DEA Efficiency Research Articles

Analysis of foreign affiliate efficiency and determinants: evidence from Korean multinational firms

Multinational firms establish foreign affiliates to reduce production and transaction costs and open markets. This study was conducted to determine whether foreign affiliates are efficient in production—the efficiency of foreign affiliates established by Korean multinationals through foreign direct investment from 2007 to 2018. DEA efficiency was measured by dividing it into pure, technical, and scale efficiency. An empirical analysis using the panel Tobit and Probit models examined the factors affecting efficiency decisions. It was confirmed that the total number of foreign affiliates’ employees significantly affects their efficiency. In addition, it was analyzed that establishments with traditional FDI motives, such as taking advantage of low wages and promoting exports, harm the efficiency of foreign affiliates.

Measuring the effectiveness of budget expenditures

The article discusses the issues of measuring the effectiveness of budget expenditures on the basis of international comparisons using the DEA method . Macroeconomic (Musgrevian) indicators as well as sectoral performance indicators in relation to administrative expenditures, education and healthcare were used. Expenditure indicators were the share of budget expenditures in GDP and indicators of expenditure on education and health care per capita. We assess the integral efficiency of budget expenditures, based simultaneously on macro economic and sectoral indicators, as well as separately the effectiveness of expenditures on health care and education. In the DEA efficiency calculations, models with one performance indicator and one type of input and models with several types of costs and benefits were used. It is noted that when calculating integral efficiency, the highest results were achieved during the two periods under consideration by countries both with high results and with a low level of costs, the same applies to calculations of sectoral efficiency. When calculating comparative efficiency, the most favorable results for Russia are related to the calculations of the effectiveness of budget expenditures for education (secondary one). According to the first model of calculations based on DEA, Russia and three other countries are at the efficiency frontier in a sample of 41 countries. It is also noted that Russia’s results in education are higher than in the countries with a similar level of spending.

Performance Test, Index System Establishment, and Comprehensive Evaluation of Earthquake Rescue Robots

To effectively enhance the adaptability of earthquake rescue robots in dynamic environments and complex tasks, there is an urgent need for a comprehensive evaluation method that encompasses establishing an evaluation index system, testing performance indexes, and conducting performance evaluation. Firstly, four main criterion and twenty-three sub-criterion indexes are established by conducting a comprehensive review of existing assessment measures for rescue robots across diverse domains. These indexes are validated through test modules developed by the National Earthquake Response Support Service to obtain corresponding values for each criterion. Moreover, a method for establishing the index system is proposed based on the fuzzy clustering analysis and grey correlation analysis methods. This method effectively addresses issues related to excessive subjectivity, redundancy, and ambiguous stratification of indexes. Subsequently, the DEMATEL is employed to scrutinize the interrelationships and causal connections among each index within the established index system, leading to the identification of input and output indexes based on the analysis outcomes. Finally, as an empirical example, three earthquake rescue robots are comprehensively evaluated and ranked using the super efficiency DEA model. Alongside analyzing results regarding input redundancy and output deficiency, targeted improvement suggestions are provided for each earthquake rescue robot. Additionally, comparison analysis with the entropy weight method and VIKOR method verifies the effectiveness of our proposed method.

Fuzzy DEA Efficiency Analysis with the Acceptance Degree of the Violated Fuzzy Constraints

Fuzzy DEA Efficiency Analysis with the Acceptance Degree of the Violated Fuzzy Constraints

Evaluating Cardiac Surgeon Performance

This paper uses data envelopment analysis to explore how to evaluate physician and hospital clinical efficiency for coronary artery bypass surgery. First, the DEA models (measuring overall technical and scale efficiency partitioned by severity) identified many inefficient surgeons. Regardless of time period studied, relatively few surgeons were found to be on the best-practicing production frontier (DEA efficiency score = 1). The authors offer some evidence that clinical efficiency may be subject to investing in organizational capabilities that arise from operational strategies such as developing open heart surgery as a specialty, years of experience, training, and ultimately, acquiring a cadre of “efficient” surgeons. At a minimum, these findings support including some measures of “superior” organizational capabilities, strategic focus or product specialization, continuing education, and experience in future work.

