Relative Technical Efficiency Research Articles

Use of a decision support system for benchmarking analysis and organizational improvement of regional mental health care: Efficiency, stability and entropy assessment of the mental health ecosystem of Gipuzkoa (Basque Country, Spain)

Decision support systems are appropriate tools for guiding policymaking processes, especially in mental health (MH), where care provision should be delivered in a balanced and integrated way. This study aims to develop an analytical process for (i) assessing the performance of an MH ecosystem and (ii) identifying benchmark and target-for-improvement catchment areas. MH provision (inpatient, day and outpatient types of care) was analysed in the Mental Health Network of Gipuzkoa (Osakidetza, Basque Country, Spain) using a decision support system that integrated data envelopment analysis, Monte Carlo simulation and artificial intelligence. The unit of analysis was the 13 catchment areas defined by a reference MH centre. MH ecosystem performance was assessed by the following indicators: relative technical efficiency, stability and entropy to guide organizational interventions. Globally, the MH system of Gipuzkoa showed high efficiency scores in each main type of care (inpatient, day and outpatient), but it can be considered unstable (small changes can have relevant impacts on MH provision and performance). Both benchmark and target-for-improvement areas were identified and described. This article provides a guide for evidence-informed decision-making and policy design to improve the continuity of MH care after inpatient discharges. The findings show that it is crucial to design interventions and strategies (i) considering the characteristics of the area to be improved and (ii) assessing the potential impact on the performance of the global MH care ecosystem. For performance improvement, it is recommended to reduce admissions and readmissions for inpatient care, increase workforce capacity and utilization of day care services and increase the availability of outpatient care services.

The critical factor: The role of quality in the performance of supported accommodation services for complex mental illness in England.

Rehabilitation services have a key role in ensuring integrated and comprehensive mental health (MH) care in the community for people suffering from long-term and severe mental disorders. MH-supported accommodation services aim to promote service users' autonomy and independence. Given the complexity associated with MH-supported accommodation services in England, a comparative evaluation of critical performance indicators, including service provision and quality of care, seems to be necessary in designing evidence-informed policies. This study aims to explore the influence of service quality indicators on the performance of MH-supported accommodation services in England. The analysed sample includes supported accommodation services from 14 nationally representative local authorities in England from the QuEST study grouped by three main types of care: residential care homes (divided into two subgroups: move-on and non-move-on oriented), supported housing and floating outreach. EDeS-MH (efficient decision support-mental health) was used to assess the performance indicators for the selected services by combining a Monte Carlo simulation engine, data envelopment analysis and a fuzzy inference engine for integrating expert knowledge. Depending on the type of care, six/seven quality domains were sequentially included after a baseline scenario (only technical) was analysed. Relative technical efficiency scores for the baseline scenarios revealed high performance in all the selected supported accommodation services, but the statistical variability was high. Quality domains significantly improved performance in every type of care. The inclusion of quality indicators has a positive impact on the global performance of each type of care. Remaining at the corresponding services more than expected for two years has a negative impact on performance. These findings can be considered from a planning perspective to facilitate the design of pathways of care with more realistic expectations about gaining autonomy in two years.

An Economic Analysis of Technical Efficiency of MSMEs in India

Micro, small and medium enterprises (MSMEs) have been the lifeline of the Indian economy. The sector draws significant importance in terms of employment, production, income and export. This is a labour-intensive sector and creates large employment opportunities in India. The sector has the capacity to reduce regional imbalance through income and employment generation and attain self-reliance. After new economic reforms, they have been facing tough competition. The nature of performance and efficiency of the MSMEs are needed to improve to face the competition in the market. This article analyses relative technical efficiencies of registered and unregistered MSMEs of states and union territories in India. Data envelopment analysis (DEA) technique is used to estimate the technical efficiency of the MSMEs. It is a state-wise analysis. This study shows some significant results of the performance and efficiency of MSMEs in India.

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.

Evaluating the efficiency of fiscal responses to COVID-19 pandemic in the OECD countries: a two-stage data envelopment analysis approach

This study examines the relative technical efficiency (TE) of the fiscal stimulus packages introduced by the governments of 38 OECD countries in response to COVID-19 pandemic, using a two-stage data envelopment analysis (DEA) approach. The DEA results indicate that OECD countries are inefficient as they have the potential to save around 54.8% of their fiscal packages while maintaining the same performance in terms of economic growth and unemployment. Costa Rica, Greece, Ireland, Italy, Mexico, and Turkey are found to be fully efficient whereas Canada, Germany, Japan, the USA, and the UK are found to be the least efficient. The Tobit findings indicate that belonging to the EU, public expenditure on education, and population density, are positively correlated to the TE scores. In contrary, general government final consumption expenditure, size of fiscal stimulus packages, and COVID-19 infections rate tend to affect efficiency negatively.

