Double Envelopment Research Articles

A double bootstrap data envelopment analysis model with stochastic reducible outputs and expandable inputs: An application to power plants

Clean production of electricity is not only cost-effective but also effective in reducing pollutants. Toward this end, the use of clean fuels is strongly recommended by environmentalists. Benchmarking techniques, especially data envelopment analysis, are an appropriate tool for measuring the relative efficiency of firms with environmental pollutants. In classic data envelopment analysis models, decision-makers are faced with production processes in which reducible inputs are used to produce expandable outputs. In this contribution, we consider production processes when the input and output data are given in stochastic form and some throughputs are reducible and some others are expandable. A stochastic directional distance function model is proposed to calculate the relative technical efficiency of firms. In order to evaluate firm-specific technical efficiency, we apply bootstrap DEA. We first calculate the technical efficiency scores of firms by classic DEA model. Then, the double bootstrap DEA model is applied to determine the impact of explanatory variables on firm efficiency. To demonstrate the applicability of the procedure, we present an empirical application wherein we employ power plants.

The influence of organisational and staff characteristics on local governments’ efficiency: the case of Mexican municipalities

ABSTRACT Administrative capacity depends on organisational and human factors that can enhance or diminish the performance of local governments. To analyse the effect of these factors, efficiency scores of municipal governments were calculated and regressed against organisational and staff characteristics, using double bootstrap data envelopment analysis, on a sample of 1470 Mexican municipalities. Of the variables related to staff characteristics, the proportion of employees with college education, and remunerations, have a positive and statistically significant effect on efficiency. Of the organisational characteristics of local governments, the number of computers per employee was the main variable explaining the efficiency of municipal governments.

A double bootstrap data envelopment analysis model for evaluating malaria spending efficiency in Sub-Saharan Africa

Malaria is a major cause of morbidity and mortality in many countries in sub-Saharan Africa. The main objective of this study was to examine malaria spending efficiency and its associated factors in sub-Saharan Africa by employing a two-stage double bootstrap data envelopment analysis (DEA). In the first stage, technical efficiency scores are estimated using the output-oriented variable returns to the scale (VRS) framework. In the second stage, the double bootstrap DEA model is used to identify the environmental variables that affect malaria spending efficiency. We estimate the overall malaria spending efficiency score over the study period. This estimate suggests that malaria treatment and prevention outcomes can improve significantly. We find a significant association between efficiency and education, temperature levels, nurses’ and midwives’ density, and the proportion of children of age five who slept in insecticide-treated bed nets. We conclude that policymakers must not only be concerned with improving educational outcomes but also consider ways to mitigate the effects of climate change and improve access to healthcare services.

Efficiency evaluation of higher education systems in China: A double frontier parallel DEA model

Higher education plays a crucial role in socioeconomic development. This paper proposes a double frontier parallel data envelopment analysis model to evaluate the performance of Chinese higher education systems. Such a system can be divided into a higher ordinary education subsystem and a higher vocational education subsystem. The presented approach comprehensively measures higher education system performance in terms of optimistic and pessimistic aspects. Using the presented approach, we estimate the overall and subsystem efficiencies simultaneously. We use this new technique to study the efficiencies of 30 provincial higher education systems in China during 2015–2017. Our crucial findings are as follows. (1) The presented model has more ranking discrimination power than the traditional optimistic and pessimistic models. (2) Jiangsu, Shaanxi, and Shandong obtain high average system efficiencies. (3) The inefficiency of higher education systems stem from both the higher ordinary education subsystem and higher vocational education subsystem. (4) The western area of China has the lowest average system efficiency and average subsystem efficiencies.

Tourist attraction efficiency and its determinants using a two stage, double bootstrap data envelopment analysis: a case study in Indonesia

ABSTRACT Tourist attractions account for a critical component of tourism competitiveness. However, empirical research regarding tourist attraction efficiency is absent from literature. Respectively, this paper explores efficiency levels of tourist attractions and its determinants. 34 provinces of Indonesia were selected as the study setting. We employed the two-stage double bootstrap data envelopment analysis (DEA), an innovative approach that weathers the statistical shortcomings of the more traditional approaches. A 3-year data from 2017 to 2019 served for the analysis. Tourist attraction efficiency in Indonesia was relatively low. We revealed negative effects from population size, human development index (HDI), climate, and crime rate towards tourist attraction efficiency. Positive relationships were found for formal workforce, micro and small enterprises, and transportation. This study extends literature on tourism efficiency, and presents useful insights concerning tourism management.

