Differences In Efficiency Levels Research Articles

Estimating health system opportunity costs: the role of non-linearities and inefficiency

BackgroundEmpirical estimates of health system opportunity costs have been suggested as a basis for the cost-effectiveness threshold to use in Health Technology Assessment. Econometric methods have been used to estimate these in several countries based on data on spending and mortality. This study examines empirical evidence on four issues: non-linearity of the relationship between spending and mortality; the inclusion of outcomes other than mortality; variation in the efficiency with which expenditures generate health outcomes; and the relationship among efficiency, mortality rates and outcome elasticities.MethodsQuantile Regression is used to examine non-linearities in the relationship between mortality and health expenditures along the mortality distribution. Data Envelopment Analysis extends the approach, using multiple measures of health outcomes to measure efficiency. These are applied to health expenditure data from 151 geographical units (Primary Care Trusts) of the National Health Service in England, across eight different clinical areas (Programme Budget Categories), for 3 fiscal years from 2010/11 to 2012/13.ResultsThe results suggest differences in efficiency levels across geographical units and clinical areas as to how health resources generate outcomes, which indicates the capacity to adjust to a decrease in health expenditure without affecting health outcomes. Moreover, efficient units have lower absolute levels of mortality elasticity to health expenditure than inefficient ones.ConclusionsThe policy of adopting thresholds based on estimates of a single system-wide cost-effectiveness threshold assumes a relationship between expenditure and health outcomes that generates an opportunity cost estimate which applies to the whole system. Our evidence of variations in that relationship and therefore in opportunity costs suggests that adopting a single threshold may exacerbate the efficiency and equity concerns that such thresholds are designed to counter. In most health care systems, many decisions about provision are not made centrally. Our analytical approach to understanding variability in opportunity cost can help policy makers target efficiency improvements and set realistic targets for local and clinical area health improvements from increased expenditure.

Bank risk-taking and competition in developing banking markets: Does efficiency level matter? Evidence from Africa

We contribute to the existing literature on the nonlinear nexus between competition and risk-taking by exploring how differences in efficiency levels affect the risk-taking of banks when competition increases. Based on a sample of 430 African banks, this paper reveals that, banks with high and low efficiency tend to take more risk than those with average efficiency level. This study further suggests that bank specific characteristics and macroeconomic dynamics, play an important role in the competition-risk-taking nexus within African banking industry. Besides, while the penetration of African Cross-border banks does not stimulate risk-taking in the hosts domestic markets, an improvement of banking regulation (Basel 2.5, 3 and further) is mandatory to mitigate their possible adverse effects on the competition-financial stability nexus.

External Two Stage DEA Analysis of Bank Efficiency in West Balkan Countries

Since the beginning of the application of the Data Envelopment Analysis (DEA) model in various areas of the economy, it has found its wide application in the field of finance, more specifically banks, in the last few years. The focus of this research was to determine the sustainability of the intermediate function of banks, especially in recent years when interest rates on deposits have been at a minimum level. The research was divided into two parts, wherein the first part determined the efficiency of the intermediate function of banks in the countries of the Western Balkans in the period from 2015 to 2019. The second part approached the regression analysis in which we determined the influence of the bank size, type of bank, and mergers and acquisitions (M&A) activity on the defined efficiency. In the first stage we applied the output-oriented DEA model using deposits, labor costs, and capital as input variables; on the other side, we used loans and investments as output variables. We used data from the revised financial statements of the banks operating in Serbia, Bosnia and Herzegovina, Montenegro, North Macedonia, and Albania. The results of our study showed that there is a difference in efficiency levels between countries and within countries in the considered time period. Furthermore, Tobit regression analysis showed a significant and negative influence of the bank type and M&A on relative technical efficiency of banks, and a positive and significant relationship between bank size and relative efficiency. These findings suggest that large commercial banks can sustain on the West Balkan market. It is to be expected that less efficient small banks will be taken over by large and more efficient banks.

SPIN OFF POLICY OF SHARIA BANK: IS IT PROFITABLE?

According to Law no. 21 Year 2008, the Sharia Business Unit (SBU) owned by a Conventional Commercial Bank (CCB) is required to separate from its Parent Bank before year 2023. Some Sharia Business Units have initiated a separation step from Conventional Commercial Bank. On the other hand, they are required to keep the level of efficiency in running its business operations. This paper is intended to analyze the efficiency level of Sharia Business Units that have separated from its parent and then compare whether there is difference of efficiency level between before and after separation. The method used is Data Envelopment Analysis (DEA) and Paired Sample t-Test. The results show that based on the total average efficiency of all sharia banks spin off (in this case four sharia banks namely BNI Sharia, BRI Sharia, BJB Sharia and Bukopin Sharia Bank), there occur a decrease in efficiency technically and also pure the technical itself in sharia banks starting from before and after the spin off. This can be read because in the early periods of spin off there was a cost adjustment on the shariah bank spin off. Sharia banks require a 'weaning' from their parents. Nevertheless, there is no statistically significant difference in efficiency levels between before and after the spin off. This should be a booster for other Sharia Business Units to take the decision to spin off immediately, of course, accompanied by careful and prudent planning and implementation.