Evaluating Company Efficiency in Malaysian Stock Markets: Insights from DEA and Super Efficiency Models

Evaluating Company Efficiency in Malaysian Stock Markets: Insights from DEA and Super Efficiency Models

Team-bounded DEA efficiency scores: The case of UEFA Champions League Players

Measuring the efficiency of a football player is an interesting task. Every player invests time and energy to produce an outcome during the game that can lead to a better score for the team. However, football is a team sport, thus the synergy of the entire team is an invisible factor that influences the outcomes a player produces. In this paper, we introduce a novel efficiency estimation model based on the data envelopment analysis that incorporates the team effect in the efficiency score. To achieve this effect, we presented data envelopment analysis models using a single mathematical model. This allows us to define lower and upper bounds on the team efficiency score. More specifically, we introduce a novel type of assurance region constraint around the team performance such that the efficiency score cannot exceed ? times the average team efficiency score. The results of the proposed mathematical model on the UEFA Champions League 2021/22 season show that efficiency scores can be heavily affected by inefficient teammates. However, if the entire team performed well, the drop in efficiency scores is insignificant.

Effective paths and model innovations for social work-driven child protection in the context of the Internet

Abstract Children are the hope and future of the country, and doing an excellent job for children is of great importance to social development. Social work program efficiency assessment, can help service providers and program implementers understand the effectiveness of program implementation. For this reason, this study uses data envelopment analysis and the Tobit regression model to construct a child protection social work program efficiency assessment model. The input-output indicators of child protection program efficiency are selected. The model is used to analyze the input-output efficiency of social work child protection programs in City H from 2018-2021 as an example. The variables that affect the efficiency of child protection programs are explored in depth to explore the effective ways of child protection. The results show that the comprehensive technical efficiency, pure technical efficiency, and scale efficiency of the child protection program in 2018-2021 are all less than 1 and have not reached DEA efficiency. The comprehensive technical efficiency of the program is significantly affected by the scale efficiency, which necessitates an increase in resource investment in the child protection program. In addition, the six selected influencing factors are significant, at least at the 10% level, all of which positively affect the efficiency of child protection programs and need to be focused on to better improve the efficiency of social work services.

DEA에 의한 전통시장의 효율성측정 개선에 관한 연구

In order to increase the effectiveness of traditional market policies, in which enormous funds are invested, it can be said that objective and transparent performance evaluation of traditional markets takes precedence. This study proposed two improvements to the existing DEA method in order to improve efficiency studies on traditional markets. In other words, by using a two-step approach using bootstrap, we first calculated the bias-corrected efficiency and examined how external environmental factors affect the efficiency of the traditional market. First, in order to improve the current DEA efficiency index, which is overestimated based on a finite number of samples, we tried to obtain a bias-corrected efficiency index through bootstrapping. This improvement has caused significant changes in the efficiency rankings among existing traditional markets. Second, truncated regression analysis was conducted by bootstrapping to explain the differences in efficiency between traditional markets that inevitably occur depending on the external environment such as location of traditional markets. As a result, it was found that the existence of large retail stores had a negative effect on the efficiency of traditional markets, while the existence of public facilities and transportation facilities had a positive effect on efficiency. If such an external environment becomes an important cause for the difference in efficiency between traditional markets, regardless of internal management efforts in traditional markets, it can be said that appropriate adjustments and modifications are required in performance evaluation.

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.

Using the Modified Artificial Bee Colony Algorithm to Find the Non-Archimedean Epsilon for Evaluating the Efficiency in DEA

The artificial bee colony algorithm is one of the population-based optimization methods inspired by the evolutionary principles of the social behavior of bees. On the other hand, one of the sub-fields of operations research science is data envelopment analysis. There are some difficulties in DEA models for selecting the appropriate numerical value for an infinitesimal non-Archimedean epsilon. So far, various methods have been proposed to solve this problem and choose the suitable non-Archimedean epsilon. In order to solve the problem, the artificial bee colony algorithm (ABC), and modification of the original ABC algorithm (MABC) are adopted and proposed in this paper. The impacts of our proposed algorithms on the suitable non-Archimedean epsilon by solving only one linear programming (LP), instead of n LP are investigated. Finally, the performance of the proposed algorithms is evaluated by comparing the solutions obtained from GAMS software based on the presented examples.

Comparison of Hospitals in Jakarta as Decision-Making Unit for Technical Efficiency and Cost Values: Application of DEA and SFA

