Showing papers on "Data envelopment analysis published in 2009"
TL;DR: A sketch of some of the major research thrusts in data envelopment analysis (DEA) over the three decades since the appearance of the seminal work of Charnes et al. is provided.
1,390 citations
TL;DR: A slacks-based network DEA model is proposed, called Network SBM, that can deal with intermediate products formally and evaluate divisional efficiencies along with the overall efficiency of decision making units (DMUs).
954 citations
TL;DR: Examination of second stage DEA efficiency analyses, within the context of a censoring data generating process (DGP) and a fractional data DGP, when efficiency scores are treated as descriptive measures of the relative performance of units in the sample suggests Tobit estimation in this situation is inappropriate.
705 citations
TL;DR: A comprehensive review of 196 studies which employ operational research (O.R.) and artificial intelligence (A.I.) techniques in the assessment of bank performance, including numerous applications of data envelopment analysis, which is the most widely applied O.R. technique in the field.
Abstract: This paper presents a comprehensive review of 179 studies which employ operational research (O.R.) and Artificial Intelligence (A.I.) techniques in the assessment of bank performance. We first discuss numerous applications of data envelopment analysis which is the most widely applied O.R. technique in the field. Then we discuss applications of other techniques such as neural networks, support vector machines, and multicriteria decision aid that have also been used in recent years, in bank failure prediction studies and the assessment of bank creditworthiness and underperformance.
595 citations
TL;DR: The current paper develops an additive efficiency decomposition approach wherein the overall efficiency is expressed as a (weighted) sum of the efficiencies of the individual stages and can be applied under both CRS and variable returns to scale (VRS) assumptions.
563 citations
TL;DR: This paper builds a relational network DEA model, taking into account the interrelationship of the processes within the system, to measure the efficiency of the system and those of the process at the same time, and decomposes the system efficiency into the sum of the inefficiency slacks of its component processes connected in parallel.
442 citations
TL;DR: In this article, the authors investigated the efficiency of Malaysian banking sector around the Asian financial crisis 1997 by using the Data Envelopment Analysis (DEA) approach and found that the decline in technical efficiency is more abrupt under the intermediation approach relative to the value added approach and operating approach.
330 citations
TL;DR: This article attempts to do an objective evaluation of the performance of decision making units (DMUs) by proposing six DEA-based performance evaluation models based on a research sample of the Chinese coal-fired power plants and finding not only contributes for the performance measurement methodology, but also has policy implications for the Chinese power sector.
313 citations
TL;DR: A parallel DEA model is developed which takes the operation of individual components into account in calculating the efficiency of the system, and the efficiency calculated is smaller than that calculated from the conventional DEA model.
263 citations
TL;DR: A hybrid model using data envelopment analysis, decision trees (DT) and neural networks (NNs) to assess supplier performance and yields a favorable classification and prediction accuracy rate.
Abstract: As the most important responsibility of purchasing management, the problem of vendor evaluation and selection has always received a great deal of attention from practitioners and researchers. This management decision is a challenge due to the complexity and various criteria involved. This paper presents a hybrid model using data envelopment analysis (DEA), decision trees (DT) and neural networks (NNs) to assess supplier performance. The model consists of two modules: Module 1 applies DEA and classifies suppliers into efficient and inefficient clusters based on the resulting efficiency scores. Module 2 utilizes firm performance-related data to train DT, NNs model and apply the trained decision tree model to new suppliers. Our results yield a favorable classification and prediction accuracy rate.
247 citations
TL;DR: In this article, a non-parametric method i.e. Data Envelopment Analysis (DEA) technique was subjected to data of paddy producers in Punjab state (India).
TL;DR: In this article, a modified variable returns to scale (VRS) model was proposed to evaluate the performance of the countries in Olympic games, where each DMU is viewed as a competitor via non-cooperative game and a multiplier bundle is determined that optimizes the efficiency score for that DMU.
Abstract: A number of studies have used data envelopment analysis (DEA) to evaluate the performance of the countries in Olympic games. While competition exists among the countries in Olympic games/rankings, all these DEA studies do not model competition among peer decision making units (DMUs) or countries. These DEA studies find a set of weights/multipliers that keep the efficiency scores of all DMUs at or below unity. Although cross efficiency goes a further step by providing an efficiency measure in terms of the best multiplier bundle for the unit and all the other DMUs, it is not always unique. This paper presents a new and modified DEA game cross-efficiency model where each DMU is viewed as a competitor via non-cooperative game. For each competing DMU, a multiplier bundle is determined that optimizes the efficiency score for that DMU, with the additional constraint that the resulting score should be at or above that DMU 's estimated best performance. The problem, of course, arises that we will not know this best performance score for the DMU under evaluation until the best performances of all other DMUs are known. To combat this “chicken and egg” phenomenon, an iterative approach leading to the Nash equilibrium is presented. The current paper provides a modified variable returns to scale (VRS) model that yields non-negative cross-efficiency scores. The approach is applied to the last six Summer Olympic Games. Our results may indicate that our game cross-efficiency model implicitly incorporates the relative importance of gold, silver and bronze medals without the need for specifying the exact assurance regions.