Managing nitrogen environmental impacts to improve green technical efficiency in Philippines rice cultivation

The efficient use of nitrogen fertilisers is a global priority to optimise the economic and environmental outcomes of farming. This paper is the first to consider pollution in the form of nitrous oxide emissions and excess nitrogen to analyse technical efficiency (TE) in farming. This is done by extending the two-stage double bootstrap Data Envelopment Analysis to explicitly model nitrogen pollutants as undesirable outputs. We compared green TE (when undesirable pollutants are considered) and conventional TE (without pollutants) using a case study of 33 rice-producing provinces in the Philippines. Provinces in Mindanao, Luzon, and Visayas islands experienced improvements in green TE but stagnant conventional TE from 2006 to 2017. Although transplanting rice seedlings (rather than direct sowing of seeds) improved both green and conventional TE, seed quality was also identified as an important factor for green TE but not for conventional TE. Our analysis has implications for sustainable rice production and such analysis can be extended to other crops. To advance the effective green transformation of rice production, future research should analyse farm-level data to understand farmers’ decisions regarding seed quality, crop establishment method and nitrogen fertiliser application to devise comprehensive farm integrated management plans.

Assessing the sustainability of transport supply chains by double frontier network data envelopment analysis

The transport industry is one of the main contributors to environmental pollution. Sustainable supply chain management (SSCM) is an essential subject in the transportation industry. Today, one of the important goals of organizations is to evaluate the sustainability of supply chain (SC) because assessing the efficiency of SCs helps organizations to enhance their awareness of performance and develop managerial strategies. Data envelopment analysis (DEA) is a common technique to assess the sustainability. The objective of this paper is to propose a Malmquist productivity index (MPI) based on network data envelopment analysis (NDEA) model in the presence of integer data, undesirable outputs, and non-discretionary inputs. The NDEA models deal with the internal structure of decision making units (DMUs). The MPI reflects the productivity change over time. The proposed model can fully rank DMUs. To prove the applicability of the proposed model, the sustainability of intercity passenger transportation is evaluated.

Technical efficiency of resource-poor maize farmers in northern Ghana

Abstract Farm productivity in most developing countries remains low, hence the need to enhance technical efficiency (TE) of producers. This study evaluates the TE of maize production in rural Ghana, using primary data from a survey of smallholder producers. A two-stage double bootstrap data envelopment analysis (DEA) approach was used to assess TE and its determinants. The results revealed a bias-corrected mean TE of 68% (as opposed to 81% using the traditional DEA approach). Hence, with the prevailing technology and current input levels, farmers can increase their TE of maize production by 32%. TE increased with adoption of improved varieties, weeding frequency, and herd size but decreased with producer’s age, household size, educational status, and group membership. Subsequently, these factors need to be carefully considered in targeting policies for increasing maize productivity. The study observed increased adoption of improved varieties and training in efficient methods of weed control as important measures to enhance TE of maize farmers.

Efficiency and management factors: finding the balance in Thalassaemia care centres