The implementation of national health insurance in Indonesia in 2014 as an effort to provide universal health care was known asthe BPJS program. It was named after the responsible agency: Badan Penyelenggara Jaminan Sosial (Health Social Security Administrator). In its early years of implementation, it was indicated that it was not financially optimal because it made a significant financial loss. Therefore, this research was conducted to examine the efficiency level of several hospitals in Jakarta from a technical and cost perspective. The 2018 data was obtained from the Ministry of Health and BPJS. The survey covered 36 hospitals from various regions in Jakarta and was analyzed using Data Envelopment Analysis and Stochastic Frontier Analysis. DEA Solver LV 8 and Frontier 4.1 were the primary tools in this study. There were two significant results of this study. First, most hospitals in Jakarta were efficient in terms of technical efficiency score of DEA (0.73) and SFA (0.52), whereas cost efficiency was mediocre with a score of DEA (0.56) and SFA (0.50). Second, three indices (regional technical efficiency score, regional cost efficiency score, and ownership cost efficiency score) showed similar patterns for DEA and SFA efficiency scores except for the ownership technical efficiency index. It is recommended that the government should immediately improve the centralized national database for hospitals and decide strategic policy to arrange for cooperation between hospitals primarily by sharing their data on hospitals’ load and staff availability.

Network DEA efficiency of South African higher education: evidence from the analysis of teaching and research at the university level

ABSTRACT The performance of a university depends on departmental activities in a network framework. The university is efficient only if these departments are efficient in their operations. The connection between departments is fundamentally complicated and should be scrutinised to offer more suitable ways for more enhancement. However, to our knowledge, no single study exists which assesses the performance of South African universities in a network structure accounting for the effects of exogenous factors on the overall and structural efficiencies. Our study employed the network-based DEA method to examine the performance of South African higher education institutions in a network structure of teaching and research for the period 2009/10–2016/17. The findings reveal that the efficiency of teaching activities is 0.942, while the efficiency of research operations is 0.782. The network-based performance of South African universities is 0.844, strongly associated with research efficiency. The findings also reveal that the percentages of staff with PhD and Master’s degrees and professional staff, student fees, personnel grant, and government funding influence the efficiency of research activities. A definite need for government organisations and other higher education-related stakeholders should incorporate these findings to strategies for National Development Plan 2030 targets.

Analysis of regional differences in green energy efficiency in countries along “the Belt and Road” Initiative zone—Based on super efficiency DEA model and Malmquist index method

This study uses the super-efficiency DEA model and Malmquist index analysis to evaluate the green energy efficiency of 58 countries along “the Belt and Road” Initiative zone from 2012 to 2021 and uses Tobit regression to analyze the external environmental influences on their green energy efficiency. The results of the study show that in the static analysis, The overall green energy efficiency of 58 countries along the “the Belt and Road” initiative area is low, and there are obvious regional differences; In terms of dynamic analysis, the Malmquist Index shows a slight fluctuation trend from 2012 to 2021. Tobit regression models show that external factors such as economic strength, energy consumption structure, industrial structure, and R&D expenditure are significantly and positively related to green energy efficiency. Based on this, this study proposed that countries should make good use of their resource advantages to improve the overall green energy efficiency of “the Belt and Road” Initiative zone according to local characteristics; strengthen inter-regional cooperation and exchange among countries, and implement outbound strategies to create a favorable development environment for green energy efficiency in “the Belt and Road” Initiative zone. Create a favorable development environment for green energy efficiency in “the Belt and Road” Initiative region.

Regional Allocation Design and Efficiency Improvement of Rural Water Conservancy Project in China

Different development levels and speeds in different regions in China leads to the great difference in the allocation of rural water conservancy projects and the inefficiency. In order to improve the services function and configuration efficiency of rural China water conservancy infrastructure from water engineering, water supply engineering, reservoir engineering, the work chose the Chinese provincial panel data from 2017 to construct input-output indicator evaluation system with super-efficiency DEA. Then we designed the rural area of configuration of water conservancy projects for comparative analysis and China’s current rural water conservancy project region configuration system of geographical network coverage. Finally, based on the configuration in the grid lines, the method was proposed for efficiency. In order to analyze the regional difference in input-output efficiency of rural water conservancy construction, the panel data of 2017 was selected to establish the input-output indicator system of management efficiency. The results of super efficiency DEA show the general situation of input-output efficiency of rural water conservancy construction in China is not good, while there are some differences among input-output efficiency of rural water conservancy construction in East, West, Middle of China. Besides, Qinghai, Beijing, Hainan and Tibet are located in the last four. Finally, the four regions are all relatively effective with less than 100% super efficiency value, and four regions has redundant input in hydropower investment.

