Value Of Technical Efficiency Research Articles

Stochastic Frontier Model Approach for Measuring Stock Market Efficiency with Different Distributions

The stock market is considered essential for economic growth and expected to contribute to improved productivity. An efficient pricing mechanism of the stock market can be a driving force for channeling savings into profitable investments and thus facilitating optimal allocation of capital. This study investigated the technical efficiency of selected groups of companies of Bangladesh Stock Market that is the Dhaka Stock Exchange (DSE) market, using the stochastic frontier production function approach. For this, the authors considered the Cobb-Douglas Stochastic frontier in which the technical inefficiency effects are defined by a model with two distributional assumptions. Truncated normal and half-normal distributions were used in the model and both time-variant and time-invariant inefficiency effects were estimated. The results reveal that technical efficiency decreased gradually over the reference period and that truncated normal distribution is preferable to half-normal distribution for technical inefficiency effects. The value of technical efficiency was high for the investment group and low for the bank group, as compared with other groups in the DSE market for both distributions in time- varying environment whereas it was high for the investment group but low for the ceramic group as compared with other groups in the DSE market for both distributions in time-invariant situation.

ANALISIS EFISIENSI TEKNIS USAHATANI PADI SAWAH APLIKASI PERTANIAN ORGANIK ( Studi Kasus Di Desa Sumber Ngepoh, Kecamatan Lawang ) Kabupaten Malang MT 2009 – 2010

<p>The application of organic farming on rice farming in Indonesia is still new to know. The farming interested if efficiency economics. The meaning efficiency economics if the technical efficiency. This research aimed to evaluate the performance of organic rice farming systems, focusing on: (1) identifying the range of application of organic farming on rice farming, (2) analyzing the productivity and income from applying organic farming, and (3) analyzing the technical efficiency of applying organic farming and identifying factors that influence it.<br />The study was conducted in Malang Regency with take sample Sumber Ngepoh village, Lawang, Malang. This village is purposively taken because this is only a village in East Java which has obtained a certificate as a producer of organic rice from Organic Certification Agency. Furthermore, farmers did not interested application of organic farming. The sample of farmers 120 respondents selected by using non-proportionate stratified random sampling among those applying organic rice farming. The data are anal<br />The results at the study stage show that there was diversity between implementing organic and agricultural organic farming system. This diversity reached only 8,33 percent application of organic rice farming of the total land area, while the rest was still in the transitional stage of applying organic system. The application of organic rice farming must independently be able to increase production and income of the farmer. <br />Judging from the level of technical efficiency, the application of organic rice farming is generally quite high, above the value of TE (technical efficiency) 0.8, while applying an independent organic farming has higher technical efficiency than others. Determinant of technical efficiency is the practice of Sekolah Lapang or Field School and the independence of farmers in affording resources locally.</p><p>Keywords: Technical efficiency, independence of rice farming system, Organic farming applications.<br /><br /></p>

ANALISIS EFISIENSI TEKNIS USAHATANI PADI SAWAH APLIKASI PERTANIAN ORGANIK ( Studi Kasus Di Desa Sumber Ngepoh, Kecamatan Lawang ) Kabupaten Malang MT 2009 – 2010

The application of organic farming on rice farming in Indonesia is still new to know. The farming interested if efficiency economics. The meaning efficiency economics if the technical efficiency. This research aimed to evaluate the performance of organic rice farming systems, focusing on: (1) identifying the range of application of organic farming on rice farming, (2) analyzing the productivity and income from applying organic farming, and (3) analyzing the technical efficiency of applying organic farming and identifying factors that influence it.<br />The study was conducted in Malang Regency with take sample Sumber Ngepoh village, Lawang, Malang. This village is purposively taken because this is only a village in East Java which has obtained a certificate as a producer of organic rice from Organic Certification Agency. Furthermore, farmers did not interested application of organic farming. The sample of farmers 120 respondents selected by using non-proportionate stratified random sampling among those applying organic rice farming. The data are anal<br />The results at the study stage show that there was diversity between implementing organic and agricultural organic farming system. This diversity reached only 8,33 percent application of organic rice farming of the total land area, while the rest was still in the transitional stage of applying organic system. The application of organic rice farming must independently be able to increase production and income of the farmer. <br />Judging from the level of technical efficiency, the application of organic rice farming is generally quite high, above the value of TE (technical efficiency) 0.8, while applying an independent organic farming has higher technical efficiency than others. Determinant of technical efficiency is the practice of Sekolah Lapang or Field School and the independence of farmers in affording resources locally.<br /><br />Keywords: Technical efficiency, independence of rice farming system, Organic farming applications.<br /><br />

