Measuringtherelativeefficiencyofbankingindustry has been a popular subject among both practitioners and academicians. Dataenvelopmentanalysis (DEA) has been widely applied for different purposes. This paper presents an empirical investigation to measure therelativeefficiencyof various banks located in province of Semnan, Iran. The proposed study uses DEA method to rank all units and using Anderson and Peterson method (1993) [ Andersen, P., & Petersen, N. C. (1993). A procedure for ranking efficient units indataenvelopmentanalysis. Management Science, 39, 1261-1264 ], we provide some super efficiency for inefficient units. The study also provides reference numbers for inefficient units and gives some target values for all inefficient units.
During the past few years, there have been tremendous efforts on using recent advances in technology to provide electronic services and helping people transfer funds electronically, which increases security and bring peace of mind among banks’ customers. One ofthe primary concerns inbankingindustry is to measure therelativeefficiencyofbankingindustryin terms of e-business. This could be done through considering different criteria and measures them in terms of various perspectives using multi criteria decision making (MCDM) approaches such as dataenvelopmentanalysis (DEA) (Charnes et al., 1978, 1994; Andersen et al., 1993), analytical hierarchy process (AHP) (Saaty, 1992), Entropy and Technique for Order Preference by Similarity to Ideal Solution (TOPSIS).
In this paper we systematically compare the output from the health system of a set of OECD countries with resources employed (doctors, nurses, beds and diagnostic technology equipment). Using dataenvelopmentanalysis (DEA), we derive a theoretical production frontier for health. Inthe most favourable case, a country is operating on the frontier, and is considered as efficient. However, most countries are found to perform below the frontier and an estimate ofthe distance each country is from that borderline is provided – the so-called efficiency score. Moreover, estimating a semi-parametric model ofthe health production process using a two-stage approach, we show that inefficiency inthe health sector is strongly related to variables that are, at least inthe short- to medium run, beyond the control of governments. These are GDP per capita, the education level, and unhealthy lifestyles as obesity and smoking habits.
regression, was subsequently used in numerous studies applied to several industries, including thebanking sector. Given that the DEA efficiency scores assume continuous values inthe interval 0; 1, the Tobit regression was considered by many authors to be more appropriate instead of simple linear models, which should be imposed a two-limit constraint. However, despite the extensive applicationof Tobit regression models to DEA efficiency scores, recent studies report this technique as a poor specification because there is a positive probability that the scores assume a value equal to 1, but the probability ofthe value equal to 0 is zero. Several authors report that although the Tobit model may be appropriate to describe data censored inthe interval [0, 1], it is not appropriate to apply to the DEA efficiency scores, since these are obtained naturally, derived from its calculation method, and not by any kind of censorship (Papke and Wooldrigde, 1996) (Hoff, 2007) (McDonald, 2009) (Ramalho et al., 2010). Papke and Wooldridge (1996) started the study of appropriate regressions to this type ofdata, and promoted the creation of a new group of regressions, which have been frequently called by researchers by fractional regression models, whose dependent variables assume values inthe interval [0; 1]. Ramalho et al. (2009; 2010; 2011) test several alternative regression models to deal with the fractional nature of DEA scores, namely: Logit, Probit, Loglog and Cloglog regressions. This research intends to contribute to the study of this topic, since (i) we do not know empirical studies applied to thebanking sector in Portugal, in which efficiency scores are estimated through a two-stage DEA model similar to the one applied; (ii) nor do we know the existence of empirical studies in which theefficiency determinants ofthebanking sector in Portugal are identified through fractional regressions. The main objective of this study is to evaluate theefficiency and identify theefficiency determinants ofthe main banks operating in Portugal, which are estimated inan integrated and more demanding way, which surpasses the traditional standard efficiency models. Theefficiency scores were estimated based on a two-stage model and, at a later stage, the main determinants of bank efficiency were identified based on theapplicationof fractional regressions. These alternative models are effectively more appropriate to deal with the fractional nature of DEA scores.
Financial institutions around the world expe rienced substantial changes inthe last few years. Technological progress, reduced information costs, fiercer competition among both bank and non bank financial intermediaries and ongoing deregulation all led to substantial changes in nu merous financial systems. Bank efficiency has been an important issue in this transition. There are two types of methods to measure comparative efficiency: parametric and non parametric me thods. The non parametric approaches use ma thematical programming techniques (Coelli, 1996); among those DataEnvelopmentAnalysis (DEA) is widely used. The primary focus of DEA is to measure the production or performance function of DMUs (decision making unit).
In this paper we follow the intermediation approach. Under this approach banks function as financial intermediaries converting and transferring financial assets be- tween surplus units and deficit units. In this context we take as output the vector y = (securities, loans, demand deposits). This output vector is combined into a single measure, also denoted by y, representing the sum ofthe values of investment securities , total loans and demand deposits. Here we follow along the lines of Sathie (2001) who, in a similar study ofthe Australian bankingindustry, considers demand deposits as output. All output variables, as shown below, are measured on a per employee basis since they are normalized by the number of employees. This approach has the advantage of making the banks more comparable through the reduction of variability and ofthe influence of size inthe DEA analysis.
