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1 – 10 of 218
Open Access
Article
Publication date: 27 August 2020

Heba Nassar, Hala Sakr, Asmaa Ezzat and Pakinam Fikry

This paper aims to evaluate the technical efficiency of the health-care systems in 21 selected middle-income countries during the period (2000–2017) and determine the source of…

3063

Abstract

Purpose

This paper aims to evaluate the technical efficiency of the health-care systems in 21 selected middle-income countries during the period (2000–2017) and determine the source of inefficiency whether it is transient (short run) or persistent (long run).

Design/methodology/approach

The study uses the stochastic frontier analysis technique through employing the generalized true random effects model which overcomes the drawbacks of the previously introduced stochastic frontier models and allows for the separation between unobserved heterogeneity, persistent inefficiency and transient inefficiency.

Findings

Persistent efficiency is lower than the transient efficiency; hence, there are more efficiency gains that can be made by the selected countries by adopting long-term policies that aim at reforming the structure of the health-care system in the less efficient countries such as South Africa and Russia. The most efficient countries are Vietnam, Mexico and China which adopted a social health insurance that covers almost the whole population with the aim of increasing access to health-care services. Also, decentralization in health-care has assisted in adopting health-care policies that are suitable for both the rural and urban areas based on their specific conditions and health-care needs. A key success in the implementation of the adopted long-term policies by those countries is the continuous monitoring and evaluation of their outcomes and comparing them with the predefined targets and conducting any necessary modifications to ensure their movement in the right path to achieve their goals.

Originality/value

Although several studies have evaluated the technical efficiency both across and within countries using non-parametric (data envelopment analysis) and parametric (stochastic frontier analysis) approaches, to the best of the authors’ knowledge, this is the first attempt to evaluate the technical efficiency of selected middle-income countries during the period (2000–2017) using the generalized true random effects stochastic frontier analysis model.

Details

Review of Economics and Political Science, vol. 5 no. 4
Type: Research Article
ISSN: 2356-9980

Keywords

Open Access
Article
Publication date: 5 June 2020

Ricardo Terranova Favalli, Alexandre Gori Maia and Jose Maria Ferreira Jardim da Silveira

This paper aims to evaluate the relation between governance and financial efficiency of credit unions in Brazil. The study shows how poor financial efficiency in credit unions may…

1497

Abstract

Purpose

This paper aims to evaluate the relation between governance and financial efficiency of credit unions in Brazil. The study shows how poor financial efficiency in credit unions may result from undesirable configurations in executive management and other variables related to governance.

Design/methodology/approach

The study develops an innovative methodology to classify credit unions according to the level of governance using indicators of representativeness and participation, leadership, management and supervision. This methodology integrates the use of multiple correspondence and cluster analysis. The study then applies stochastic frontier models to analyze how governance affects the indicators of financial efficiency.

Findings

The results highlight that better governance substantially increases the efficiency of credit unions in terms of a higher level of credit operations per institution.

Originality/value

The paper uses a pioneering survey applied by the Central Bank to almost the total population of credit unions in Brazil. The results highlight how to operationalize a subjective and broad concept related to cooperative governance to identify the remarkable impacts of good governance practices on the financial efficiency of credit unions.

Details

RAUSP Management Journal, vol. 55 no. 3
Type: Research Article
ISSN: 2531-0488

Keywords

Open Access
Article
Publication date: 19 June 2023

Ane Elixabete Ripoll-Zarraga

The Spanish airport system contains several regional airports within an amenity distance and alternative travel modes. Profitable airports cross-subsidise small airports, which…

Abstract

Purpose

The Spanish airport system contains several regional airports within an amenity distance and alternative travel modes. Profitable airports cross-subsidise small airports, which are not required for regional development or connectivity. Airports are government-owned and centralised-managed by Spanish Airports and Air Navigation (AENA, for its Spanish acronym). This study aims to analyse the probability of an under-used public infrastructure and the AENA’s managerial ability as per the financial sustainability of the network in the long term.

Design/methodology/approach

The national regulatory framework determines the airports’ environment. Six airports revealed unobserved heterogeneity, avoiding model misspecification. The framework is defined through proxies of the singularities of the Spanish framework: public investments and geographical specifications. The stochastic frontier analysis model follows two time-varying specifications, accounting for airports’ environmental factors, to ensure the robustness of the results to differ from the inefficiency caused by AENA and external factors.

