Frontier Project Research Articles

Efficiency decomposition and frontier projection of two-stage network DEA under variable returns to scale

The efficiency decomposition and frontier projection of traditional two-stage network data envelopment analysis (DEA) model under variable returns to scale (VRS) are often not equivalent; which not only contradicts DEA theory, but also reduces the scientificity of the model. The main reason for this inequivalence is that there is a synergistic effect of variable scale return in two different stages. Therefore, this paper describes the production frontier of two-stage DEA under VRS for analyzing this synergistic effect, and then the efficiency evaluation pitfalls of two-stage DEA under VRS are identified. From the input orientation, output orientation, non-orientation perspectives, different two-stage network DEA models under VRS are respectively constructed to solve these evaluation pitfalls, and the equivalence relationships of their multiplier model and envelopment model are proved; and then the efficiency decomposition and frontier projection with equivalence relationship can be obtained to meet the different needs of decision-makers. Furthermore, variable intermediate element is discussed in the non-orientation model for achieving the Pareto optimality of two stages during the process of efficiency decomposition and frontier projection. By these models, the theoretical foundation of two-stage network DEA under VRS has been further improved. Finally, two examples are provided to illustrate the effectiveness of the new models.

Evaluating the resource management and profitability efficiencies of US commercial banks from a dynamic network perspective

The central concept of strategic benchmarking is resource management efficiency, which ultimately results in profitability. However, little is known about performance measurement from resource-based perspectives. This study uses the data envelopment analysis (DEA) model with a dynamic network structure to measure the resource management and profitability efficiencies of 287 US commercial banks from 2010 to 2020. Furthermore, we provide frontier projections and incorporate five variables, namely capital adequacy, asset quality, management quality, earning ability, and liquidity (i.e., the CAMEL ratings). The results revealed that the room for improvement in bank performance is 55.4%. In addition, we found that the CAMEL ratings of efficient banks are generally higher than those of inefficient banks, and management quality, earnings quality, and liquidity ratios positively contribute to bank performance. Moreover, big banks are generally more efficient than small banks. Overall, this study continues the current heated debate on performance measurement in the banking industry, with a particular focus on the DEA application to answer the fundamental question of why resource management efficiency reflects benchmark firms and provides insights into how efficient management of CAMEL ratings would help in improving their performance.

Multiple territorialities and the shifting conservation frontiers of Patagonia

AbstractThis conclusion to the In‐Focus issue examines the conservation frontier in Patagonia. The conservation frontier is a historical process of spatial transformation connected to the mobilization of imaginaries that unlock existing regimes of resource control and promote new territorialization projects. The discussion highlights the creation of national park systems, the securing of the contested border, and the conversion of Andean Patagonia into a space of sublime wilderness. We argue that the contemporary conservation frontier is an open field of contestation defined by its multiplicities. The articles comprising the special issue reflect crosscutting themes regarding frontier multiplicities: varied conservation‐based territorialization projects; the genesis of onto‐epistemic frictions between actors; and disparate frontier temporalities that anchor spatial transformations. These contemporary frontier projects draw attention to new avenues of change related to Indigenous self‐rule and carework, co‐management regimes, infrastructure building efforts, and eco‐apocalyptic temporalities, as well as hyping the possibility of Patagonia as a bastion for alternative energy. Thus, this conclusion highlights how conservation frontiers are historically made and remade in relation to spatial production tied to capitalist dynamics and state formation.

The standard reverse approach for decomposing economic inefficiency

The traditional approach decomposing profit inefficiency into the sum of its technical and its allocative components identifies first the frontier projection of each firm based on the exogenous choice of a specific technical measure, e.g., based on slacks, directional, etc. However, in real life situations, firms and organizations are interested in benchmarking themselves against competitors representing the largest feasible profit improvement given market prices. Resorting to the recently defined general direct approach decomposition of profit inefficiency, which decomposes profit loss into the profit technical gap existing between the firm and its frontier projection, and a remaining profit allocative gap, we introduce a decomposition that endogenizes the technical component. This is achieved by securing technical inefficiency reductions that, simultaneously, search to maximize the profit of the projected benchmark. The proposal defines a new measure of technical inefficiency that corresponds to a monetized version of the weighted additive model. We also present a normalized version of the reversed decomposition that is units’ invariant through the definition of a suitable normalization factor.