Drake (2001) analyses relative efficiencies within thebanking sector and the productivity change inthe main UK banks over the period 1984 to 1995. The results obtained provide important insights into the size-efficiency relationship inthe considered sample of banks and offer a perspective on the evolving structure and competitive environment within which the banks are currently operating. Webb (2003) utilizes DEA window analysis, to measure therelativeefficiency levels of large UK retail banks during the period 1982-1995, mostly finding that the overall long run average efficiency trend is falling, and also that all banks inthe study show reducing levels ofefficiency over the entire time period.
DEA method can be very useful inthe Decision Support Systems, when it is required to classify some objects based on the assessment of their effectiveness . In assessing of comp le x systems concomitant problem of determining oftherelative importance ofthe diverse indicators for the functioning ofthe system often occurs. Also, there are difficu lties in obtaining single – integral – efficiency indicators. In light ofthe investigated problem DEA method allows to avoid these comple xit ies and makes it possible to obtain an integrated indicator ofthe effectiveness for each ofthe levels of poverty ofthe population included inthe considered system, without requiring a priori assignment of we ight coefficients for the variab les.
Measuring organization performance plays an important role for developing better strategic plans. In today's competitive environment, organizations attempt for the product quality or offering the service, delivery, reliability capability and the customer satisfaction. These properties are not measurable only by traditional financial criteria and we need a method, which could consider non-financial factors as well. The present study of this paper proposed a hybrid of balanced score card (BSC) and dataenvelopmentanalysis (DEA) method for an empirical study ofbanking sector. The study proposes a model for assessing the Tose`eTa`avon bank performance, which is an example of governmental credit and financial services institutes. The study determines different important factors associated with each four components of BSC and uses analytical hierarchy process to rank the measures. In each part of BSC implementation, we use DEA for ranking different units of bank and efficient and inefficient units are determined.
Abstract: Problem statement: Most studies about theapplicationofDataEnvelopmentAnalysis (DEA) follow the concept of radial and non-radial efficiency measures. Because of some difficulties with the measure of weights, Russell measure utilizes the mean of all input/output efficiency measurements as theefficiency score of a specific business unit. However, this may render bias. Approach: This study provided a reasonable mechanism inthe determination of user-specified weights for inputs to enhance the Russell measure which avoids the computational and interpretative difficulties. Results: Additionally, it can assist the decision maker in determining therelative importance of factors to improve the discrimination level of business unit efficiencies. Conclusion: The major advantages ofthe proposed technique are that it can not only provide a reasonable mechanism inthe determination of user specified weights but also enhance the Russell measure. In addition, it can assist the decision maker in determining therelative importance of factors to improve the discrimination level of DMUs efficiencies and ensure the optimal scores of DMUs as the CCR efficiency.
Abstract: Problem statement: The purpose of this study is to analyze efficiency and benchmarking using DataEnvelopmentAnalysis (DEA) in departments of University. Benchmarking is a process of defining valid measures of performance comparison among peer decision making units (DMUs), using them to determine therelative positions ofthe peer DMUs and, ultimately, establishing a standard of excellence. Approach: DEA can be regarded as a benchmarking tool, because the frontier identified can be regarded as an empirical standard of excellence. Once the frontier is established, then one may compare a set of DMUs to the frontier. Results: We apply benchmarking to detect mistakes of inefficient departments to become efficient and to learn better managerial practice. Conclusion: The results indicated 9 departments are inefficient between 21 departments. The average inefficiency is 0.8516. Inefficient departments don’t have excess inthe number of teaching staff, but all of them have excess the number of registered student. The shortage of performed research works is the most important indicators of outputs in inefficient departments, which must be corrected.
This study presents an alternative method for estimating theefficiencyof a parallel production system and theefficiencyof its units. Since DEA models implicitly use Production Possibility Set (PPS) to evaluate theefficiencyof DMUs, we first define the PPS ofthe parallel production systems. Then, based on this PPS, we introduce a non-radial DEA model in Slacks-Based Measure (SBM) formulation for aggregating the units in a parallel production system. Under this framework, the overall efficiencyofthe system is expressed as a weighted sum ofthe efficiencies of its units. With decomposition ofthe overall efficiency, the units which cause the inefficient operation ofthe system can be identified for future improvements An example from the forest production industryin Taiwan is applied to compare the new approach with Kao’s parallel model.
commercial banks’ performance. For instance, Casu and Molyneux (2000) employed the DEA approach to investigate theefficiencyin European banking systems. They attempted to examine whether the productive efficiencyof European banking systems has improved and converged towards a common European frontier, following the process of EU legislative harmonization. Noulas (2001) studied the effect ofbanking deregulation on private and public-owned banks by using DataEnvelopmentAnalysis. The results showed that the private banks were more efficient than the public-owned, although the gap between levels ofefficiency is not relevant from a statistical viewpoint. Barr et al. (2002) evaluated the productive efficiencyof U.S. commercial banks. Study results revealed a close interdependence between efficiency and independent measures of performance, including confidential ratings made by bank examiners. Jemric (2002) investigated theefficiencyof banks in Croatia. The main results showed that foreign banks are, on average, the most efficient; also banks that recently entered the market are more efficient than those operating for a long time. Also, small banks are more efficient than large ones. Wu (2005) examined productivity and efficiencyof banks in Australia during 1983-2001. The main results reported that efficiency increased in times of deregulation. Loukoianova (2008) made a comparison ofthebanking sectors in Western Europe, the U.S. and Japan depending on the specialization of banks.