EFISIENSI BANK UMUM SYARIAH DAN UNIT USAHA SYARIAH DI INDONESIA TAHUN 2012-2016 METODE NON PARAMETRIK

This research purpose to analyze and comparing the level of efficiency of IslamicBanks and Sharia Business Unit in Indonesia. Input variables that used for measurement of efficiency are total of funds, fixed assets, and operational expenses, and output variables are total financing, cash, and other operational expenses. The method that used for measurement of efficiency is non parametric method with Constan Return to Scale (CRS) and Variable Return to Scale (VRS) assumption. The statistical tool that used for comparing the level of financing efficiency between Islamic Banks and Sharia Bussiness Unit is Mann-Whitney U-Test. The samples are 11 Islamic Banks and 19 Sharia Business Unit that comply with the specified sample criteria. The results of this researchshowed that with assumption CRS is Business Unit more efficient than Islamic Banks Islamic, but with assumption VRS is Islamic Banks more efficient than Business Unit. The result of hypothesis test showed that with CRS assumption there is a difference in level of efficiency of Islamic Banks and Sharia Business Unit in Indonesia, and with VRS assumption there is not difference in level of efficiency of Islamic Banks and Sharia Business Unit in Indonesia.

Efficiency analysis of Italian wine producers

An analysis of the efficiency of wine and grapevine producers in Italy was performed. Data for 2005 and 2010 from the Farm Accountancy Data Network were used; this network records the balance sheets of a representative sample of farms. The data were analyzed using data envelopment analysis, which is a method for estimating the comparative efficiency of a group of farms. We investigated the determinants of the estimated levels of efficiency through an econometric model, aiming to understand which farm and area characteristics affect the differences in efficiency levels. The results indicate that between 2005 and 2010, a reduction in grape prices led to an increase in the efficiency of companies producing wine compared with a significant reduction among companies that are dedicated exclusively to the production of grapes.

GLOBAL SOURCING AND TECHNICAL EFFICIENCY – A FIRM-LEVEL STUDY ON THE ICT INDUSTRY IN SWEDEN

We analyse the relationship between international sourcing, measured as imports of intermediate inputs, and the technical efficiency of firms in the information and communications technologies (ICT) manufacturing industry in Sweden. Using stochastic frontier analysis, we provide evidence that global sourcing improves firms’ capabilities to combine and re-combine inputs in productive ways, thereby increasing technical efficiency. We find a robust relationship between technical efficiency and international outsourcing. First, we find that firms that are deeply integrated into global sourcing networks are closer to their own production frontier. Second, firms that are engaged in international sourcing are also closer to the industry efficiency frontier. These findings are consistent with the argument that international sourcing stimulates firms’ capabilities by enabling them to identify and adopt higher quality inputs or more efficient production and management practices. These findings also suggest that the variety and extent of firms’ global sourcing networks constitute an important source of differences in efficiency levels among firms the ICT manufacturing industry.

KOMPARASI EFISIENSI PERBANKAN SYARIAH DAN PERBANKAN KONVENSIONAL DI INDONESIA

The purpose of this study was to: (i) acknowledge and examine the differences between the financial performance of Islamic banking with conventional banking, (ii) to analyze and explain the differences in efficiency levels between Islamic banking and conventional banking (iii) analyze and compare the efficiency of Islamic banking with banks conventional. The population used in this study is a commercial bank in Indonesia with 124 banking institutions with the details of five state banks and 119 private banks. sample of banking institutions in this study are 5 government-owned banking institution (s) and 12 institutions of Islamic banks. The method of analysis used in quantitative research is descriptive (analytic). Measurement and test efficiency and efficiency ratio of the difference of Islamic banking from conventional banking to use Supplier Data Analysis (DEA) and two different test mean (t-test). The results showed during the observation period 2012-2016, economic activities (banking) of Islamic banks are relatively more efficient than conventional banks Keywords: comparative, efficiency, financial performance

Efficiency differences among China's resource-based cities and their determinants