BackgroundOptimizing efficiency has become increasingly critical with the growing demand for finite healthcare resources driven by population growth and an ageing society. Hence, policymakers are urgently finding more efficient ways to deliver health services. Thalassemia is a complex inherited blood disorder with significant prevalence in Malaysia. The high number of patients put substantial strain on the healthcare system. This study aims to evaluate the technical efficiency of thalassaemia care centres throughout Malaysia and the determinants that affect the efficiency.MethodData from 30 public hospitals with thalassaemia care centres were collected. A double bootstrap data envelopment analysis (DEA) approach is used with the assumption of input-oriented and variable-to-scale DEA models to generate technical efficiency scores. Bootstrap truncated regression was later conducted to identify the factors affecting the efficiency scores.ResultsThe mean bias-corrected technical efficiency score has improved to 0.75 in 2017 from 0.71 in 2016. In both years, more than 50% of thalassaemia care centres showed good efficiency scores (0.8-1.0). Management factors that affect the efficiency scores include separation of patient management (β = 0.0653) and budget (β = 0.0843), where they are found to positively affect the efficiency scores. In contrast, having longer operating hours is found to inversely influence the performance levels (β = − 0.4023).ConclusionsThe study provides a pioneering framework to evaluate the technical efficiency of thalassaemia treatment centres in public healthcare settings and could provide a useful guide for policymaker and thalassaemia care centre managers to improve efficiency in service delivery to thalassaemia patients and their caregivers without compromising quality of care.

Technical and resource-use efficiencies of cashew production in Ghana: implications on achieving sustainable development goals

The expansion of Ghana’s cashew industry is expected to be a watershed moment in the country’s diversification of agricultural export commodity trade. In Ghana’s cashew farms, however, there is a significant difference between observed and potential farm yield. As a result, empirical study is required to serve as policy guidelines in order to improve farmer’s productive efficiency and, as a necessary consequence, contribute to the achievement of the Sustainable Development Goals (SDGs) of no poverty and zero hunger. The study explores farm-level productive efficiency and factors that can lead to variations in farmer’s technical efficiency in the Bono East region of Ghana. The single-stage double bootstrap Data Envelopment Analysis (DEA) was used to estimate technical efficiency and its determinants. The estimated results indicate that the average bias-corrected technical efficiency score (33%) was lower than the original average score (51%), suggesting that the original efficiency scores had been skewed upwards. Some of the primary factors that have been reported as having a significant effect on technical efficiency include the gender of respondents, educational attainment, and membership of farmer groups. Results of the resource-use efficiency analysis suggest that cashew farmers in Ghana do not escape the criticisms of inefficient resource allocation. Farm-level policies should be skewed towards enhancing resource-use efficiency through effective capacity-building to improve farmer’s management and technical capabilities, improve farm productivity, and consequently contribute to Ghana's quest to meet the sustainable development goals.

Technical efficiency of small-scale aquaculture in Myanmar: Does women’s participation in decision-making matter?

Efficient use of inputs is crucial for sustainable aquaculture productivity growth, increased profitability, and improved livelihoods in developing countries. Studies have shown that women’s participation in decision-making (WPDM) can influence technical efficiency among agricultural crops farmers. However, rigorous empirical evidence in small-scale aquaculture is inadequate. Using data from 440 small-scale aquaculture households in the Ayeyarwady Delta region of Myanmar, this study: (a) measures technical efficiency using radial, non-radial and two-stage double bootstrap data envelopment analysis (DEA); and (b) examines the effect of WPDM on technical efficiency. Results reveal that most households perform 45–60% below the production frontier indicating they are not technically efficient. WPDM correlates with a significant increase in technical efficiency suggesting that women’s empowerment contributes to optimal use of inputs and improved on-farm aquaculture performance. Practicing polyculture and implementing climate change adaptation strategies correlate with enhanced efficiency. Practicing polyculture with compatible fish species allows advantageous interactions and coexistence which improve inputs utilization and reduce wastes. Judicious use of inputs as a strategy for addressing climatic shocks possibly explains the positive correlation between adaptation and technical efficiency. Together, the findings highlight the important need to promote interventions targeted at improving technical efficiency of small-scale aquaculture producers. Improving technical efficiency can reduce production costs, increase net farm income, and provide a sustainable supply of nutritious foods, a source of essential micronutrients such as vitamins and omega-3 fatty acids, and affordable animal-source protein. Programs and policies aimed at increasing aquaculture productivity would benefit by including interventions to reduce gender inequality and promoting equity.

The efficiency of municipal solid waste collection in Mexico.