Efficiency Evaluation and the Impact Factors of Sustainable Forestry Development in China: Adoption of Super-Efficiency Data Envelopment Analysis and Malmquist Index Methods

Forestry is the underpinning of economic and environmental civilization for sustainable economic development. Forestry benefits ecosystems and local dwellings; thus, transforming and advancing forest products in a civilized society is critical to building a progressive community. This research aims to analyze the merits of forest products based on static, dynamic, and scale efficiency. It employed the super-efficient data envelopment analysis—Charnes, Cooper and Rhodes, and Malmquist index methods with an enhanced robustness check by applying the Stochastic Frontier Analysis. The results show that, first, from the perspective of static efficiency, the forestry industry’s operating performance is maintained at a relatively high level, with a minimal fluctuation range; however, the scale efficiency is observed at a deficient level. Limited by the scale efficiency results, the aggregate comprehensive technical efficiency was at a low standard. The average total factor productivity of dynamic efficiency for each company reached 1.029, indicating that the resource allocation of listed companies is relatively reasonable, operating efficiency is on the rise, and technical level changes are a substantial source of total factor productivity growth. Furthermore, the super efficiency DEA findings indicated that 11 of the most high-performance companies attained an efficiency value above criterion value one after re-ranking. The comprehensive efficiency value of Sun Paper reached 1.438 in 2019, Sophia 1.393, Hexing Packaging 1.383, Fujian Jinsen 1.326, Bunny 1.271, Meike Home Furnishing 1.235, Jingxing Paper 1.222, Zhongshun Jiezou 1.116, Meiying Sen 1.099, Chenming Paper 1.064, Da Ya Dekor 1.015. Second, the comprehensive efficiency value of Fujian Jinsen’s company has a more significant impact on the overall average efficiency of the forestry listed companies. After excluding Fujian Jinsen, the average comprehensive efficiency of 2018–2019 indicated an upward trend for the listed companies. This study suggests that policymakers should strengthen the forestry industry development plan and policy implementation regulations to focus on the forward-looking and guiding principles of industrial and technological innovation policies.

Credit Rating Model of Family Farms and Ranches Based on Dynamic Dichotomous DEA

The key to the sustainable development of family farms and ranches is to solve the problem of financing difficulty, and the construction of the credit rating system of family farms and ranches is the basis of solving the financing difficulty. Therefore, the construction of the credit rating system of family farms and ranches is not only a theoretical problem but also has strong practical significance. On the basis of dichotomous method and improved DEA technology, this paper sets up a credit rating model based on dynamic cycle dichotomous DEA method with the goal of maximizing the efficiency value of credit scoring of family farm and ranch and the constraint of increasing default loss rate. The first feature of this paper is that it constructs a direct mapping from the credit index system to the credit score through the three‐stage DEA model, which avoids the disadvantages of the classical linear weighting formula that relies heavily on the measurement results of different weights, and obtains more accurate and stable credit score results of family farms and pastures. Second, the three‐stage DEA efficiency value is used as the credit score value of the family farm and pasture, and whether it is located in the optimal preset interval is taken as the basis for efficiency dichotomy. The DEA credit score of the family farm and pasture is calculated by dynamic cycle, and the samples belonging to each level of the family farm and pasture are calculated successively according to the order of the credit grade from high to low. Finally, the result of reasonable credit rating of family farm and ranch with high default loss rate and low credit score was obtained. The pyramid test results of matching credit rating and default loss rate show that this research method is effective and has a good pyramid shape.

Primena fleksibilne DEA strukture u upravljanju poslovnim procesima

This paper presents some statistical tests that can be used to test hypotheses of interest for implementing new technologies and improving the efficiency, functionality and business performance of business systems or companies. DEA is a non-parametric technique based on linear programming for measuring the efficiency of decision-making units (DMU) with heterogeneous inputs/outputs. Generally speaking, DEA has a possible large number of inputs and outputs, and the essential problem is that it is often not clear which inputs and which outputs should be chosen when applied to a real problem, that is, when evaluating the efficiency of the system. In tests, the deviation from the DEA borderline can be viewed as a stochastic variable. The DEA estimate is certainly biased in finite samples (debatable statistics), while the expected value of the DEA efficiency is almost certainly the true value of the parameter in large samples (complete statistics). The application of a flexible DEA structure is significant, if there are situations where insufficient information can prevent the use of parametric statistical tests in the processes and outcomes of management and production. The possibility of using DEA analysis in researching the efficiency of constituent units (branches; decision-making unit - DMU) of business systems should be taken into account in research concerning the functionality of business systems and their optimization in terms of productivity, efficiency and functionality. The research results in this paper are presented in tabular and graphical form.

Assessing and ranking the performance of higher education institutions: A non-radial super efficiency DEA approach

Assessing and ranking the performance of higher education institutions: A non-radial super efficiency DEA approach

Assessing and ranking the performance of higher education institutions: a non-radial super efficiency DEA approach

Assessing and ranking the performance of higher education institutions: a non-radial super efficiency DEA approach