Findings

Airports’ infrastructure capacity and traffic are not correlated; regional airports become a financial burden for the system unless they specialise or differentiate. Proxies defining the airports’ context are relevant. Because airports do not compete for airlines and passengers, there are too many regional airports with little traffic, resulting in disused public infrastructure that falls far short of improving connectivity and regional development.

Originality/value

This study contributes to paying attention to the characteristics of the regulatory framework, such as management strongly centralised in AENA, airport charges decided by the owner, lack of competition and lack of an independent regulatory entity. Another original contribution considers reliable capital measures (airports’ infrastructure).

Details

Journal of Economics, Finance and Administrative Science, vol. 28 no. 55
Type: Research Article
ISSN: 2218-0648

Keywords

Open Access
Article
Publication date: 31 August 2015

Yau Weng Loh and Tae Seung Kim

In the single-cargo market, the ordinary market share analysis method has been the representative tool for revealed competitiveness analysis. This paper develops and employs an…

Abstract

In the single-cargo market, the ordinary market share analysis method has been the representative tool for revealed competitiveness analysis. This paper develops and employs an applied market share index called the additive market share (AMS). Data are collected from 8 major ports for the 2001-2013 period. In comparison to the results of an ordinary market share analysis, there has been some fluctuation of the role of the Port of Singapore as the regional hub port though it still maintain its position. There are substitutable relationships between Singapore and the Malaysian ports in Malacca Strait. In Malacca Strait, Port Klang still leads the market in spite of the construction of PTP.

Details

Journal of International Logistics and Trade, vol. 13 no. 2
Type: Research Article
ISSN: 1738-2122

Keywords

Open Access
Article
Publication date: 2 December 2016

Taylor Boyd, Grace Docken and John Ruggiero

The purpose of this paper is to improve the estimation of the production frontier in cases where outliers exist. We focus on the case when outliers appear above the true frontier

2629

Abstract

Purpose

The purpose of this paper is to improve the estimation of the production frontier in cases where outliers exist. We focus on the case when outliers appear above the true frontier due to measurement error.

Design/methodology/approach

The authors use stochastic data envelopment analysis (SDEA) to allow observed points above the frontier. They supplement SDEA with assumptions on the efficiency and show that the true frontier in the presence of outliers can be derived.

Findings

This paper finds that the authors’ maximum likelihood approach outperforms super-efficiency measures. Using simulations, this paper shows that SDEA is a useful model for outlier detection.

Originality/value

The model developed in this paper is original; the authors add distributional assumptions to derive the optimal quantile with SDEA to remove outliers. The authors believe that the value of the paper will lead to many citations because real-world data are often subject to outliers.

Details

Journal of Centrum Cathedra, vol. 9 no. 2
Type: Research Article
ISSN: 1851-6599

Keywords

Open Access
Article
Publication date: 22 September 2020

Hung T. Nguyen

While there exist many surveys on the use stochastic frontier analysis (SFA), many important issues and techniques in SFA were not well elaborated in the previous surveys, namely…

4532

Abstract

Purpose

While there exist many surveys on the use stochastic frontier analysis (SFA), many important issues and techniques in SFA were not well elaborated in the previous surveys, namely, regular models, copula modeling, nonparametric estimation by Grenander’s method of sieves, empirical likelihood and causality issues in SFA using regression discontinuity design (RDD) (sharp and fuzzy RDD). The purpose of this paper is to encourage more research in these directions.

Design/methodology/approach

A literature survey.

Findings

While there are many useful applications of SFA to econometrics, there are also many important open problems.

Originality/value

This is the first survey of SFA in econometrics that emphasizes important issues and techniques such as copulas.

Details

Asian Journal of Economics and Banking, vol. 4 no. 3
Type: Research Article
ISSN: 2615-9821

Keywords

Open Access
Article
Publication date: 2 December 2016

Juan Aparicio

The purpose of this paper is to provide an outline of the major contributions in the literature on the determination of the least distance in data envelopment analysis (DEA). The…

2167

Abstract

Purpose

The purpose of this paper is to provide an outline of the major contributions in the literature on the determination of the least distance in data envelopment analysis (DEA). The focus herein is primarily on methodological developments. Specifically, attention is mainly paid to modeling aspects, computational features, the satisfaction of properties and duality. Finally, some promising avenues of future research on this topic are stated.

