de determinar las asociaciones entre las variables y el resultado final. Consideramos que la recuperacion (estado Post-distress) debe evaluar no solo si una empresa logra resolver su estado critico sino tambien la calidad de la posicion final, considerando el riesgo de volver a entrar en distress. Podemos crear un indicador del bienestar que discrimina las empresas con buen desempeno, que solo consiguen salir de la crisis de las empresas con mejor desempeno, las cuales se posicionan en un nuevo escenario de bienestar, minimizando la probabilidad de recaer en una situacion de dificultad. La segunda parte de este estudio se inicia en el capitulo IV. Aunque muchos estudios se han centrado en la relacion entre comportamiento economico y financiero de las empresas y sus acciones de responsabilidad social corporativa (RSC), son escasos los trabajos que analizan las acciones de responsabilidad social de las empresas que se enfrentan a una crisis. Los gerentes de las empresas que en cierto momento del tiempo se enfrentan a una situacion de distress, podrian estar incentivados a invertir en acciones de responsabilidad social entre sus estrategias de recuperacion. Estas ultimas pueden ser utilizadas para complementar estrategias de eficiencia orientados a obtener beneficios asociados con las inversiones, para reducir los gastos en determinadas acciones con el fin de desarrollar las estrategias de reduccion de costes, o para crear expectativas favorables que podrian mitigar los resultados debiles de sus indicadores financieros. Muchos estudios relacionados con la RSC y los resultados economicos y financieros de las empresas han sido prueba de la asociacion positiva entre las acciones de RSC y los resultados financieros, pero otros han encontrado pruebas de que esta relacion es negativa o neutral. En el capitulo V analizamos si las empresas que se enfrentan a una situacion de dificultades financieras incorporan la inversion en comportamientos responsables entre sus estrategias como un mecanismo para crear expectativas favorables que mitigan la debilitada imagen de algunos indicadores financieros. En el capitulo VI se analizan los patrones de comportamiento responsable con el fin de determinar las marcas de identidad de las diferentes empresas y explorar si los perfiles de su conducta pueden estar asociados a la existencia o no de una situacion de crisis. Por ultimo, el Capitulo VII estudia si una reconocida situacion de crisis financiera tiene un impacto sobre las estrategias de RSC y modifica la actitud de un conjunto de empresas hacia un comportamiento mas responsable. Se utiliza la informacion de RSC de las empresas sanas y con problemas para evidenciar los cambios en la actitud de RSC inducidos por la posicion de distress y se determinan las variables mas relevantes del comportamiento responsable, una vez identificados los sintomas de crisis, para la evaluacion general, asi como para la valoracion de cada dimension de RSC, teniendo en cuenta el sector donde las empresas desarrollan su actividad normal.

4 citations

Journal ArticleDOI
TL;DR: The indexes of efficiency, previously generated for attack and defence, will be implemented as parameters in the second-stage DEA analysis in accordance with the initial aim of this paper, to present new results as the outcome of the comprehensive approach to both inseparable aspects of the football.
Abstract: Original scientific paper Using the nonparametric variable output-oriented DEA (Data Envelopment Analysis) model, this paper analyses technical efficiency of the observed national football team in the qualifications for 2010 FIFA World Cup. If DEA model has a two stage structure, the first stage uses inputs to generate outputs that then became the inputs to the second stage. The indexes of efficiency, previously generated for attack and defence, will be implemented as parameters in the second-stage DEA analysis in accordance with the initial aim of this paper, to present new results as the outcome of the comprehensive approach to both inseparable aspects of the football. This theoretical approach is structured as follows: the football teams are defined as DMU (DecisionMaking Units), then, the methodology is established, specifically, the stages of range and objectives, analysis of procedure and variables, and the description of the theoretical analysis used.

4 citations

Book ChapterDOI
01 Jan 2012
TL;DR: In this article, a case study focused on lightweighting vehicles through material selection is presented, where an approach using data envelopment analysis is proposed for comparing alternatives across multiple sustainability criteria.
Abstract: Designing automobiles to support sustainability requires assessment of life cycle economic, environmental, and social impacts. Environmental and economic performance is increasingly evaluated with life cycle assessment and life cycle cost analysis. Analytical methods are needed to assess the associated life cycle social impacts. Additional sustainability criteria will make it more difficult to compare alternatives and select the “best” option. To enhance the evaluation of social impacts, a method for considering life cycle worker health impacts is proposed. To reduce reliance on subjective weighting, an approach using data envelopment analysis is proposed for comparing alternatives across multiple sustainability criteria. Conceptual approaches for both are presented as part of a case study focused on lightweighting vehicles through material selection.

4 citations

References
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Journal ArticleDOI
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

Journal ArticleDOI
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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Posted Content
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

Journal ArticleDOI
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

Book
01 Jan 1965

106 citations