RETHINKING RURAL CITIZENSHIP IN COMMODITY REGIONS. LESSONS FROM THE LOS LAGOS REGION, CHILE

Recent literature on commodity frontiers and resource-based economies has reopened the debate surrounding the effects of extractive economies on people’s connection to a political system that sustains predominant modes of production. However, the debate has focused on struggles and broader political tensions between social movements and private companies or the State. The present article adopts a different approach, reflecting on the emergence of distinct forms of citizenship in rural territories. Through examining the salmon industry in the Los Lagos region of Chile, I identify connections between commodity production, place-based identity politics, and citizenship performance. I argue that the concept of rural citizenship understood here as the set of practices of relating to the state grounded in a rural sense of belonging and assessment of the place rural areas have in the frontier project is central to understanding political participation in commodity regions and is informed by the trialectic relationship between place identity, commodity production, and the democratic institutions in place. The article concludes with an invitation for further research into frontier politics from a commodity perspective.

Situating extraction in capitalism: Blueprints, frontier projects, and life-making

“Mining (in) Capitalism” considers struggles over large-scale mining projects amid the multi-scalar politics of capitalism, bringing together articles analysing the articulation of national sovereignty over resources, protests over land, jobs and development projects, and individual and collective projects of life-making. This introductory article provides conceptual context, situating the collection within a discussion of what Nancy Fraser (2014) terms an “expanded conception” of capitalism, one that pays attention to multiple hidden abodes of “non-economic” processes and recognizes long-lasting legacies of variegated histories of extraction. The article begins by reviewing shifts in transnationally promoted blueprints for governing mineral extraction. It traces how, while mining projects power capitalism, they undermine its conditions of possibility, provoking struggles and requiring work to maintain extraction. Secondly, it calls for a contextualization of extractivist geographies of frontiers and enclaves that pays attention to older and intersecting projects of confiscation, domination, exploitation and neglect. Thirdly, it argues that such contextualization opens avenues for understanding diverse life projects and lived contradictions in the shadow of extraction. Contextualizing extraction within an expanded conception of capitalism helps illuminate the planetary politics that drive extraction while emphasizing place-specific trajectories of corporate power, distributive projects, protest and accommodation.

Opening the Black-box of Bank Efficiency in Turkey with Two-stage Data Envelopment Analysis: A Study on Capital Adequacy Ratio

Banks constitute approximately 90% of the Turkish financial system, so an efficiently operating banking sector is essential for financial consolidation. To ensure the efficient functioning of the banking production process, capital adequacy ratio (CAR), which is a basic indicator in controlling financial risk, should be managed properly. Additionally, the production process of banks fits into a typical two-stage system, thus opening the black-box on bank efficiency is necessary for an accurate efficiency measurement. By focusing on the link between efficiency, risk and return, this study aims to present a two-stage efficiency evaluation of the commercial banks in Turkey for the year 2018. In addition to the efficiency scores, frontier projections are determined, and an examination is made on the CAR targets. The empirical findings indicate that the inefficiency in the Turkish banking sector mainly stems from the operational performance and the average efficiency score of the state-owned banks is the highest. According to the target values, a pattern is detected between the efficiency scores and CAR. We also conclude that the minimum capital adequacy of 10.5% set by Basel III is not high to guide the commercial banks in Turkey to the efficient frontier.

Comprehensive speed breeding: a high-throughput and rapid generation system for long-day crops.

Breeding cycle time largely determines the efficiency of crop genetic improvement. To accelerate the generation progress, Watson et al. (2018) proposed a concept of 'speed breeding (SB)' by extending the photoperiod and increasing the light intensity during plant growth. However, there have been few reports on the successful application of SB in semi-winter and winter long-day crops. Here, we propose a comprehensive speed breeding (CSB) system for the rapid generation and high-throughput culture of long-day crops, which can accomplish 4.5 generations for both semi-winter canola and winter wheat per year. With the aid of extra far-red light, three and 5.5 generations can be accomplished for the typical winter and semi-winter type canola. CSB also exhibits high efficiency in spring type canola, and can achieve up to 6.5 and 5.5 generations with or without extra far-red light, respectively. This strategy is expected to greatly accelerate gene pyramiding of superior alleles, screening of recombinants for QTL mapping and functional genomics research by rapid purification of multiple mutated alleles.