Assessing rice production efficiency for food security policy planning in Malaysia: A non-parametric bootstrap data envelopment analysis approach

The 2007–2008 international food crisis triggered national food security policies of several countries worldwide, creating a problematic situation in the global food landscape and led to a drastic shift in the national food security policy (NFSP) approaches undertaken by affected countries. In this context, agricultural policies were reformulated to focus on achieving a certain degree of self-sufficiency while obtaining agricultural efficiency and sustainable agricultural development. This study empirically evaluated Malaysian rice self-sufficiency (RSS) approach, focusing on production efficiency closely related to maximizing production approach and minimizing environmental impact. We utilized non‑parametric bootstrap data envelopment analysis (DEA), input- and output specifications to estimate the relative technical efficiency scores of decision‑making units (DMUs) by constructing confidence intervals and correcting efficiency estimations. Our finding reveals that the Malaysian RSS policy approach demonstrates a better orientation toward output maximization than resource saving. However, the average annual change of the efficiency scores in both specifications was found to deteriorate during the analyzed period. Based on regional analysis, an improved RSS strategic approach could help the nation attain rice production maximization, minimize the environmental impacts, and obtain production efficiency mainly through modernizing the irrigation systems, efficient agrochemical inputs usage, adopting best agricultural practices, and implementing soil treatments programs.

Data Envelopment Analysis and Malmquist Index Application: Efficiency of Primary Health Care in Morocco and Covid-19

The Primary Health Care in Morocco plays a very strategic role in the prevention against various diseases, in particular the current pandemic COVID 19. The efficiency of these centers has a direct impact on the reduction of this pandemic. First, this is why will try to research the literature review about the technical efficiency of primary health care. In the second step, the non-parametric: Data Envelopment Analysis method will be used to apply the empiric phase during the period 2012-2015, to estimate the relative technical efficiency, this method will be calculated by using two models: the theory of the return to scale constant with a middle equal to 0.437 and the theory of the variable return to scale with an average of 0.537. It’s necessary to combine the DEA approach with the Malmquist index to evaluate the factors of production. Finally, to compare the results of the proposed method which are generally very poor, and discuss his policy implications for health care.

Regional innovation systems efficiency analyses and evaluation: DEA approach implementation

The innovative transformation is a necessary condition for sustainable economic development. The study reveals an assessment and comparative analysis of the Regional Innovation Systems’ (RIS) performance in the Russian Federation using Data Envelopment Analysis (DEA). The DEA model under the Variable Return to Scale (VRS) assumption, focused on output parameters, is used to estimate the relative technical efficiency of regions based on several input and output parameters. Based on the obtained results, a rating of regions was compiled: four groups of regions were identified depending on their technical efficiency level. It was revealed that the leading regions by innovative development level are assessed by the DEA somewhat differently. A comparative analysis of the innovation systems performance at the regional and federal levels allowed us to identify the most and least effective subjects of the Russian Federation, federal districts and economic regions. The main conclusion is that less than a third of the Russian regions use their production capabilities as efficient as possible, the remaining regions can significantly improve the way they use the available resources. The results of the study might be used in making managerial decisions at the country, federal districts and regions levels in order to develop measures and mechanisms for improving the efficiency of regional innovation systems.

A eficiência técnica nos investimentos no setor de saúde: um estudo na região metropolitana do Vale do Paraíba e litoral norte de São Paulo

O presente estudo tem como objetivo investigar a eficiência técnica da alocação de recursos públicos nos serviços de saúde, tomando como referência a Região Metropolitana do Vale do Paraíba e Litoral Norte de São Paulo. Para avaliar a eficiência técnica do setor de saúde foram selecionadas variáveis que representaram os recursos alocados (inputs) e os serviços oferecidos à sociedade (outputs). A mensuração da eficiência foi realizada por intermédio da Análise Envoltória de Dados, com a utilização do modelo clássico de retornos variáveis com orientação produto. A fronteira de eficiência obtida não busca fornecer um padrão rígido de eficiência para a saúde, mas uma forma de verificar o quanto a região poderia produzir se mantido o atual investimento. Os resultados demonstraram que 50% dos municípios analisados apresentaram eficiência técnica relativa de 100% e o índice médio alcançado na região foi de 87,7%. A pesquisa evidenciou, ainda, que para uma cidade da amostra alcançar a fronteira de eficiência técnica não precisa necessariamente realizar maiores investimentos.

