DEA Analysis Research Articles

Why are the railways of Eastern Europe less efficient than those of the West?

We use a DEA analysis to compare the efficiency of the railways of Western and Eastern Europe and find while most railways of Western Europe are on the efficiency frontier, those of Eastern Europe are typically a long way from it. One explanation may be that the reform process only started much later in Eastern Europe than in the West, although it appears that Eastern Europe has largely caught up. Secondly, Eastern Europe suffered a significant loss of traffic after the end of the communist regime, and this may still be resulting in an excess of labour and assets. There is some evidence that this remains the case for labour and freight vehicles. Although the excess of freight vehicles may be largely vehicles out of service, they still contribute to the poor efficiency scores for Eastern Europe. It is also the case that the countries of Eastern Europe suffer some disadvantages in terms of population density. However, we believe that two aspects of policy play an important role in the poorer performance of Eastern European countries compared with Western. Firstly, is the poorer infrastructure quality associated with lower levels of investment. This shows up as less use of electric traction and slower train speeds, resulting in lower productivity of staff and assets. Despite the efforts of the European Commission to overcome this problem, there is still a long way to go. Secondly, is the strong use of public service obligations to maintain high levels of service with relatively low load factors. If it is desired to raise the efficiency of Eastern European railways, governments in Eastern Europe will need to consider whether they are specifying excessively high levels of service.

Spending on Intangibles and The Growth of Public Sector Enterprises In India: A Measure-Specific DEA Analysis

A recent surge of intangible investment to navigatethe productive capability of Central Public Sector Enterprises (CPSEs) resurrected a range of doubt about the trajectory of choices and the actual managerial space that actualizes these choices. Though spending on intangibles and more particularly on R&D contribute substantially to growth parameters but the ambiguous magnitude of spending patterns and treatment of such expenditure from regular business operation to an investment element, in particular, to enhance the valued capability, yet unresolved in the corporate world. Recent studies on the usefulness of intangibleoutlay and capitalization of the same in improving future returns evidenced a gloomy pattern of crisis in the measurement and allocation of intangibles. As evidenced, most of the spending on intangibles by the business units in India is targeted to secure “patent for profit” rather than to achieve “valued capability” to expand real opportunities to choose between alternatives. Based on the last ten years' dataset of Maharatna Enterprises this study critically examines the contribution of decisive one from the container of four inputs namely spending on software, other R&D expenditure, materials, and employee costs on a set of productive activities covering the revenue and net- value- added, as these are more regular in enhancing both profit and production capability with the help of input-oriented VRS weighted measure-specific DEA model. Results show that the multidimensional performances between the enterprises are not uniform throughout the study period and that the efficiency is highly correlated with the size of a few companies like ONGC, BHEL, and GALE and higher spending DMUs on intangibles do not necessarily have higher-ranked performance in terms of returns and net value added. This study provides valuable insights for managers aiming to maximize the benefit of variety in Software and other R&D spending patterns considering the sizes of the companies while minimizing the risk associated with excessive diversity beyond the moderate threshold in intangible investments.

EFFICIENCY OF SDGS IMPLEMENTATION IN VILLAGE SUSTAINABLE DEVELOPMENT TO REDUCE INCOME DISTRIBUTION INEQUALITY

Introduction: Village development in Indonesia aims to improve the welfare of the community, especially in terms of income equality. To achieve this goal, people-centered sustainable development is needed. Sustainable development is an effort to improve the quality of life while still trying not to exceed the ecosystem that supports life. Sustainable development in villages can be implemented through the Village SDGs. The Village SDGs include 17 goals that are interconnected with each other. Each goal has specific targets in addressing pressing social, economic, and environmental issues and creating a more just and sustainable future together. The purpose of this study is to determine whether people-centered sustainable development is effective in reducing income distribution inequality and to explain how it affects income distribution inequality. Methods: Using DEA analysis and panel data regression, the research object is 33 provinces in Indonesia. Results: The results show that education and income have a significant negative effect on income inequality. Furthermore, health has a significant positive effect on income distribution inequality. Conclusion and suggestion: Equal access to education, health, and equal income, will be effective in reducing the level of inequality in the community.