Since the 1980's, some Mexican municipalities have subcontracted waste collection services to private companies, with an eye on increasing the efficiency of this service. However, the impact of private management on the Mexican waste sector performance has not been evaluated. In this study, the efficiency of waste collection in Mexico was analyzed to test the hypothesis that private companies are more efficient at waste collection than municipal governments. A two stage double bootstrap Data Envelopment Analysis (DEA) was applied to a sample of 1,626 municipalities. In the first stage, unbiased efficiency scores were calculated, and in the second stage, these scores were regressed against a set of environmental covariates which were thought to affect efficiency, including a dummy variable to identify the municipalities where waste is collected by a private company. Results suggest that private waste collection companies are more efficient than municipal governments. Other environmental variables such as population density, average household income, and tourism were also found to affect waste collection efficiency. The analysis also indicates that curbside collection is associated with a higher efficiency, while separate collection of waste is negatively correlated to efficiency.

Analyzing factors affecting the technical efficiency of small-scale seaweed farms using a two-stage double bootstrap DEA approach

ABSTRACT Low productivity in seaweed farms in the Philippines is due to issues ranging from lack of training, weather damage, and prevalence of pest and diseases. This study sampled 63 small-scale seaweed farmers in Ipil, Zamboanga Sibugay, as part of a development project. Technical Efficiency (TE) scores were calculated using the two-stage double bootstrap Data Envelopment Analysis (DEA) approach to investigate the causes of inefficiencies and external factors affecting small-scale production. Bias-corrected TE scores reveal that input use can be reduced by 55% to produce the same level of output, suggesting significant efficiency gaps. Factors such as primary occupation, number of farms, access to credit, farm location, and type of product sold had significant effect on technical efficiency. Extending government loan facilities to include seaweed farmers can lead to a reduction in inefficiency. Government initiatives to encourage seaweed farming, choosing the right farm location, and providing information can positively impact efficiency.

Deregulation, efficiency and policy determination: An analysis of Australia's electricity distribution sector

In 1998, the Australian electricity distribution was deregulated with the aim of promoting competition and reducing retail prices. However, since then these outcomes have not transpired, which raises the question of whether there may be underlying causes leading to inefficiencies within the power distribution industry. To assess the performance of the electricity distribution system and sources of (in)efficiency since deregulation, we employ Simar and Wilson's (2007) double bootstrap data envelopment analysis truncated regression approach. The results suggest that most distributors were operating well below efficient levels for the period concerned. In the second-stage analysis, the results indicate that reliability promotes efficiency suggesting that a focus should be placed on the continuous supply of energy. Specifically, inefficient distributors can improve network reliability by replacing aged poles and the expansion of market size could encourage healthy competition.

The efficiency of post-reform water utilities in Mexico

The efficiency of Mexican water utilities was studied by applying double bootstrap data envelopment analysis (DEA). Efficiency scores were calculated and regressed against a set of explanatory variables to analyze the effect of type of management and reform policies on efficiency. Results indicate that the few privately managed utilities in the sample, which are subject to local regulation, may be more efficient than publicly managed utilities operating at different governmental levels. The creation of decentralized autonomous water utilities did not appear to increase efficiency, as was expected from the reform. The policy of cutting water service to non-paying customers, indicating a business orientation, was found to be positively correlated with efficiency.

TECHNICAL EFFICIENCY OF ARABLE FARMS IN SERBIA: DO SUBSIDIES MATTER?

This paper analyses the technical efficiency of arable farms in Serbia and its determinants using a two-stage double bootstrap Data Envelopment Analysis (DEA) approach on the Farm Accountancy Data Network (FADN) data from 2014 and 2015 with special emphasis on the impact of agricultural subsidies on the technical efficiency of arable farms in Serbia. Bias-corrected DEA efficiency scores were first calculated and then regressed on a set of explanatory variables using the double-truncated regression approach. The estimates suggest that the share of rented land, land to labour ratio and financial stress variables are the main determinants of arable farm efficiency in Serbia. For the subsidies we found that area payments and input subsidies have some impacts on the technical efficiency of arable farms. In contrast, investment and other subsidies were found to have an insignificant impact on farm technical efficiency. These results suggest that the future potential shift of the Serbian agricultural support towards the Common Agricultural Policy (CAP)-like area based payments is expected to have a minimal but likely positive impact on farms technical efficiency in Serbia.