Assessing the Technical Efficiency in Potato Production in Iran

In this paper, the energy requirements of inputs and outputs for potato production were examined. Also in this research, a nonparametric data envelopment analysis (DEA) technique was used to determine the efficiencies of farmers with regard to energy use in potato production activities in Iran. The results indicated that total input energy, total output energy, and energy ratio were 107,674 MJ/ha, 82,463 MJ/ha, and 0.77, respectively. Net energy was negative. Therefore, it can be concluded that in potato production, energy is being lost. The study has helped to segregate efficient farmers from inefficient ones, to identify wasteful uses of energy from different sources by inefficient farmers, and to suggest reasonable savings in energy uses from different sources. DEA optimizes the performance measure of each potato production farm or decision-making unit (DMU). The average values (for all 44 farmers considered) of pure technical efficiency (TE), TE, and scale efficiency were found to be 0.92, 0.74, and 0.81, respectively. On an average, about 36.79% of the total input energy could be saved without reducing the yield from its present level by adopting the recommendations based on the present study.

Analisis Efisiensi Teknis Usaha Penggemukan Sapi Potong di Kabupaten Agam Provinsi Sumatera Barat

The domestic beef cattle producers have supplied only 70 percent of the national need. Demand of the beef cattle has not been accompanied by an increas ing of supply response. One of the major problems in beef cattle farming is its low productivity that might be caused by its low efficiency of input use. Therefore, this study aims are (1) to estimate the factors that influence the production of beef cattle fattening, (2) to analyze the level of technical efficiency of beef cattle fattening. The stochastic production frontier is used to estimate production function. The results showed that quantity of concentrate, dummy of cattle’s age, and dummy of livestock ownership significantly influence production. The average value of the farm technical efficiency is 0.764 ranging from a minimum of 0.478 to a maximum of 0.996.

Research on the Efficiency of Electronic Information Industry in China

The paper analysed the input-output efficiency of electronic information in 30 provinces of China with DEA model. The results show: the comprehensive technical efficiency values of 30 provinces are all low, with the average of 0.649, and the main reason leading to it is the low pure technical efficiency. Only the three provinces of Beijing, Zhejiang and Chongqing are in the high technical efficiency. Most provinces are in the stage of pay scale increasing, so growing scale and investment are the more efficient ways for the electronic information industry in china.

Measuring productive efficiency of horticultural greenhouses in Iran: A data envelopment analysis approach

The objective of this study was to determine energy use efficiency in greenhouse cucumber production using a non-parametric production function. The method used to quantify energy use efficiency or, more specifically, excess input energy used, is data envelopment analysis (DEA). DEA creates a ‘‘best practice’’ production frontier based on the growers that produce their level of cucumber yield with the least amount of input energy. These greenhouses then serve as benchmarks against which the energy use inefficiency of all other growers can be measured. The data used in this study was obtained through a face-to-face questionnaire method in the surveyed region – Yazd province of Iran. The total energy input and energy output were calculated to be 1168023 and 124663 MJ ha −1, respectively. According to this information, the energy productivity was 0.14 kg MJ −1, and net energy value was estimated to be –1043360 MJ ha −1 indicating energy has been lost in greenhouse cucumber production. Basic DEA models (CCR and BCC) were used to measure the technical efficiency of the growers based on seven energy inputs human labor, diesel fuel, FYM, fertilizers, chemicals, water for irrigation and electricity, and a single output included yield of cucumber (kg ha −1). The CCR and BCC models indicated 10 and 25 growers were efficient, respectively. The average values of overall technical efficiency, pure technical efficiency and scale efficiency of growers were found to be 0.8235, 0.9273 and 0.8880, respectively. The results also revealed that about 21% of the total input resources could be saved if the growers follow the input package recommended by the DEA. The maximum contribution to the total energy savings is 53% from diesel fuel, followed by electricity (27%).