Impact of environmental, energy and business efficiency on [formula omitted] emissions: A composite indicator for emerging Asia-Pacific markets

Environmental, energy, business and development dynamics have received strong research interest. However, previous studies have mainly explored these topics separately. Conversely, we study these aspects jointly, constructing a composite indicator and assessing resulting impact on several SDGs domains. The aim of the analysis is to discover the importance of latent aspects in explaning the environmental, energy and business efficiency for specific countries. Estimating this multidimensional efficiency is relevant for the identification of the conditions for the achievement of CO2 containment and sustainable development progress. We make use of the World Bank's World Development Indicators (WB WDI) for selected emerging countries from the Asia-Pacific region ranging from lower-middle-income to upper-middle-income economies, following the WB Group country classifications by income level. We build a composite indicator for eliciting diverse dimensions related to the environment, energy policy and economic factors. The first steps of the indicators analysis are achieved by the combination of the DEA and Tobit analyses. Therefore, we examine the environmental, energy and business efficiency according to the economic development stage of the analysed countries, making use of an entropy index. The index’ robustness is tested at both stages – first, exploring the Tobit analysis, therefore, by inspecting an additional Asia-Pacific country having a different income with respect to the benchmark. The results suggest the creation of country clusters. Above all, China outstands in terms of environmental efficiency and R&D, as a result of a broader energy development strategic plan in the last few decades.

Efficiency and Effectiveness of Indian Textile Industry: An Interstate Network DEA Analysis

The present paper aims at examining the technical efficiency of textile industry of India in a network in which the efficiency of industry has been computed in a two-staged network frontier analysis. Stage one being of production efficiency and stage two of social efficiency. The study has utilised Annual Survey of Industries (ASI) unit level data for NIC-2008 industry codes NIC131 (spinning weaving and finishing of textile industry) and NIC-141 (manufacture of wearing apparel, except fur apparel) for the period of five years. Important finding of the analysis is that the managerial slacks are restricting the potential efficiency gains to Indian spinning, weaving and finishing of textile industry while, the large-scale inefficiency is potential threat to manufacturing of wearing apparel except fur industry.

Evaluation of innovation efficiency of high-tech enterprise based on DEA and Malmquist index under the background of sustainable development

Purpose This paper aims to promote the higher quality development of high-tech enterprises in China. While science and technology have greatly promoted human civilization, resources have been excessively consumed and the environment has been sharply polluted. Therefore, it is particularly important for current enterprises to make use of scientific and technological innovation to maximize the benefits of mankind, minimize the loss of nature, and promote the sustainable development of our country. Design/methodology/approach By using DEA-Banker-Charnes-Cooper (BCC) model and DEA-Malmquist model, this paper comprehensively examines the innovation efficiency of high-tech enterprises from both static and dynamic perspectives, and conducts a provincial comparative study with the panel data of ten representative provinces from 2011 to 2020. Findings The research findings are as follows: the rapid number increase of high-tech enterprises in most provinces (cities) is accompanied by an ineffective input–output efficiency; the quality of high-tech enterprises needs to comprehensively examine both input–output efficiency and total factor productivity; and there is not a positive correlation between element investment and innovation performance. Research limitations/implications Because the DEA model used in this paper assumes that the improvement direction of invalid units is to ensure that the input ratio of various production factors remains unchanged but sometimes the proportion of scientific and technological activities personnel and the total research and development investment is not constant. In the future, the nonradial DEA model can be considered for further research. Due to historical data statistics, more provinces, cities and longer panel data are difficult to obtain. The samples studied in this paper mainly refer to the provinces and cities that ranked first in the number of national high-tech enterprises in 2020. Limited by the number of samples, DEA analysis failed to select more input and output indicators. In the future, with the accumulation of statistical data, the existing efficiency analysis will be further optimized. Originality/value Aiming at the misunderstanding of emphasizing quantity and neglecting quality in the cultivation of high-tech enterprises, this paper comprehensively uses DEA-BCC model and DEA Malmquist index decomposition method to make a comprehensive comparative study on the development of high-tech enterprises in ten representative provinces (cities) from two aspects of static efficiency evaluation and dynamic efficiency evaluation.