The total sporting arms race: benchmarking the efficiency of public expenditure on sports in EU countries

ABSTRACT Research question The goal of this research is to determine patterns and evolution of relative technical efficiency, as well as its role in changes of total factor productivity of the public spending on sports in EU member countries. Research methods An input-oriented, variable returns to scale model of data envelopment analysis and Malmquist productivity index are applied. They involve two outputs (mass participation in sport and elite sport successes), and two inputs (public and households’ spending on sports). Results and Findings The technical efficiency across EU countries shows a clear heterogeneity and volatility. Aside from six to seven efficient countries in each time period, other countries register a continuum of inefficiency scores, down to 0.08–0.20, which is indicative of important potential savings in public spending. From a time perspective, five patterns of efficiency and productivity evolution are identified. The common phenomenon is a deterioration of production possibilities which is not offset by rising managerial efficiency. Implications The study contributes to the comparative research of sport systems in Europe. Its results may enable peer learning and inform future initiatives, both at the national level and in the framework of the emerging European sport policy. In particular, the study indicates benchmark countries for each inefficient country, which is an interesting start for further qualitative exploration for both researchers and policy makers.

ANALYSING THE TECHNICAL EFFICIENCY OF GENERAL TAKAFUL INDUSTRY IN MALAYSIA: A NON-PARAMETRIC APPROACH

This paper aims to examine the technical efficiency level of the general takaful operators in Malaysia from 2013 to 2017. The focus on the general takaful industry is made after taking into account the recent regulatory developments, i.e. phased liberalisation of motor and fire tariff, and Islamic Financial Services Act 2013 (IFSA 2013) - conversion of composite license to single licenses. This paper employs Data Envelopment Analysis (DEA) and Malmquist Productivity Index (MPI) in order to measure the relative technical efficiency and the total factor productivity (TFP) change of eight general takaful operators in Malaysia respectively. The findings suggest that the main source of inefficiency of the general takaful operators in Malaysia is scale inefficiency, rather than managerial inefficiency. Meanwhile, technological regress has dampened the TFP growth of the general takaful industry in Malaysia. Therefore, it suggested the general takaful operators improve their productivity by improving their technical innovation.Keywords: General takaful, Data Envelopment Analysis (DEA), Malmquist Productivity Index, efficiency

Measuring performance of government-supported drug warehouses using DEA to improve quality of drug distribution

PurposeDrug warehouses (DWs) play a crucial role in drug distribution of government-supported healthcare supply chain as it controls both the cost and responsiveness of the logistics activities. The current study proposes a methodology using data envelopment analysis (DEA) to estimate the performance along different dimensions and was applied to 30 government-supported DWs.Design/methodology/approachThis study employs DEA to evaluate the performance and relative technical efficiency of DWs. In this research, four inputs and six outputs are identified based on intensive literature review and discussion with all stakeholders of DWs. The inputs are warehouse storage capacity, temperature-controlled storage capacity, number of skilled employees and operational cost, while the outputs are fill rate, number of generic drugs, volume of drugs, consumption points, inventory turns ratio and time efficiency.FindingsResults show that 30% DWs operate at the most productive scale size with 100% efficiency level while 47% DWs have a significant possibility for further enhancement in productive efficiency and 23% DWs should diminish their operational size to increase their productivity level. It was also found that achieving 100% operational productivity along warehouse space capacity needs significant effort, whereas other three inputs, namely temperature-controlled capacity, number of skilled employees and operational cost, require comparatively less effort. Similarly, it was observed that the performance along the fill rate and time efficiency is satisfactory, whereas the performance along other fours output variables (i.e. number of generic drugs, volume of drugs, consumption points and inventory turns ratio) needs to be improved.Practical implicationsThe findings offer insights on the inputs and outputs that significantly contribute to efficiencies so that inefficient DWs can focus on these factors.Originality/valueAlthough many issues related to DEA have been widely researched and reported, but no literature has been found for analysis of DWs in general and government-supported DWs specifically to find out efficiencies for supply chain performance improvement.