TL;DR: In this article, a visual exploration of the efficient frontier and trade-offs between profitability and environmental impacts is proposed to answer two important questions: (i) how to spot the preferred solution(s) balancing environmental and business concerns; (ii) How to improve the understanding of the tradeoffs between these two dimensions.
TL;DR: This paper uses data envelopment analysis (DEA) to evaluate the operational performance of a sample of AEA--Association of European Airlines from 2000 to 2005, combining operational and financial variables.
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TL;DR: In this article, the authors studied the effect of activity-based funding on hospital efficiency and found that the benefit from cost-reducing efforts in terms of number of treated patients is increased under ABF compared with global budgets.
Abstract: Activity-based financing (ABF) was implemented in the Norwegian hospital sector from 1 July 1997. A fraction (30 to 50 per cent) of the block grant from the state to the county councils has been replaced by a matching grant depending upon the number and composition of hospital treatments. As a result of the reform, the majority of county councils have introduced activity-based contracts with their hospitals. This paper studies the effect of activity-based funding on hospital efficiency. We predict that hospital efficiency will increase because the benefit from cost-reducing efforts in terms of number of treated patients is increased under ABF compared with global budgets. The prediction is tested using a panel data set from the period 1992-2000. Efficiency indicators are estimated by means of data envelopment analysis (DEA) with multiple inputs and outputs. Using a variety of econometric methods, we find that the introduction of ABF has improved efficiency when measured as technical efficiency according to DEA analysis. Contrary to our prediction, the result is less uniform with respect to the effect on cost-efficiency. We suggest several reasons why this prediction fails. Keywords are poor information of costs, production-oriented drive, tight factor markets and soft budget constraints.
TL;DR: In this paper, the authors used the Kruskal-Wallis test to statistically verify the existence of a relationship between the organizational form of a chain and its efficiency score, and showed that plural form networks are in average more efficient than strictly franchised and wholly owned chains.
Abstract: Plural form tends to be the most popular organization form in retail and service networks compared to purely franchised or purely company-owned systems. In the first part, this paper exposes the evolution of researchers’ state of mind from the way of thinking which considers franchising and ownership as substitutable organizational forms to theories which analyze the utilization of both franchise and company arrangements. The paper describes the main attempts to explain theoretically the superiority of plural forms. In the second part, the paper discusses the hypothesis which says that there is a relationship between the organizational form of the chain and its efficiency score. It is demonstrated through the application of a data envelopment analysis method on French hotel chains that plural form networks are in average more efficient than strictly franchised and wholly owned chains. The Kruskal–Wallis test which is a distribution-free rank-order statistic is used to statistically verify this relationship. The result does not permit the rejection of the null hypothesis regarding whether an organizational form is more efficient than another one. Hence, this paper opens prospects for researches aiming at testing the organizational form effect on different samples and with other methods.
TL;DR: In this article, the authors illustrate an application of non-oriented network slacks-based measure using simulated profit center data that, in turn, rely on actual aggregate data on domestic commercial banks in the United Arab Emirates (UAE).
Abstract: Standard data envelopment analysis (DEA) does not provide adequate detail to identify the specific sources of inefficiency embedded in interacting divisions of an organization On the other hand, network DEA gives access to this underlying diagnostic information that would otherwise remain undiscovered As a first study of its kind, the paper illustrates an application of non-oriented network slacks-based measure using simulated profit center data that, in turn, rely on actual aggregate data on domestic commercial banks in the United Arab Emirates (UAE) The study also contributes to a perennial research problem, namely, inability of the outside researcher to access internal data for developing or testing new methods In addition to these contributions to the Operations Research literature, focusing on UAE contributes to banking literature because this rapidly expanding part of the Middle East seldom appears in frontier efficiency literature
01 Dec 2009
TL;DR: This paper proposes an FMEA which uses data envelopment analysis (DEA), a well-known performance measurement tool, to determine the risk priorities of failure modes and measures the maximum and minimum risks of each failure mode.
Abstract: Failure mode and effects analysis (FMEA) is a method that examines potential failures in products or processes and has been used in many quality management systems. One important issue of FMEA is the determination of the risk priorities of failure modes. In this paper we propose an FMEA which uses data envelopment analysis (DEA), a well-known performance measurement tool, to determine the risk priorities of failure modes. The proposed FMEA measures the maximum and minimum risks of each failure mode. The two risks are then geometrically averaged to measure the overall risks of failure modes. The risk priorities are determined in terms of overall risks rather than maximum or minimum risks only. Two numerical examples are provided and examined using the proposed FMEA to show its potential applications and benefits.
TL;DR: The aim of this paper is to test the performance of these recent models of Data envelopment analysis and to compare among them using simulated data from a Monte Carlo experimental design.
TL;DR: In this paper, the authors define a new convexity assumption when data includes a ratio variable, and propose a series of modified DEA models which are capable of rectifying this problem.
TL;DR: A network-DEA model with new efficiency measures to systematically cope with the dynamic effect within a production network is proposed and the relationship between returns-to-scale properties of DMUs and those of its constituting SDMUs is formalized.