Науково-методичні аспекти аналітики сучасних бізнес-моделей інфраструктурних рішень

Modern infrastructure is a complex of systems, networks, objects and technologies that ensure the effective functioning of society and the economy in the conditions of modern challenges and technological progress. The creation and maintenance of such infrastructure is a critically important aspect for the development of the country, its competitiveness and ability to adapt to new conditions. The introduction of innovative methods, such as the business process approach, allows creating efficient and adaptive infrastructure systems. At the same time, business practices have not become sufficiently widespread in infrastructure enterprises, which is an important problem in the conditions of directing significant funds to restore damaged and create new infrastructure. The purpose of the research is to determine the features of the business model of infrastructural solutions and to develop proposals for evaluating its effectiveness. The study identifies the key elements of the infrastructure services business model. The main directions of transformation of business models in the infrastructural sphere are considered. In accordance with modern management standards, the key principles of the concept of continuous improvement of business processes in the field of service enterprises have been defined. DEA analysis was used for the comparative assessment of the effectiveness of the business model of business structures based on the results.

Assessing the performance of Peruvian education system from a governance perspective

This paper delves into the complexities of assessing educational performance and efficiency in the context of education governance. We propose a novel perspective on how governing features of educational systems influence their efficiency, focusing on the key features of public bodies responsible for local education management in Peru, known as UGELs. We characterize the educational production function using three inputs: planning conditions, human resources, and accountability mechanisms; and two outputs: student achievement and educational progress. Our efficiency estimation utilizes Robust Free Disposal Hull, Robust Data Envelopment Analysis, and Stochastic Non-parametric Envelopment approaches, leveraging unique government data from 2014. Additionally, we explore potential factors like infrastructure and internet access that could improve UGELs’ efficiency through conditional DEA analysis. Our findings highlight the need for nuanced methodologies in evaluating educational performance and reveal a significant gap in existing literature. This paper addresses this gap by offering a comprehensive evaluation framework, emphasizing the importance of thorough assessments for gauging educational institution efficiency. As policymakers increasingly rely on evidence-based decision-making, our research provides valuable insights that can inform and shape education policy decisions, making it a significant contribution to the field of education policy and governance.

Effectiveness of Higher Education Financing: DEA and SFA Modelling

The article aims to assess the effectiveness of financial expenditures in higher education for 31 provinces in China, namely overall, technical and scale efficiency, and to determine whether the returns to scale are increasing or decreasing for each province. The main method used is the three-stage DEA analysis / Data Envelopment Analysis, and software DEAP2.1 and Frontier 4.1 are used for modelling. Financial expenditures on higher education form an input parameter in the DEA model. The output parameters (determining the efficiency of higher education) are the number of students, the number of full-time teachers and the new value added to fixed assets in higher education institutions. The modelling was carried out for 2008-2013 and 2014-2018 (the COVID-19 pandemic is not considered to avoid uncommon trends and unpredictable disturbances in the model). A comparison of the analysis results for these periods allowed the identification of new trends and patterns. The study takes into account three main groups of parameters: 1) endogenous (inefficiency of internal management processes); 2) exogenous (gross regional product per capita of each province in China; the extent of university clustering, which is determined by political and market decisions and does not depend on educational institutions; and the degree of fiscal decentralisation, which is estimated in the article as the ratio of local and state budget expenditures per capita, taking into account the distribution of total budget expenditures for each district and the total population of the respective territory); 3) random disturbances. At the first stage of the study, a BCC model focused on inputs (to assess the technical efficiency of financial expenditures on higher education in different provinces) was built. It does not consider exogenous factors and random disturbances. In the second stage, SFA (stochastic frontier analysis) was applied to account for the impact of all three groups of factors (endogenous, exogenous and statistical noise) on the efficiency of financial expenditures in higher education for each province in China. In the third stage, the adjusted and standardised input and output parameters are incorporated into the BCC models, and the actual value of efficiency caused by exogenous parameters and the influence of random factors is determined. A comparison of the results of each modelling stage for each stage in the study and each province in China allowed the establishment of how the influence of the determinants of higher education financing efficiency changed in chronological and spatial contexts.