Optimization of Energy Consumption of Broiler Production Farms using Data Envelopment Analysis Approach

This study applied a non-parametric method to analyze the efficiency of farmers, discriminate efficient farmers from inefficient ones and to identify wasteful uses of energy in order to optimize the energy inputs for broiler production. Data were collected from 44 broiler farms in six villages in Yazd province (Iran) by using a face-to-face questionnaire performed in January– February 2010 period. The data were collected from 44 broiler farms in six villages from Yazd province, Iran. Average capacity of surveyed farms was 18142 birds. Maximum, minimum and average meat production of farms was 2000, 3000 and 2601 kg (1000bird)-1, respectively. Total energy used in various operations during broiler production was 186885.87 MJ (1000bird)-1. We determined TE (Technical Efficiency), PTE (Pure Technical Efficiency) and SE (Scale Efficiency) of energy use in broiler farms using Data Envelopment Analysis (DEA). Two basic DEA models (CCR and BCC) were used to measure the TEs of the farmers based on five energy inputs and two outputs. The CCR and BCC models indicated 10 and 16 farmers were efficient, respectively. The average values of TE, PTE and SE of farmers were found to be 0.90, 0.93 and 0.96, respectively. The results also revealed that about 11% of the total input resources could be saved if the farmers follow the input package recommended by the DEA.

Associating DEA with grey relational analysis for performance assessment of management competencies in logistic industry

Competency-Based Management is a management model based on competence with main objective to find out and ensure what are competence and behavior needed for excellent performance in the job so as to help an organization or individual to understand how to enhance their work performance. In this article, scores for five different management competencies are summarized from the questionnaire survey, and Data Envelopment Analysis is done respectively on basic information and five management competence scores, so as to understand each self-assessed management competence performance from 128 persons under interview. Then in this article, the technical efficiency values of five management competencies are used for partial grey relational analysis so as to acquire the entire performance of five management competencies and to perform ranking, and it is hoped that person under interview with good and bad entire performance in management competence can be distinguished. Finally in this article, the scores of five management competencies are used as independent variable, and the entire performance of management competence after ranking is used as dependent variable to set up respectively assessment models for three management competencies, namely, Genetic Programming, Bayes’ Method and Logistic Regression Analysis. From the analysis result, it can be seen that the top three rankings in entire performance are respectively number 56, number 34 and number 19 of the person under interview; and the last three rankings are respectively number 79, number 45 and number 124 of person under interview; among three management competence performance assessment models, Genetic Programming model has the best classification assessment model.

Technical efficiency in the fresh fruit and vegetable sector: a comparison study of Italian and Spanish firms

Introduction. Agricultural cooperatives play an important socio-economic role in European (EU) countries, especially in the fresh fruit and vegetable sector. For this reason, in an economic perspective, the measurement of their efficiency has become an area of investi- gation which attracts great interest. Given that Spain and Italy are the biggest producers of fresh fruits and vegetables, the aim of this paper was to recognize the evolution of their technical effi- ciency. Materials and methods. Performance analysis in the economic field is rather contro- versial. Following Parkan (2002), it is possible to classify three main approaches to measure performance: index numbers; frontier methods and the non-parametric approaches. In this paper, efficiency was evaluated by applying the Data Envelopment Analysis (DEA) technique considering two separate frontiers. Through the AIDA database for Italian agricultural coope- ratives and the SABI database for Spanish cooperatives, two different sets of 81 and 106 firms, respectively belonging to the fruit and vegetable sector, were selected over a five-year period (2001-2005). Results. The analysis of the DEA results underlines the higher ability of Italian coo- peratives to calibrate and optimize the inputs, and to maximize the results (technical efficiency), as well as the ability of Spanish cooperatives to exploit scale economies. Conclusions. Over the period taken into consideration, the average value of global technical efficiency decreased for Spanish as well as Italian cooperatives. In the case of Spanish cooperatives, this situation is due to the loss of ability to calibrate and optimize the inputs, even if the considered firms reveal ability to develop scale economies. In the case of Italian cooperatives, the results reveal the subs- tantial firm technical efficiency, even if scale inefficiency undermines the global efficiency. Spain / Italy / fruits / vegetables / cooperatives / economic analysis / efficiency Efficacite technique du secteur des fruits et legumes frais : une etude comparee des societes italiennes et espagnoles.