TL;DR: Using a recent sample of large corporate failures in the United States, it is found that DEA outperforms LR in evaluating bankruptcy out-of-sample and is a practically appealing method for bankruptcy assessment.
TL;DR: This article examined the impact of financial deregulation on cost and profit efficiency of Indian commercial banks during the post-reform period 1992-2004 using the nonparametric data envelopment analysis (DEA).
TL;DR: In this paper, the authors modify one of the centralized data envelopment analysis (DEA) models and suggest modifying it to only consider adjustments of previously inefficient units, where some variables are controlled by a central authority (e.g. Head Office) rather than individual unit managers.
Abstract: In two recent papers, Lozano and Villa [Centralized resource allocation using data envelopment analysis. Journal of Productivity Analysis 2004;22:143–61. [1]] and Lozano et al. [Centralized target setting for regional recycling operations using DEA. OMEGA 2004;32:101–10. [2]] introduce the concept of “centralized” data envelopment analysis (DEA) models, which aim at optimizing the combined resource consumption by all units in an organization rather than considering the consumption by each unit separately. This is particularly relevant for situations where some variables are controlled by a central authority (e.g. Head Office) rather than individual unit managers. In this paper we reconsider one of the centralized models proposed by the above-mentioned authors and suggest modifying it to only consider adjustments of previously inefficient units. We show how this new model formulation relate to a standard DEA model, namely as the analysis of the mean inefficient point. We also provide a procedure that can be used to generate alternative optimal solutions, enabling a decision maker to search through alternate solution possibilities in order to select the preferred one. We then extend the model to incorporate non-transferable as well as strictly non-discretionary variables and illustrate the models using an empirical example of a public service organization.
TL;DR: A case study on LCA of mussel cultivation in rafts shows that direct link between operational efficiency and environmental impacts can help to convince the managers and operators of the cultivation sites of the double dividend of reducing inputs consumption and achieve operational efficiency: lower costs and lower environmental impacts.
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TL;DR: In this article, the authors examined the cost efficiency of 39 micro-finance institutions across Africa, Asia and the Latin America using non-parametric data envelopment analysis and found that non-governmental microfinance organizations particularly; under production approach, are the most efficient and this result is consistent with their fulfillment of dual objectives: alleviating poverty and simultaneously achieving financial sustainability.
Abstract: This study examines the cost efficiency of 39 microfinance institutions across Africa, Asia and the Latin America using non-parametric data envelopment analysis. Our findings show non-governmental microfinance institutions particularly; under production approach, are the most efficient and this result is consistent with their fulfillment of dual objectives: alleviating poverty and simultaneously achieving financial sustainability. However, bank-microfinance institutions also outperform in the measure of efficiency under intermediation approach. This result reflects that banks are the financial intermediaries and have access to local capital market. It may be possible that bank-microfinance institutions may outperform the non-governmental microfinance institutions in the long run.
TL;DR: In this article, the authors employ Data Envelopment Analysis to compute the technical efficiency of Italian and English higher education institutions and find that institutions in both countries are typically very efficient.
Abstract: We employ Data Envelopment Analysis to compute the technical efficiency of Italian and English higher education institutions. Our results show that, in relation to the country‐specific frontier, institutions in both countries are typically very efficient. However, institutions in England are more efficient than those in Italy when we compare jointly their performances. We also look at the evolution of technical efficiency scores over a four‐year period, and find that, in line with an error‐correction hypothesis, Italian universities are improving their technical efficiency while English universities are obtaining stable scores. Policy implications are addressed.
TL;DR: In this paper, a comparative analysis on the performance of the Islamic banking sector in 16 MENA (Middle East and north Africa) and Asian countries is provided. But, the analysis is limited to the use of data envelopment analysis (DEA) to estimate the technical, pure technical and scale efficiency for each bank in the sample.
Abstract: Purpose – The purpose of this paper is to provide a comparative analysis on the performance of the Islamic banking sector in 16 MENA (Middle East and north Africa) and Asian countries.Design/methodology/approach – A two‐stage procedure is followed to examine the efficiency of Islamic banking sectors in 16 MENA and Asian countries. First, data envelopment analysis (DEA) is used to estimate the technical, pure technical, and scale efficiency for each bank in the sample. Following previous research, an annual frontier specific to each year is constructed, as it is more flexible and thus more appropriate than estimating a single multiyear frontier for the banks in the sample. It has been pointed out that the principal advantage of having panel data is the ability to observe each bank more than once over a period of time. Nevertheless, the issue is also critical in a continuously changing business environment because the technology of a bank that is most efficient in one period may not be the most efficient in...
TL;DR: This study measures and compares the performance of national R&D programs using data envelopment analysis (DEA), and two alternative approaches to incorporating the importance of variables, the AR model and output integration, are introduced.
TL;DR: In this paper, the authors show that Shephard's specification does satisfy weak disposability and is the smallest technology to do so, and they also show that it is the correct technology to use in activity analysis.
Abstract: In his 2005 paper in this journal, Kuosmanen argues that Shephard's specification of weak disposability in activity analysis (DEA) models is not correct. We show that Shephard's specification does satisfy weak disposability and is the “smallest” technology to do so.