Enhancing urban emergency management: A two-stage network DEA analysis of Chinese cities

In order to scientifically evaluate the emergency management capabilities of major cities in China, this article conducts a comprehensive study on the input and output indicators of emergency response in each city. A two-stage network DEA model was used to construct an evaluation model that reflects the emergency management capacity of cities. A dataset containing emergency management data from 36 well-known cities in China was selected to effectively evaluate its performance, and the city that demonstrated the most effective input-output ratio in the field of emergency management was ultimately determined. The research results show that using a two-stage network DEA model as the foundation to construct an evaluation model that reflects urban emergency management capabilities can promote a wise combination of subjective and objective evaluations, and achieve scientific investment in urban emergency assets.

DEA models as a tool for evaluating and measuring the efficiency of public universities

Nowadays, the issue of measuring economic and non-economic efficiency is related not only to the enterprise itself but also to the organizations providing education. Measuring the economic efficiency of an educational institution cannot be done as clearly as in the case of enterprises whose mission is to produce products and services for the purpose of selling them. In the case of educational institutions in the form of public universities, profit cannot be considered as the main objective. Universities only report data stipulated by the current legislation, thus measuring efficiency is a rather challenging matter with ambiguous quantification. This study analyzes the efficiency of public universities through some publicly available indicators of their activities. The selection of indicators was made based on the analysis of previous scientific works that dealt with the issue. The basic selection criteria were whether the indicators were verifiable and unquestionable. The work focused on the construction of a model based on DEA analysis of efficiency at constant returns to scale. Descriptive statistics, correlation analysis, cluster analysis, deduction, induction, comparison, and synthesis were also used. Through these methods, it was possible to construct a general model for evaluating the efficiency of public universities.

전문대학의 상대적 효율성 분석과 생산성변화 연구

This study was conducted to measure the relative efficiency of 124 junior colleges in Korea. Data for three years from 2020 to 2022 were provided on the university information disclosure website, and the relative efficiency and productivity changes of junior colleges were analyzed using DEA and Malmquist techniques. As a result of the DEA analysis, it was analyzed that the efficiency of 23 junior colleges in 2020, 34 in 2021, and 26 in 2022 is determined by scale. As a result of the analysis of the Malmquist productivity index, a total of 33 junior colleges have generated technological progress, and 91 junior colleges have generated technological regression, which is about three times higher than the occurrence of technological progress. The average value of MPI-based productivity was analyzed to have decreased by about 4.8% over three years, and it was found to be affected by changes in efficiency. It was analyzed that 108 junior colleges were affected by efficiency by scale, excluding 16 junior colleges that were analyzed to have pure technological efficiency greater than efficiency of scale.

ENVIRONMENTAL PROTECTION ACTIVITIES IN BULGARIA – COMPARATIVE ANALYSIS IN REGIONAL ASPECT

Environmental protection activities differ according the specifics of the regions. They lead to optimal use of resources, reduction of climate impact, ensuring security of energy supply, improving the health of ecosystems etc. The aim of the paper is to be prepared a comparative analysis between the planning regions in terms of environmental protection activities and on this basis to be determined the place of each region and to be evaluated the effectiveness of the financial sources used for environmental protection activities. The paper presents literature review of some environmental protection activities. The paper analyzes data related to the environmental protection activities undertaken in the planning regions related to household waste submitted for recycling, waste water discharged from treatment plants, installed renewable energy sources capacities, research and development expenditure, number of buildings financed under the National program for energy efficiency of multifamily residential buildings. Comparative analysis of environmental protection activities by planning regions is prepared in order to be presented the trends of some indicators and to be made a comparison between the regions. On the basis of the data analysis, the comparison between the planning regions for the period 2017 -2021 was made, and they were ranked in three groups – active, moderately active and low active. The analytical part of the paper also includes DEA analysis to be found the most effective region according to the chosen inputs. In all DEA models, the aim is to evaluate the effectiveness of indicators such as tangible fixed assets (TFA) with ecological use, expenditures for research and development and financial resources under the Operational program environment (OPE). These indicators are defined as Inputs. For outputs are chosen generated municipal waste, waste water discharged without treatment, CO2 emissions and destroyed territories. Based on the analysis are made some general conclusions and recommendations for increasing the engagement of the region to carry out environmental protection activities. The South Central and South Western regions are the most active in terms of carrying out activities that lead to environmental protection, the South Eastern and North Eastern regions can be defined as moderately active, and the North Central and North Western regions as low active in terms of environmental protection activities. In order to increase the engagement of the regions to carry out environmental protection activities, various initiatives can be taken, most often related to better understanding of ecological benefits, taking political actions and implementation of regulations in economic sectors related to the environment and natural resources, spreading of good practices. Key words: environment, planning region, regional differences JEL: P28, R11