Analysis of overall technical efficiency, pure technical efficiency and scale efficiency in the medium-sized audit firms

This study uses the data envelopment analysis (DEA) to evaluate the operational efficiency of 173 medium-sized audit firms in 2005. The empirical result indicates that there are 24 audit firms with the overall technical efficiency value of 1. In terms of overall technical efficiency, pure technical efficiency and scale efficiency, the result shows that the average scale efficiency of all samples is higher than the average pure technical efficiency. Besides, 55 firms of 173 audit firms are in the stage of constant returns to scale, 18 firms are in the stage of increasing returns to scale, 100 of them are in the stage of decreasing returns to scale. Thus, most of medium-sized audit firms are in the stage of decreasing returns to scale. In addition, this paper finds that the larger the scale, the higher the above three efficiency values. The audit firms with higher business revenues have better operational efficiency. The overall technical efficiency and sale efficiency of the audit firms with branches are significantly higher than those without branches. The audit firms with larger number of employees and partners, they perform significantly better overall technical efficiency and sale efficiency. Finally, the audit firms with higher total expenditures also have significantly higher operational efficiency.

Measuring relative efficiency of government-sponsored R&D projects: A three-stage approach

Without considering differences in operating environment, traditional methods of efficiency evaluation are suffering from external environmental influences. This study presents an alternative approach for assessing the relative efficiency of government-sponsored research and development projects (GSP). A three-stage approach employing data envelopment analysis to evaluate efficiency and Tobit regression to control external variables was applied to 110 projects over 9 years. This study finds that firm size, industry, and ratio of public subsidy on research and development (R&D) budget of recipient firm significantly influences the technical efficiency of GSP in Taiwan. After controlling these external variables, the mean value of technical efficiency in the third stage increases and becomes significantly different to that in the first stage. Most GSPs increase their returns when their projects are scaled up. Furthermore, government policy makers must establish the upper-limit ratio of subsidies on R&D budgets of recipient firms to avoid inefficient use of public funds.

Funding system of full‐time higher education and technical efficiency: case of the University of Ljubljana

The present paper tackles the issue of the higher education funding system in Slovenia. Its main attribute is that institutions are classified into study groups according to their fields of education, and funds granted by the state are based on their weights or study group factors (SGF). Analysis conducted using data envelopment analysis tested whether members of the University of Ljubljana are classified into groups according to their relative technical efficiency and SGF values are aligned with the relative differences between them. Results confirm the heterogeneity of the study groups, the inappropriate formation of one group, inaccurate classification of institutions and that the SGF values of different study groups are too high relative to the base group.

Peningkatan Efisiensi Variabel-Variabel Kritis pada Unit Gawat Darurat dengan Pendekatan Data Envelopment Analysis

Health represent essential requirement these days. For that on duty in charge have to have yardstick to know efficiency ;level and health service productivity. Measurement of efficiency as productivity index must be done objectively, so that result of measurement can be made input to progress of health of society. Target of research was to make a model assessment of efficiency in order to determination of productivity every health service and determine repair plan to inefficient service. Problem solving used Data model of Envelopment Analysis (DEA) approach. DEA was used to measure productivity and efficiency with input multi and of multi output. With existence of real correct measurement - objective correctness, expected will give instrument to Health department to give satisfaction to wide [of] society. From result of data processing, will be obtained value of technical efficiency for the each Decision Making Unit (DMU) was less efficient, and some repair goals which must reach. Stipulating of peer of group to less efficient DMU will give direction to repair program.

DEA efficiency measurement with undesirable outputs: an application to Taiwan's commercial banks

Non-performing loans (NPLs) after the 1997 Asian financial crisis have been accumulating swiftly in Taiwan as well in for many other Asian economies. A loan always contains an ex ante risk of eventually becoming non-performing. A fair way of measuring the performance of bank should take into account the fact that NPLs are undesirable outputs. This study applies the input-oriented BCC model, which is invariant under the translation of outputs, to measure the efficiency of Taiwan's banks by treating the NPLs as undesirable outputs. Empirical results show that the ranking of technical efficiencies, from the highest to the lowest, lists public, mixed, and private banks and that the average value of technical efficiency of banks established after the industry's deregulation is larger than that of banks established before deregulation.