Effect of International Technology Transfer on the Technical Efficiency of High-Tech Manufacturing in China: A RAGA-PP-SFA Analysis

The sustainable development of China’s high-tech manufacturing (HTM) sector is restricted by dependence on technology introduction and foreign direct investment (FDI), low input-output efficiency, and environmental pollution. This study aimed to examine the roles of technology introduction and FDI in improving the technical efficiency of Chinese HTM from an environmental perspective. By integrating stochastic frontier analysis (SFA) and projection pursuit (PP) based on the real-coded accelerated genetic algorithm (RAGA), this study constructed a RAGA-PP-SFA model that considers undesirable outputs. This model includes various outputs, including environmental pollution, in the production function to improve estimation accuracy. Moreover, to verify the robustness of the estimation results, the results were provided when environmental pollutants were taken as input factors. The results showed that technology introduction could significantly promote HTM’s technical efficiency, while FDI had no significant positive effect. By comparing the estimated results with those that did not consider environmental pollution, this study not only reveals different roles of technology introduction and FDI in improving HTM’s technical efficiency but also confirms that ignoring environmental pollution will overestimate their roles (especially the role of FDI) in such improvement.

Frontier Projects in the Making of from the Everlasting China and its Paradox

Frontier Projects in the Making of from the Everlasting China and its Paradox

Closest target setting for two-stage network system: An application to the commercial banks in China

Traditional data envelopment analysis (DEA) models mainly set the furthest targets as the frontier projection for inefficient decision-making units (DMUs). To achieve the efficient status with less effort, the closest target models are introduced which projected the least input/output improvement for inefficient DMUs. However, these works typically consider each DMU as a “black box” in the closest target setting, and thus these models cannot be directly extended to a system with network structure because there may be no efficient DMU for reference. This paper fills the gap by developing a closest target model for a two-stage system. Instead of constructing the efficient frontier only by the system efficient DMUs in the “black box” system, all the extreme efficient stages of the DMUs are considered to form the closest target for an inefficient DMU. Using our network closest target (NCT) model, a case of the 16 leading commercial banks in China is analyzed. The results show that these commercial banks performed steadily in both efficiency and input/output required improvement during the study period. Moreover, compared with the network furthest target (NFT) model, NCT requires each DMU less improvement on inputs/outputs, and usually obtain the higher efficiency. That is, NCT is more feasible, economical and optimistic. Lastly, we discuss the proportion of each dominating peer referred by the inefficient banks and the importance of these peers is ranked accordingly.

Discipline layout and application guide for earth sciences from leading international science foundations and agencies

According to the principle of being “derived from the logical structure of the knowledge system and promoted through the integration and application of knowledge”, advancement in interdisciplinary research is one of the three core tasks of the deepening reform of the National Natural Science Fund in the new era. This article takes an international vision by first investigating the disciplinary layout and application guide for the field of earth sciences offered by leading international science foundations and agencies including the National Science Foundation, United States (NSF); National Research Foundation of Korea (NRF); Japan Society for the Promotion of Science; Agence Nationale De Le Recherche; Deutsche Forschungsgemeinschaft (DFG); European Research Council; Australian Research Council; Ministry of Business, Innovation & Employment; and National Natural Science Foundation of China (NSFC). These application guides include categories of guidelines, extensive application codes, and subdivided application codes. Compared with the existing hierarchical structure for application codes in the field of earth sciences at NSFC, the feasibility and necessity of promoting the optimization of the disciplinary layout and reform of application codes are discussed. Then, it is proposed that the disciplinary layout should be based on the current conditions as well as the future developmental needs of China and that the optimization of application codes should consider the needs of both application guidance rationality and management applicability. Moreover, the setting of application codes should include self-consistent disciplines; exhibit stable inheritance; and support services, emerging intersections, and national needs. To optimize the disciplinary layout, improve the basic research capabilities, and account for the scale of basic research teams and human management resources, the application codes need to be optimized on the basis of three key factors: Extensive application codes, subdivided application codes, and intelligent assistance. Only in this way can the core mission of science foundation management reforms be fulfilled and the goal of building a science foundation management system with advanced concepts, standardized systems, fairness, and efficiency be achieved. In the future, NSFC should focus on the differences between basic scientific research conducted by large and small countries, pay more attention to balanced development in the discipline layout, develop basic general research, and comprehensively promote the growth of the earth science fund. During the past two years, under the guidance of clear, overall strategic planning and top-level design, NSFC’s Department of Earth Sciences has deployed multiple major projects by guidelines, such as those for the major basic science projects of the Sichuan-Tibet railway and frontier projects of basic polar science as well as special projects related to 2019-nCoV research, ecological protection and sustainable development of the Yellow River Basin, and deep-time earth science knowledge graphing and knowledge evolution. These established projects have played key roles in enabling NSFC to meet the major national needs and push forward international scientific frontiers. In the future, NSFC should continue to pay significant attention to strategic research and the top-level design of funding deployment. Moreover, the foundation should strengthen the overall consideration of the top-level strategic results of earth sciences and the layout of the science fund. In practice, the focus should be on the promotion of basic scientific research rather than servicing the other needs of different disciplines. By further improving the condensed mechanism and management methods of the major projects of earth sciences, the important role of guidelines in funding effectiveness will be strengthened. This article can provide the necessary international vision and strategic support for the reform of the application codes of NSFC.