Utilizing green financing in developing green HRM resources for carbon neutrality: presenting multidimensional perspectives of China.

This study examines how green finance may encourage the development of green human resource management (HRM) solutions to help China achieve carbon neutrality. For an empirical estimate, the Chinese data is subjected to DEA analysis, Tobit regression, and a sensitivity analysis model. The findings highlight the significance of green finance in the creation of green HRM solutions that aid firms in enhancing their environmental performance, boosting employee happiness, and getting them closer to their carbon neutrality goals. With the use of tools like green bonds and sustainable investment funds, businesses may raise capital for sustainability projects and encourage the adoption of environmentally responsible HRM practices. Moreover, the study results discussed the need to incorporate environmental sustainability considerations into HRM plans, enabling organizations to cultivate a sustainable culture and engage employees in supporting carbon neutrality through green practices in talent acquisition, training and development, performance management, and employee engagement. Incorporating environmental sustainability into HRM processes, boosting stakeholder involvement, and looking into new funding methods are all points emphasized in the study, which aims to enhance the uptake of green HRM initiatives.

The Validity of Personal Income Tax Deductions: Analyzing Expenses for Children’s Education in Private Schools in Moscow

Tax incentives are commonly used to support various sectors and population, and this study delves into the realm of deductions for the personal income tax (known as NDFL in Russia). We explore differing perspectives on these deductions, considering them either as investments in human capital for future income growth or as a form of government-initiated financing for specific sectors. Focusing on deductions related to children’s education expenses in private schools, the research evaluates the effectiveness of budgetary investments in this sector. Using DEA analysis, the study assesses private schools based on factors like teacher-student ratios, classroom space per student, and access to computers and educational literature. The learning outcomes were measured by the number of high performers in the Unified State Exam and the number of 9th-grade graduates with certificates of distinction. The evaluation of learning outcomes reveals that many private schools in Moscow prioritize comfort over educational standards and the majority of them perform below the average levels in terms of effectiveness. The findings prompt questions about the feasibility of including private school expenses in personal income tax deductions. The proposed approach recommends tying eligibility for these deductions to the effectiveness of private schools, ensuring a more targeted and impactful use of tax benefits.

Measurement of digital development with partial orders, Tiered DEA, and cluster analysis for the European Union

AbstractThe digital economy is increasingly seen as an essential cornerstone in developing national strategies and industrial policies to enhance national competitiveness. On the other hand, a realistic assessment of digital readiness is essential for developing appropriate policies. In our paper, we group the countries of the European Union (EU) using three different methods applied to a dataset consisting of the four main dimensions of the EU's Digital Economy and Society Index (DESI) in order to identify Europe's main geographical “fault lines” in terms of digital readiness. DESI is a composite index aggregating several digitalization-related indicators to benchmark the progress of digital transformation in each member state. However, our methods aim not to rank countries but to identify groups of countries that are close to each other. The three methods used in the paper are partially ordered sets (poset), Tiered Data Envelopment Analysis (TDEA), and cluster analysis, known from multivariate statistics. The three types of clustering show a high degree of similarity, indicating the robustness of the results. Another research question relates to the extent to which the digital development of the EU Member States corresponds to the economic development of the countries and core–periphery relationships. While we can observe a high degree of similarity between the more and less developed clusters in terms of digital readiness and the groups that can be identified in terms of economic development and institutional quality, we also notice some peculiar exceptions (which could provide examples of best practices).