Based on the 2012 data from 116 resource-based cities in China, this paper measures efficiency in resource-based cities by using the super-SBM model, analyzes the differences in efficiency levels among cities, and finds their major determinants. It also examines if the effects of the determinants on efficiency vary at different efficiency-levels by using quantile regression. The four major findings of this study are as follows. First, most of the resource-based cities in China are total factor energy (TFE) inefficient. Second, the level of industrialization, the contribution of service industry to local GDP, and the size of built districts in the city are the three major determinants with significantly positive effect on efficiency. On the other hand, consumer spending, the local government expenditure, and the availability of vocational schools are the three major determinants with significantly negative effect on efficiency. Third, the six determining factors account for 79% of the efficiency differences among the cities. However, the contributions of the factors to TFE efficiency vary widely. Fourth, the effects of the determinants on TFE efficiency change with the efficiency-level of the city.

New evidence on the determinants of efficiency at Brazilian ports: a bootstrapped DEA analysis

This paper reports on the use of different approaches for measuring efficiency in 27 major Brazilian ports from 2007 to 2011. Several DEA estimates were generated using the bootstrapping technique presented in Simar and Wilson (1998, 2004), thus allowing bias correction to test for significant differences in efficiency levels and their major determinants. Results not only corroborate previous evidence regarding capacity shortfalls within Brazilian ports, but also suggest a positive impact for: a) connectivity infrastructure on scale efficiency levels; b) private administration on managerial efficiency levels; c) higher technical efficiency levels on handling costs and queuing times.

Effects of Childcare Subsidies on Employment and Earnings of Low-Income Mothers

Abstract This study examines how childcare subsidies funded by the Child Care and Development Fund (CCDF – the most widespread childcare subsidy program in the United States) affect the employment status and earnings of low-income mothers. Employing a rich database of administrative records, we compute instrumental variables and control function estimates of the program’s effects. As an exclusion restriction, we take advantage of differences in efficiency levels across administrative agencies that process subsidy applications and payments. CCDF-funded subsidies have short-term effects that are primarily driven by changes in the extensive margin of labor supply. Mothers who are either unemployed or earning closer to the upper cutoff of eligibility benefit the most from participation in this program.

Measuring the efficiency of trade shows: A Spanish case study

Trade shows are an important industry in the Spanish economy which contribute positively to regional development. However, the cost of attending a trade show is very high for exhibiting firms and so knowledge of trade shows' efficiency is necessary in order to define the decision making process for the exhibiting firm. With the aim of evaluating the efficiency indexes of operating trade shows, this study applies a multi-stage methodology for oriented DEA models and a nonparametric test to analyze the differences in efficiency levels driven by specific variables and organizational forms. The sample is made up of 45 trade shows at IFEMA (Madrid's Fair Institution). The results show significant differences in efficiency across IFEMA. The nonparametric tests reveal differences in efficiency levels driven by the sector and the type of trade show. Moreover, the evidence allows provide managerial implications and future developments.

Efficiency Determinants and Capacity Issues in Angolan Insurance Companies

AbstractThis paper describes a variety of approaches used to assess the efficiency of a sample of major insurance companies in Angola between 2003 and 2012. Starting out with the bootstrapping technique, several data envelopment analysis (DEA) estimates were generated, allowing the use of confidence intervals and bias correction in central estimates to test for significant differences in efficiency levels and input‐decreasing/output‐increasing potentials. Previous studies have focused on the measurement and explanation of the factors affecting the performance rather than the prediction. The use of neural networks combined with DEA results as part of an attempt to produce a model for insurance companies’ performance with effective predictive ability is investigated. The findings indicate that older insurance companies with Portuguese origin tend to be more efficient. Results also suggest that opportunities for accommodating future demand appear to be scarce.

COMPARATIVE ANALYSIS ON THE EFFICIENCY OF THE FIRM AND THEIRS DETERMINANTS OF EUROPEAN TRANSITION ECONOMICS

In this study we evaluate the efficiency of the firms with DEA technique and bootstrapping procedure in eleven transition economics among sixth industrial and service sectors in a cross-section 2005. At the second stage, we study the relationship between corrected efficiency scores and possible explanatory variables. On one hand, our result shows statistically significant differences in efficiency levels across countries and sectors. Likewise, significant levels of inefficiency are identified especially in service sectors (Hotels and Restaurants, Retail and Wholesale and Transport). On the others hand, the results of the analysis in second stage confirmed the existence of a significant relationship between the country that firms operate (country-effect) and firm′s age (learning by doing). The latter relationship between age and efficiency has different behaviors according to the sector concerned, in the form of U shape in the Hotels and Restaurants, inverted U shape in Metal and Machinery and Wood and Furniture and linear in the Retail and Wholesale sector. Contrary perhaps to expectations, the results also allow us to conclude that there is no important statistically significant relationship between the efficiency and variables related to the strategies implemented by firms and the control of the property.