Design/methodology/approach

DEA is a methodology based on mathematical programming for the assessment of relative efficiency of a set of decision-making units (DMUs) that use several inputs to produce several outputs. DEA is classified in the literature as a non-parametric method because it does not assume a particular functional form for the underlying production function and presents, in this sense, some outstanding properties: the efficiency of firms may be evaluated independently on the market prices of the inputs used and outputs produced; it may be easily used with multiple inputs and outputs; a single score of efficiency for each assessed organization is obtained; this technique ranks organizations based on relative efficiency; and finally, it yields benchmarking information. DEA models provide both benchmarking information and efficiency scores for each of the evaluated units when it is applied to a dataset of observations and variables (inputs and outputs). Without a doubt, this benchmarking information gives DEA a distinct advantage over other efficiency methodologies, such as stochastic frontier analysis (SFA). Technical inefficiency is typically measured in DEA as the distance between the observed unit and a “benchmarking” target on the estimated piece-wise linear efficient frontier. The choice of this target is critical for assessing the potential performance of each DMU in the sample, as well as for providing information on how to increase its performance. However, traditional DEA models yield targets that are determined by the “furthest” efficient projection to the evaluated DMU. The projected point on the efficient frontier obtained as such may not be a representative projection for the judged unit, and consequently, some authors in the literature have suggested determining closest targets instead. The general argument behind this idea is that closer targets suggest directions of enhancement for the inputs and outputs of the inefficient units that may lead them to the efficiency with less effort. Indeed, authors like Aparicio et al. (2007) have shown, in an application on airlines, that it is possible to find substantial differences between the targets provided by applying the criterion used by the traditional DEA models, and those obtained when the criterion of closeness is utilized for determining projection points on the efficient frontier. The determination of closest targets is connected to the calculation of the least distance from the evaluated unit to the efficient frontier of the reference technology. In fact, the former is usually computed through solving mathematical programming models associated with minimizing some type of distance (e.g. Euclidean). In this particular respect, the main contribution in the literature is the paper by Briec (1998) on Hölder distance functions, where formally technical inefficiency to the “weakly” efficient frontier is defined through mathematical distances.

Findings

All the interesting features of the determination of closest targets from a benchmarking point of view have generated, in recent times, the increasing interest of researchers in the calculation of the least distance to evaluate technical inefficiency (Aparicio et al., 2014a). So, in this paper, we present a general classification of published contributions, mainly from a methodological perspective, and additionally, we indicate avenues for further research on this topic. The approaches that we cite in this paper differ in the way that the idea of similarity is made operative. Similarity is, in this sense, implemented as the closeness between the values of the inputs and/or outputs of the assessed units and those of the obtained projections on the frontier of the reference production possibility set. Similarity may be measured through multiple distances and efficiency measures. In turn, the aim is to globally minimize DEA model slacks to determine the closest efficient targets. However, as we will show later in the text, minimizing a mathematical distance in DEA is not an easy task, as it is equivalent to minimizing the distance to the complement of a polyhedral set, which is not a convex set. This complexity will justify the existence of different alternatives for solving these types of models.

Originality/value

As we are aware, this is the first survey in this topic.

Details

Journal of Centrum Cathedra, vol. 9 no. 2
Type: Research Article
ISSN: 1851-6599

Keywords

Open Access
Article
Publication date: 23 August 2019

Jose F. Baños, Ana Rodriguez-Alvarez and Patricia Suarez-Cano

This paper aims to model the efficiency of labour offices belonging to the public employment services (PESs) in Spain using a stochastic matching frontier approach.

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Abstract

Purpose

This paper aims to model the efficiency of labour offices belonging to the public employment services (PESs) in Spain using a stochastic matching frontier approach.

Design/methodology/approach

With this aim in mind, the authors apply a random parameter model approach to control for observed and unobserved heterogeneity.

Findings

Results indicate that when the information criteria of the estimates are analysed, it improves by controlling both, observed and unobserved heterogeneity in the inefficiency term. Also, results suggest that counsellors improve the productivity of labour offices and that the share of unemployed skilled persons, unemployed persons aged 44 or younger, as well as the share of unemployed persons in the construction sector, all affect the technical efficiency of PESs offices.