The role of CAP subsidies in all European Union member states: an analysis of technical inefficiency

The purpose of this research was to assess the impact of CAP payments made to farms included in the European FADN dataset between 2004 and 2019 and, considering this financial aid as an environmental variable, identify patterns of inefficiency in EU farming. The study has adopted a twofold quantitative approach, applying both two-stage DEA and Multidirectional Efficiency Analysis. The results reveal significant imbalances between EU member states over the period of investigation, and underline the specific effect that total CAP disbursed subsidies and second pillar CAP support have on technical inefficiency.

Assessing Asian Countries' Competitiveness: Two-Stage Dea Analysis of Global Innovation Index and Logistics Performance Index Integration

Competitiveness has emerged as a crucial economic characteristic in policy and academia. It refers to the combination of institutions, policies, and factors that determine a country's level of productivity by assessing different aspects of competitiveness. This paper aims to assess the competitiveness of Asian countries by combining Global Innovation Index (GII) and Logistics Performance Index (LPI). The authors implement an integrated model called the Data Envelopment Analysis Super Slack-Based Measure Model (DEA–Super SBM) and the Malmquist Model (DEA–Malmquist) to assess competitiveness from 2012 to 2018. The study begins by validating seven critical factors from the GII and the LPI that impact competitiveness. Subsequently, the Super-SBM model evaluates the competitiveness efficiency for 30 Asian countries during the specified time frame. The DEA–Malmquist model is then employed to analyze the overall change in countries' competitiveness productivity across Asia. This research suggests that most Asian countries have achieved competitiveness efficiency, with countries such as China, Pakistan, and Kuwait demonstrating high indicators. However, a few countries still exhibit relatively low competitiveness indicators, and there has been some variation in competitiveness efficiency over the years. The study's implications can provide valuable insights to governments and policymakers, aiding in developing effective strategies to strengthen competitiveness and foster economic development. Keywords: efficiency; inefficiency; competitiveness; GII; LPI; Data Envelopment Analysis; Malmquist; Super Slack-Based Measure; Asia

Increasing Sugarcane Production Eco-Efficiency: A DEA Analysis with Different Sugarcane Varieties

The development of new sugarcane varieties affects crop production positively. However, only some studies have investigated how the use of different sugarcane varieties reacts to the impact of climate change, and how to improve sugarcane production efficiency considering the use of different sugarcane varieties in the field. This research hypothesizes that it is possible to mitigate climate change’s impact on sugarcane production and improve eco-efficiency if the proper sugarcane varieties are chosen. The main objective is to analyze the influence of different sugarcane varieties on production eco-efficiency. An econometric study unveiled the main elements affecting sugarcane production in this research. Afterward, a data envelopment analysis determined the sugarcane varieties with more efficient production. The results indicated that climate impact on production was irrelevant when controlling for different sugarcane varieties. Furthermore, it was found that through correct variety choosing, it is possible to improve harvest efficiency. The outcome of this research contributes to achieving the United Nations SDGs 1, 2, 7, 9, and 15.

Bangladeş'teki İmalat Sanayilerinde Teknik Verimlilik: DEA Parametrik Olmayan Analiz

This study's aim is to evaluate the technical efficiency of Bangladesh's manufacturing industry. We utilized DEA analysis with selected three distinct DEA models: CCR, BCC, and the slack-based model. In this study, the number of firms, labour, salary/wages, industrial and non-industrial cost are considered as inputs variables, and the gross output value is set as the output variable. Our analysis found that Common efficient industries are the Manufacture of beverages, Manufacture of tobacco, readymade garments, rubber and plastic, transport equipment, Recycling, non-metallic mineral products, machinery and equipment, motor vehicles & trailers and Repairs of machine & equipment. By using three DEA model explored that, in most circumstances manufacture of beverages, tobacco products, of Readymade garments industries remain among topmost performers in positions of proficiency achievement. This research suggests that those industries have made significant efficiency improvements, and they have also gained the ability to continue competing in the global marketplace.