Measuring the economic performance of mixed crop-livestock farming systems in Egypt: A non-parametric DEA approach

This study examines the relative technical efficiency of mixed crop-livestock farming systems and assesses their economic performance between the Upper and Delta regions of Egypt. A non-parametric data envelopment analysis (DEA) method is empirically applied for measuring technical efficiency using farm-level data for 838 mixed crop-livestock farmers. The findings show that the mixed crop-livestock farms in Egypt are operating at a low level of technical efficiency, indicating most farms are unable to catch up with the current production frontier and existing production technologies. Farms in the Delta region perform slightly better than those farms in Upper Egypt. Results also suggest that technical efficiency improvement is positively affected by farmers’ education, having a farm milk production certificate, and being located in the Delta region, whereas farm size negatively affects the economic performance of mixed crop-livestock farming systems in Egypt. ,,

Relative Technical Efficiency of Life Insurance Companies DEA and Interval DEA Methods

Insurance industries in India have taken a huge shape especially after privatization and introduction of Insurance Regulatory & Development Authority (IRDA). It plays an vital role in the growth of financial sector in all developed and developing countries. Insurance may be a sort of risk management and primarily used hedge against the danger of a contingent or uncertain loss. In this paper the author analyses the relative efficiency of life insurance companies in India using DEA and Interval Data Envelopment Approach (Interval DEA). DEA is a non parametric linear programming problem used for measuring the relative efficiency of decision making units (DMU) which utilize several identical inputs to produce a set of identical outputs. Interval DEA model is used in efficiency measurement of the life insurance companies under imprecise inputs and outputs. The empirical results of the conventional DEA models and Interval DEA models are computed to trace the performance of decision making unit at a possibility level.

The differentiation of economic efficiency within employee-owned companies

Background: The empirical research on the differentiation of economic efficiency within em­ployee-owned companies as measured in terms of sales revenue while minimizing the degree of ownership concentration thematically applies toward evaluating the effectiveness of the direct privatisation method implemented by giving a state-owned enterprise for use against payment.
 Research purpose: The main goal of this article is to empirically verify the research hypothesis, stating that the degree of ownership concentration significantly differentiates the economic effi­ciency of employee-owned companies in terms of sales revenue.
 Methods: The empirical verification of this hypothesis was carried out using the method of Data Envelopment Analysis (DEA), which measures the relative technical efficiency of a given deci­sion-making unit (DMU). Empirical studies were conducted on a group of 13 employee-owned companies from the Mazowieckie Province, which concluded agreements with the State Treasury between the years 2000–2005 and covered a 10-year research period. The analysis of sales reve­nue and the degree of ownership concentration was made on the basis of hand-collected data from documents submitted by surveyed employee-owned companies in the National Court Register in the years between 2002–2017.
 Conclusions: Presented results of the empirical research do not allow for full confirmation of the research hypothesis because employee-owned companies, in which DEA efficiency measures were lower than the average measure for all surveyed companies were characterized by the differ­ent average annual degree of ownership concentration.

The impact of the economic crisis on the (in)efficiency of public Higher Education institutions in Southern Europe: The case of Spanish universities

The evaluation of university efficiency in Europe began timidly when the European Higher Education Area (EHEA) was created. However, this issue is currently becoming increasingly important in Southern European countries, where the limitation of public funding following the economic crisis in 2008 has put greater pressure on their public universities to achieve excellence and improve competitiveness. In this context, the goals of this paper are: first, to measure the relative technical (in)efficiency of Spanish public Higher Education Institutions in the period 2002–03 to 2012–13, comparing the situation before and during the last economic crisis; and, second, to analyze the determinants of university (in)efficiency and, especially, the direct impact of the crisis. After applying the two-stage double bootstrap DEA methodology, the results show that Spanish public universities have become more efficient during the crisis than before it. In fact, the regression analysis confirms that the “crisis” variable has had a statistically significant positive impact on university efficiency. We also find that age has favorably influenced how these institutions utilize their resources to produce teaching and research outputs, but technical specialization has had a negative effect. Moreover, the regional location of public universities has been also a crucial determinant of their efficiency level. Our findings are therefore relevant for political and academic decision-makers in order to know if public universities have been adequately managed in the crisis period and to identify factors that could improve their efficiency, and hence to help them to enhance their international competitiveness in the future.