Sadjadi and Omrani (2008) are also the first ones who introduced the idea of robust DEA for handling uncertainty inthedata. They examined both robust methods introduced by Ben-Tal and Nemirovski (1999) and Bertsimas and Sim (2003) to handle uncertainty for two applications from energy and telecommunication industries and compared their results with the nominal solutions. They concluded that the price of robustness does not have significant impact ofthe quality of final results but it immunes the final solutions against data uncertainty, significantly.
arterial stifness (and EVA) is strongly inluenced by the BP load (MAP), HR, and SNS activity, there may exist some other important components (collagen protein synthesis and structure) and vascular risk factors (hyperglycaemia, dyslipidaemia, inlammation) independent of BP regulation. If shown to be true, for example after analysis based on Mendelian randomisation methodology, this opens up new possibilities to target these mechanisms of protein/collagen synthesis with new drugs to reduce arterial stifness. Such studies have been considered and drafted, but the results will not be ready for presentation inthe near future. One speculative example involves the truncated and aberrantly farnesylated lamin A protein called progerin, which is found in children with the extremely rare and fatal premature ageing syndrome Hutchinson–Gilford progeria syndrome (HGPS). Recently, 25 patients with HGPS received the farnesyltransferase inhibitor lonafarnib for a minimum of 2 years. 27 The primary outcome for
this amount must be based upon the requirements of central Banks of each country, setting the minimum provisions to be held against lending assets. At the same time, some countries apply the Basel accords (I, II and III) to identify and fulfill some capital adequacy ratios, market liquidity tests and stress tests. Thus, banks that are listed in European stock exchanges have been mandated to compile their consolidated financial statements according to IFRSs (since 2005) and to compile with Basel II for capital requirements (since 2007). Under these considerations, two kinds of provisions can be addressed: i) the specific provision, that is directly a correction of a single loan; ii) the general provision, that includes group impairments recognized whenever observable data display a measurable decline in estimated future cash flows that cannot yet be allocated to a single loan.
multiple synchronous and/or metachronous cancers ofthe oesophagus, lungs, and head and neck region (i.e. oral cavity, oropharynx, hypopharynx, or larynx). 90% ofthe tumours in head and neck are squamous cell carcinomas, and at least 75% of them are attributable to the combination of tobacco and alcohol consumption. The odds ratio of OSCC may be as high as 50.1 for those who are both heavy smokers and heavy drinkers in comparison to people who neither drink nor smoke. 13 It has been estimated
When performing a specific analysisof each DMU, it is possible to infer that, for terminal 3 to reach pure technical efficiency, it is only necessary that its reception capacity be reduced from 1,000 to 417.8 tons/hour, provided that the other variables be kept constant. On the other hand, DMU5 must also perform a cut of 12 employees involved in intermodal transshipment services and, at the same time, perform a small reduction in its storage capacity. With regard to terminal 6, it is important for managers to review what may be causing an excess of professionals, aligned with transshipment activities, so that this DMU can contribute to reach theefficiency frontier, since there must be a reduction of half of these employees, according to DEA. A similar situation can be observed in relation to DMU8, of public character, in which DEA also suggests a reduction from 85 to 42 employees. Again, it is important to emphasize the existence of worker flexibility in diverse functions, which may serve as an explanation for this fact.
Even though it is an important issue, there is little information inthe shrimp farming industry to assist producers in managing their projects, using available resources inthe best possible way, reducing costs and increasing competitiveness gains, thus mitigating negative impacts. We have previously evaluated the financial indicators and the risk of BFT and conventional systems (Rego et al. 2017a, b), but in this study we focused on the technical efficiencyofthe production cycle of Litopenaeus vannamei in conventional and BFT systemsin northeastern Brazil.
The purpose ofthe 6-month (and ongoing) strategic plan carried out by the university on this project is to observe how different areas of knowledge can cooperate by sharing their intellectual assets (e.g. facilities or partnerships) in and outside the university campus. Such situation can be considered a “barter project”, a system of exchange used to increase the number of outputs. As a beginner level “barter project”, it is not possible to measure the monetary efficiency gain stemming from the scientific laboratories; however, considering the lack of financial resources provided by the university, the scientific laboratories are still carrying out their research while supporting one another (learning how to articulate themselves in order to work with inputs producing better outputs) and implementing actions for their own independent living, e. g. participation in scientific meetings. This paper shows how efficiency can be increased within intellectual production, focusing mainly on articles, theses and books; not monetary gains inthe short term.