Efficiency determinants and capacity issues in Brazilian for-profit hospitals

This paper reports on the use of different approaches for assessing efficiency of a sample of major Brazilian for-profit hospitals. Starting out with the bootstrapping technique, several DEA estimates were generated, allowing the use of confidence intervals and bias correction in central estimates to test for significant differences in efficiency levels and input-decreasing/output-increasing potentials. The findings indicate that efficiency is mixed in Brazilian for-profit hospitals. Opportunities for accommodating future demand appear to be scarce and strongly dependent on particular conditions related to the accreditation and specialization of a given hospital.

Global CO2 efficiency: Country-wise estimates using a stochastic cost frontier

This paper examines global carbon dioxide (CO2) efficiency by employing a stochastic cost frontier analysis of about 170 countries in 1997 and 2007. The main contribution lies in providing a new approach to environmental efficiency estimation, in which the efficiency estimates quantify the distance from the policy objective of minimum emissions. We are able to examine a very large pool of nations and provide country-wise efficiency estimates. We estimate three econometric models, corresponding with alternative interpretations of the Cancun vision (Conference of the Parties 2011). The models reveal progress in global environmental efficiency during a preceding decade. The estimates indicate vast differences in efficiency levels, and efficiency changes across countries. The highest efficiency levels are observed in Africa and Europe, while the lowest are clustered around China. The largest efficiency gains were observed in central and eastern Europe. CO2 efficiency also improved in the US and China, the two largest emitters, but their ranking in terms of CO2 efficiency deteriorated. Policy implications are discussed.

Capacity shortfall and efficiency determinants in Brazilian airports: Evidence from bootstrapped DEA estimates

This paper reports on the use of different approaches for assessing efficiency related-issues in 63 major Brazilian airports. Starting out with the bootstrapping technique presented in Simar and Wilson (1998, 2004), several DEA estimates were generated, allowing the use of confidence intervals and bias correction in central estimates to test for significant differences in efficiency levels, returns-to-scale, and input-decreasing/output-increasing potentials. The findings corroborate anecdotal and empirical evidence regarding a capacity shortfall within Brazilian airports, where infrastructure slack is virtually inexistent, regardless of the airport type and location.

The Policy and Efficiency Analysis of EU Pre-Accession Funds in Turkey

This article focuses on multi level governance (MLG) in Turkey by examining EU pre-accession funds by developing an interdisciplinary, multidimensional approach integrating vertical and horizontal relations at different levels of governance with the main principles (concentration; programming; partnership and additionality) of EU structural funds. It analyzes the dual governance structure on the efficient utilization of EU funds allocated to 191 municipality and local authority projects executed under two calls covering seven NUTS II regions and twenty cities in Turkey and demonstrates the differences in efficiency levels by using an empirical approach. Results show that pre-accession funds promote the formation of an EU-model MLG structure by generating new forms of relations among the authorities at different levels.
 
 KEYWORDS: • multi-level governance • efficiency analysis • DEA • EU pre-accession funds • Turkey

Efficiency amongst China's banks: a DEA analysis five years after WTO entry

WTO entry in 2001 heralded a new stage in the reform of China's banking sector. With the reality that foreign banks would be extended national treatment by the end of 2006, China's banks faced the imperative to reform in earnest. They began reforms from a variety of different starting points and have pursued a variety of different reform approaches. Five years on, this paper assesses efficiency levels in 11 of China's most prominent banks. The results, obtained using Data Envelopment Analysis (DEA), suggest that differences in efficiency levels are actually quite small. On the one hand, this finding is encouraging because it suggests that few of China's major banks lag behind the pack. On the other hand, it also implies that efficiency levels almost certainly do lag in China's less prominent banks, which together still account for more than 40% of total banking system assets.

Trade, technology transfer and national efficiency in developing countries

This paper simultaneously explores the determinants of the developing countries’ production frontier and these countries’ ‘efficiency’ in using the available resources and technology. In doing so it allows for the transfer of (industrial country) technology in determining the frontier and for international trade's influence on absorptive capacity and national efficiency levels. Stochastic frontier analysis is used to model the production frontier for 57 developing countries for the period 1970–1998, to measure cross-country and temporal differences in efficiency levels and to explain the differences in efficiency levels. The results indicate significant differences in efficiency levels across countries and regions and movement over time, and an important influence of trade and trade policy in raising output both through technology improvements embodied in imported capital goods and by inducing efficiency improvements.