Measuring Environmental Health Risks: The Negotiation of a Public Right-to-Know Law

Quantitative health risk assessment is a procedure for estimating the likelihood that exposure to environmental contaminants will produce certain adverse health effects, most commonly cancer. One instance of its use has been a California air toxics public “right-to-know” law. This article examines the ways in which credible health risk measurements were produced and challenged during the implementation of the California public policy. Fieldwork and documentary analysis finds that stakeholders negotiated within the formal constraints of the risk assessment procedures but still expressed their competing visions for the implementation of the risk communication policy. The abstract results of the method were contextualized according to different time frames and allocations of uncertainty. Furthermore, the article demonstrates that the political process privileged consistency of measurement over accuracy, revealing political negotiations at a fundamentally technical level. The struggle and variation in interpretations can be explained best by the demand to organize the program around the discordant values of democratic accountability and technical efficiency.

Measuring technical efficiency in the Greek agricultural sector

This paper measures the degree of technical efficiency of Greek farms at discrete points in time. Stochastic frontier production functions are estimated from four annual Farm Accountancy Data Network (FADN) surveys of the 1992–1995 period. From the results, a measure of technical efficiency is calculated for each farm for each year. The four distributions of technical efficiency values are examined and compared. All four samples show a wide range of farm-specific technical efficiency but efficiency is improving over the period. The paper also presents frontier estimates for small and large farms classified according to economic size. In that case, technical efficiency measures are calculated and their distributions are examined and compared. The results show that large farms are more efficient than small farms. However, efficiency is improving in both size farms over the period. In general, the results of this study indicate that there is substantial scope for improving technical efficiency of Greek farms.

農家兼業化が農業生産技術効率性に与える影響に関する計量分析

The objective of this paper is to clarify the relationship between agricultural technical efficiency and part-time farming in rural China. For this objective, an index of the efficiency is calculated for each observation based on the translog frontier production function, using farm household-level cross-section data from Sichuan Province for the year of 1986, 1990, 1993 and 1996, respectively. Then the efficiency index is decomposed by part-time farming and other variables. The main conclusions of this paper are summarized as follows:1) The mean value of technical efficiency lies between 0.83 to 0.87, depending on the year, which implies that the average farm could produce 13% to 17% more output from the same quantity of input, if it operated efficiently.2) Part-time fanning, and area share of cereal cropping are negatively related to the technical efficiency. Multiple cropping index, and family size are positively related to it. Part-time farming not only directly impact on the technical efficiency, but also indirectly impact on it through its influence on multiple cropping index and area share of cereal cropping.Those results suggest that promoting farm land to transfer from part-time farms to full-time farms should increase agricultural technical efficiency. And moreover, in order to reduce the negative influence of part-time farming on the technical efficiency, it should be necessary for government to strengthen agricultural extension service for part-time farms, and/or put more public investment in agricultural infrastructure, research and development of agricultural technology.

Technical Efficiency in Turkey Production

Abstract Technical efficiency of operating input utilization for 165 hen and 200 tom turkey flocks was measured using the Farrell efficient unit isoquant technique. For each sample by sex, flocks were arrayed by whether they fell into the range of increasing (IRS), constant (CRS), or decreasing (DRS) returns to size. Technical efficiency was measured for each flock by IRS, CRS, and DRS group. Results showed all groups to be highly efficient on average, with mean values of technical efficiency ranging from 93.6 to 97.0%. Hypothesis tests for equality of means showed no significant difference between CRS and DRS groups and between CRS and IRS groups for the hen flocks. The CRS group had a significantly smaller mean than the DRS group. For toms, the CRS group had a significantly larger mean than the IRS group and a significantly smaller mean than the DRS group. Grower payment, received per pound of marketable turkey produced, was regressed on the measures of technical efficiency and other identifiable characteristics of the flocks. A 1% increase in technical efficiency resulted in increases of $.0017 and $.0018/pound in grower payments for hen and tom flocks, respectively. At the mean grower payment, this represents increases of $217.42/flock for hens and $407.07/flock for toms. Assuming a 1% increase in efficiency translates into a 1% reduction in contractor operating input production costs, the total benefit from a 1% increase in efficiency was $510.95/flock for hens and $909.96/flock for toms. Hen and tom growers received 43 and 45% of the benefits, respectively. Relationships between some of the other flock characteristics and grower payment were significant, but their independent effects were relatively small.