Production scale-based two-stage network data envelopment analysis

We develop a new network data envelopment analysis (DEA) approach for two-stage network systems considering a match between the production scale of the substages and the intermediate measure levels. Several explicit production axioms are introduced to build a production possibility set. New models are developed based on the production possibility set and a frontier projection procedure with the production scale matching process. Unlike the existing approach which assumes the intermediate measures are free-setting decision variables, the new envelopment network DEA models project the intermediate measures of a unit using the radial projection technique. Correspondingly, the resulting multiplier network DEA models allow for weight flexibility on the intermediate measures while holding a total value flow equivalence between a unit's two stages. We show that our approach does not suffer the known network DEA pitfalls. It identifies the overall efficiency, divisional efficiencies, and frontier projection using either an envelopment or a multiplier network DEA model, i.e., the primal-dual correspondence holds in our approach. Our approach also avoids uncertainties in determining divisional efficiencies by generating a unique pair of divisional efficiencies for each unit. Additionally, the adoption of the production scale matching process explains clearly the frontier projection procedure from the practical point of view. The proposed approach is illustrated with a numerical example and compared with the existing approaches with a case study of commercial bank branches.

The Epidemiological Characteristics of 1304 Children with Confirmed COVID-19 in Hubei

Background: The outbreak of Coronavirus Disease 2019 (COVID-19) caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2) has wildly spread in Europe and the United States. Local human-to-human-transmission indicates the strong infectivity of SARS-CoV-2 and about 80% of the cluster transmission of COVID-19 occurred in families in China. Children as special population are susceptible to SARS-COV-2 at all ages. The epidemiological characteristics and non-pharmacological interventions of pediatric COVID-19 patients in Hubei by 5 periods according to key events and interventions were discussed.Methods: A retrospective study was conducted on the epidemiological characteristics of pediatric COVID-19 patients in Hubei Province from January to May,2020, including patients’ age, sex, residential location, severity classification, date of onset of symptoms and date of diagnosed.Findings: By 24:00 hours on April 21th, 2020, a total number of 68128 confirmed cases were registered, of which 1304 were pediatric confirmed cases, median age was 9.01 years old (intertitles range:3.43-13.84 years). 756 (57.98%) were male and 548 (42.02%) were female. The number of cases account for 2.68%, 8.67%, 23.85%, 25.08%, 27.07%, 12.65% in neonates, infants, 1-5 years old, 6-10 years old, 11-15 years old and >15 years old respectively.226 (17.33%) were asymptomatic, 637 (48.85%) were mild cases and 396 (30.37%) were moderate cases. There were 42 severe cases and 3 critical cases, accounting for 3.22% and 0.23%.The total rate of confirmed cases is 534 per million in Wuhan and 118 per million in non-Wuhan in children. Thirty patients of severe and critical COVID-19 cases have onset of symptoms before February 12th, 2020 . The average daily rate of pediatric confirmed cases of children in Hubei Province is 0.67 per million (first phase), 2.90 per million (second phase), 4.28 per million (third phase), 0.25 per million (fourth phase),0.04 per million (fifth phase) and 0.03 per million (sixth phase).Statistically significant difference was found in different epidemic phases with a sharp decrease in the fourth phase. Interpretation: The proportion of pediatric COVID-19 is lower than that of adults and people in all ages are susceptible including newborns. Pediatric COVID-19 cases are less severe and the rate of confirmed cases are much lower than those in adults in Hubei. There are four keys points to control the epidemic outbreak quickly in children: 1) The centralized quarantine of patients, which protects children from being infected; 2) The community and city lockdown and the limit of social activity, which protects the elder children; 3) The public intervention, such as wearing face mask and hand hygiene, which protects the infants; 4) The compulsory monitored body temperature to investigate and isolate the potential patients in time. Funding: 1.Tongji hospital of Tongji medical college, Huazhong University of Science and Technology No.XXGZBDYJ0052.Major Special Science and Technology Project of Hubei Province under Grant No. 2020AEA0093.Application foundation frontier project of Wuhan No.2020020601012228Declaration of Interest: All the authors, including Liru Qiu, Yue Zhao, Wenhua Liu, Xi Sun, Pik-to Cheung, Sainan Shu, Yan Hao, Yu Chen, Yan Liu, Menaka Dhuromsingh,Jianhua Zhou, Feng Fang,Qin Ning and Xiaoping Luo declare no competing interests.Ethical Approval: All data analysis in this case were approved by the Ethical Committee of TongjiHospital of Huazhong University of Science & Technology (China) (TJC20200359)