Originality/value

The model extends the previous specifications in the matching literature that capture only observed heterogeneity. Moreover, as far as the authors know, it is the first paper that estimates a matching frontier for the Spanish case. Finally, the database they use is at the office level and includes the work carried out by counsellors, which is a novelty in the analysis of this type of studies at the Spanish level.

Details

Applied Economic Analysis, vol. 27 no. 81
Type: Research Article
ISSN: 2632-7627

Keywords

Open Access
Article
Publication date: 4 September 2018

Munshi Naser Ibne Afzal, Kasim Mansur and Umme Humayara Manni

The entrepreneurial capability (EC) environment refers to the general social and economic settings of a given local/regional entrepreneurship environment. The primary purpose of…

2349

Abstract

Purpose

The entrepreneurial capability (EC) environment refers to the general social and economic settings of a given local/regional entrepreneurship environment. The primary purpose of this study is to uncover key indicators of the EC milieu and test these components empirically within the context of the Association of South East Asian Nations (ASEAN)-5 economies to elucidate the current state of their EC environments, at the regional and national levels. To this end, the aim of this study is twofold. First, this work endeavors to explicate the determinants of EC, with aims of elucidating its association to commercial opportunities in (ASEAN)-5 economies, namely, Indonesia, Malaysia, the Philippines, Singapore and Thailand. Next, this study applies the developed theory, including the identified determinants of EC to empirically test the efficiency and imperative coefficients of variables that have an impact on perceived entrepreneurial capabilities within a given environment.

Design/methodology/approach

This research applies two frontier models, namely, the consistent estimation of fixed-effects and linear transformation stochastic frontier models, to assess the coefficients of significant EC variables for the panel sample. Data corresponding to the assessed variables were retrieved from the databases of the Global Entrepreneurship Monitor (GEM) – 2016 and the World Competitiveness Yearbook (WCY) – 2016, for the period, 2010-2016.

Findings

The attained results suggest that factors corresponding to the variables “Entrepreneurship as a good career choice” and “perceived opportunities” have played a significantly positive role on the EC environment of ASEAN 05, although findings suggest both factors may still be improved upon. Conversely, the “fear of failure rate” factor was shown to have exerted a negative impact on the efficiency of the EC environment of ASEAN 05. Other important variables – such as intellectual property rights, university education and knowledge transfer rate – were shown to generate a positive impact on the EC environment of these economies.

Originality/value

This study makes an important contribution to the entrepreneurship literature and can stimulate policymakers to rethink the EC settings of ASEAN-05 in their pursuit of an innovation-driven region.

Details

Asia Pacific Journal of Innovation and Entrepreneurship, vol. 12 no. 2
Type: Research Article
ISSN: 2398-7812

Keywords

Open Access
Article
Publication date: 6 May 2020

Phong Hoang Nguyen and Duyen Thi Bich Pham

The paper aims to enrich previous findings for an emerging banking industry such as Vietnam, reporting the difference between the parametric and nonparametric methods when…

3694

Abstract

Purpose

The paper aims to enrich previous findings for an emerging banking industry such as Vietnam, reporting the difference between the parametric and nonparametric methods when measuring cost efficiency. The purpose of the study is to assess the consistency in issuing policies to improve the cost efficiency of Vietnamese commercial banks.

Design/methodology/approach

The cost efficiency of banks is assessed through the data envelopment analysis (DEA) and the stochastic frontier analysis (SFA). Next, five tests are conducted in succession to analyze the differences in cost efficiency measured by these two methods, including the distribution, the rankings, the identification of the best and worst banks, the time consistency and the determinants of efficiency frontier. The data are collected from the annual financial statements of Vietnamese banks during 2005–2017.

Findings

The results show that the cost efficiency obtained under the SFA models is more consistent than under the DEA models. However, the DEA-based efficiency scores are more similar in ranking order and stability over time. The inconsistency in efficiency characteristics under two different methods reminds policy makers and bank administrators to compare and select the appropriate efficiency frontier measure for each stage and specific economic conditions.

Originality/value

This paper shows the need to control for heterogeneity over banking groups and time as well as for random noise and outliers when measuring the cost efficiency.

Details

Journal of Economics and Development, vol. 22 no. 2
Type: Research Article
ISSN: 1859-0020

Keywords

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