Assessing the efficiency of countries in making progress towards universal health coverage: a data envelopment analysis of 172 countries

IntroductionMaximising efficiency of resources is critical to progressing towards universal health coverage (UHC) and the sustainable development goal (SDG) for health. This study estimates the technical efficiency of national health...

Investigating the link between medical urgency and hospital efficiency \u2013 Insights from the German hospital market

With hospital budgets remaining tight and healthcare expenditure rising due to demographic change and advances in technology, hospitals continue to face calls to contain costs and allocate their resources more efficiently. In this context, efficiency has emerged as an increasingly important way for hospitals to withstand competitive pressures in the hospital market. Doing so, however, can be challenging given unpredictable fluctuations in demand, a prime example of which are emergencies, i.e. urgent medical cases. The link between medical urgency and hospitals’ efficiency, however, has been neglected in the literature to date. This study therefore aims to investigate the relationship between hospitals’ urgency characteristics and their efficiency. Our analyses are based on 4094 observations from 1428 hospitals throughout Germany for the years 2015, 2016, and 2017. We calculate an average urgency score for each hospital based on all cases treated in that hospital per year and also investigate the within-hospital dispersion of medical urgency. To analyze the association of these urgency measures with hospitals’ efficiency we use a two-stage double bootstrap data envelopment analysis approach with truncated regression. We find a negative relationship between the urgency score and hospital efficiency. When testing for non-linear effects, the results reveal a u-shaped association, indicating that having either a high or low overall urgency score is beneficial in terms of efficiency. Finally, our results reveal that higher within-hospital urgency dispersion is negatively related to efficiency.

Two-Stage Double Bootstrap Data Envelopment Analysis for Efficiency Evaluation of Shared-Bicycle Stations in Urban Cities

To optimize the performance and operation of shared-bicycle systems, this study aims to evaluate the efficiency of shared-bicycle stations and to find factors affecting their efficiency scores. We analyzed the efficiency of 1,260 shared-bicycle stations in the City of Seoul using shared-bicycle rental and trajectory data as of June 2018. In this study, the two-stage bootstrap data envelopment analysis, which is a non-parametric frontier technique, was applied to estimate each shared-bicycle station’s efficiency. In the first stage, we evaluated efficiency scores by employing the number of bicycle racks and bicycle path ratio as input variables, and bicycle turnover rate and balancing rate as output variables. The efficiency scores were regressed on potential covariates using a bootstrapped truncated regression in the second stage. From our results, the efficiencies of shared-bicycle stations were found to be diverse depending on the nature of land use around the station location. The results present evidence to show that shared-bicycle stations located in residential and school-dominated areas are likely to be efficient, whereas those in semi-industrial areas, commercial, and business districts are generally inefficient. Furthermore, the effect of variables like the commuting population, the number of registered vehicles, and the number of bicycle-related accidents per year were statistically significant, thus affecting shared-bicycle station performance. This study offers essential insights into the efficiency of shared-bicycle stations, which could be incorporated into shared-transportation strategies to improve mobility in urban cities.

Gender differentials in technical efficiency of Ghanaian cocoa farms

This study considers the presence of a gender gap in technical efficiency in Ghana's cocoa production sector. The two-stage double bootstrap data envelopment analysis (DEA) procedure was applied to estimate the bias-corrected technical efficiency scores for male and female cocoa farm managers. The results indicate that there is a potential for male and female cocoa farm managers to increase output without altering the quantities of inputs employed. Applying the extended version of the Blinder-Oaxaca (B-O) decomposition approach, the findings suggest that female plot managers are, on average, less technically efficient compared to their male counterparts. This gap could be linked to differences in their resource endowments. Nevertheless, there are still significant unobservable factors that contribute to the gender efficiency gap. A comprehensive decomposition examination indicates that differences in educational attainment, engagement in non-farm activities, and farm size may contribute to the unexplained technical efficiency gap. The study recommends that female-sensitive programmes that seek to encourage the participation of non-farm activities and provide access to education and land utilization are essential in reducing the gender gap in technical efficiency.