Developing high-performance DIRC detector for the future Electron Ion Collider experiment

The Electron-Ion Collider (EIC) will be the next frontier project of nuclear physics in the United States. It is planned to be built in the Brookhaven National Laboratory (BNL) in close collaboration with Jefferson Lab. One of the key requirement for the EIC central detector is excellent particle identification (PID). A detector using the Detection of Internally Reflected Cherenkov light (DIRC) principle, with a radial size of only 7–8 cm, is a very attractive solution for identification of the hadrons in the final state. The R&D program performed by the EIC PID collaboration (eRD14) is focused on designing a high-performance DIRC (hpDIRC) detector that would extend the momentum coverage well beyond the state-of-the-art 3 standard deviations or more separation of π/K up to 6 GeV/c, e/π up to 1.8 GeV/c, and p/K up to 10 GeV/c. Key components of the hpDIRC detector are a 3-layer compound lens and small pixel-size photo-sensors. This article describes the status of the high-performance DIRC R&D for the EIC detector, with a focus on efforts towards developing and validating the radiation hard 3-layer lens.

Status of the high-performance DIRC detector for the Future Electron Ion Collider experiment

The next frontier project of nuclear physics in the United States will be the Electron-Ion Collider (EIC), planned to be built in the Brookhaven National Laboratory (BNL). Excellent particle identification (PID) is an essential requirement for the EIC central detector. Identification of the hadrons in the final state is critical to study how different quark flavors contribute to nucleon properties. A detector based on the Detection of Internally Reflected Cherenkov light (DIRC) principle, with a radial size of only a few cm, is a perfect solution for those requirements. The R&D program performed by the EIC PID collaboration (eRD14) is focused on designing a high-performance DIRC (hpDIRC) that would extend the momentum coverage well beyond the state-of-the-art 3 standard deviations or more separation of π/K up to 6 GeV/c, e/π up to 1.8 GeV/c, and p/K up to 10 GeV/c. Key components are a special 3-layer compound lens and small pixel-size photo-sensors. This article describes the status of the high-performance DIRC R&D for the EIC detector, with a focus on efforts towards developing and validating the radiation hard 3-layer lens.

중국의 북강항목 추진 현황 및 평가

중국의 북강항목 추진 현황 및 평가

Two-stage additive network DEA: Duality, frontier projection and divisional efficiency

In the previous literature, it is demonstrated that the dual equivalence of multiplier and envelopment models that exists in standard data envelopment analysis (DEA) is not necessarily true for network DEA to derive frontier projection and divisional efficiency. Multiplier network model is often used for computing the divisional efficiency while envelopment network model is often used for identifying the frontier projection for inefficient decision making units (DMUs). In this paper, we show that the duality of standard DEA can be extended to two-stage additive network DEA. We propose an improved golden section method to solve parametric linear multiplier network model. Based on the primal-dual correspondence of parametric linear programming, we subsequently develop envelopment network model in parametric linear form to determine frontier projection and to find divisional efficiency as well.

Electromechanical Decoupling by Porous Aerogel Conducting Polymer

In the field of biointerface electronics, electromechanical decoupling—electrical performance independent of mechanical deformation—can ensure reliability of measured signals, which is critical in stable electrode. Herein, Chen et al. report such a decoupled and stretchable conductive polymer foam.

CAPITAL STRUCTURE AND DYNAMIC PERFORMANCE: EVIDENCE FROM ASEAN-5 BANKS

In today’s dynamic economy, banks should focus on improving their dynamic performance to stay competitive. Using a dataset for the period 2007–2013, this paper evaluates the dynamic performance of ASEAN-5 banks through a data envelopment analysis (DEA) model, called the dynamic slacks-based measure (DSBM) model. The DEA results indicate that banks in Malaysia perform better than those in Singapore, Thailand, Indonesia and the Philippines. Frontier projections through DEA indicate that banks in the ASEAN-5 countries underutilize their long-term assets, resulting in inefficiencies. Furthermore, this study finds that capital structure as a whole is positively related to bank performance.