Application of a robust data envelopment analysis model for performance evaluation of electricity distribution companies

PurposeThis study evaluates the efficiency and productivity change of 39 electricity distribution companies in Iran over the period 2005-2014. For purposes of electricity management and utilization of scarce resources, Iran’s 33 provinces have been classified into five regions by the Ministry of the Interior. Analyzing the efficiency of distribution companies across these regions yields significant understanding of these resources and helps policymakers to generate more informed decisions.Design/methodology/approachThe proposed method of this study develops nonparametric data envelopment analysis (DEA) with the consideration of geographic classification, size and type of company. At the first stage, a DEA model is used to estimate the relative technical efficiency and productivity change of these companies. At the second stage, distributions of efficiency improvements are examined based on geographic classification, size and type of the company type. A stability test is also conducted to verify the proposed model’s robustness.FindingsThe results demonstrate that the average technical efficiency of the companies increased during the years 2006-2009, but decreased during 2010-2014. The productivity measurement reveals that low efficiency change was the largest contributor to the small increase in productivity change rather than technology change. In addition, testing the hypothesis that the large and small companies have statistically the same efficiency scores revealed no statistical difference among them. Moreover, another test did not detect a difference among companies at the urban and provincial levels.Practical implicationsBy applying this approach, policymakers and practitioners in the power industry at the country and corporate level can effectively compare the efficiency and productivity changes among electricity distribution companies, and therefore generate more informed decisions.Originality/valueThe paper’s novel concept applies DEA to Iran’s electricity distribution companies and analyzes them by examining geographic classification, size and the type of the companies. In addition, a stability test is conducted and productivity changes are estimated.

Data envelopment analysis applications in primary health care: a systematic review.

Strategic management of primary health care centres is necessary for creating an efficient global health care system that delivers good care. To perform a systematic literature review of the use of data envelopment analysis in estimating the relative technical efficiency of primary health care centres, and to identify the inputs, outputs and models used. PubMed, MEDLINE Complete, Embase and Web of Science were searched for papers published before the 25 March 2019. Of a total of 4231 search results, 54 studies met the inclusion criteria. The identified inputs included personnel costs, gross expenditures, referrals and days of hospitalization, as well as prescriptions and investigations. Outputs included consultations or visits, registered patients, procedures, treatments and services, prescriptions and investigations. A variety of data envelopment analysis models used was identified, with no standard approach. Data envelopment analysis extends the scope of tools used to analyse primary care functioning. It can support health economic analyses when assessing primary care efficiency. The main issues are setting outputs and inputs and selecting a model best suited for the range of products and services in the primary health care sector. This article serves as a step forward in the standardization of data envelopment analysis, but further research is needed.

Empirical Study of the Performance of Ontario’s Pulp and Paper Mills Using Bootstrap Data Envelopment Analysis

Ontario's pulp and paper mills have been facing extreme competitive pressures due to declining markets and low-cost competition from around the world, which have affected their performance and relative technical efficiency. This study uses a non-parametric technique, bootstrap data envelopment analysis, in analysing the operational efficiency of 23 pulp and paper mills in Ontario with sample data collected over a period of 17 years (1999 to 2015). The results indicate low levels of efficiencies due to the management of operations as well as the scale of operations, especially during the economic downturns. In addition, we noticed regional differences in the operational efficiencies of these mills. These results provide comprehensive details to mill managers to reallocated future resources.

Efficiency measurement of Ontario's sawmills using bootstrap data envelopment analysis

AbstractSawmills in Ontario are an important forest products industry, contributing to the economic prosperity of the entire province. However, these sawmills have been facing extreme competitive pressures, impacting their operational efficiency. This study uses a nonparametric technique, the bootstrap data envelopment analysis, to analyse the relative efficiencies of 125 Ontario sawmills over a period of 17 years (1999 to 2015). The results indicate low levels of overall technical and managerial efficiencies in Ontario sawmills, which have been further impacted by economic downturns. Further analysis reveals that the size of the sawmills has had a statistically significant impact on their relative technical efficiencies. The main source of inefficiency was the management of operations, particularly when these sawmills were not able to adjust their inputs with changing and uncertain market demand conditions. These results provide policymakers and sawmill managers with comprehensive details so that future resources can be reallocated to improve the performance of the Ontario forest products industry.