Surplus Labor in Indian Manufacturing: Evidence from the Annual Survey of Industries

In this paper we analyze state level data for total manufacturing constructed from the Annual Survey of Industries for the period 1986-2000 using the nonparametric method of Data Envelopment Analysis (DEA). We assess the extent of surplus labor in the manufacturing sector in the individual states in India. The study also investigates whether the same states show the maximum incidence of surplus labor every year in the sample period and if there any evidence that the extent of surplus labor in manufacturing has been reduced or eliminated in the post-reform era. Our study shows the presence of considerable measure of surplus labor in all of the years in a majority of the states. Things have worsened rather than improved after the reform. Also, the regional distribution of surplus labor has remain fairly unchanged with the same states performing inefficiently both before and after the reform.

Input Price Variation Across Locations and a Generalized Measure of Cost Efficiency

We propose a nonparametric model for global cost minimization as a framework for optimal allocation of a firm's output target across multiple locations, taking account of differences in input prices and technologies across locations. This should be useful for firms planning production sites within a country and for foreign direct investment decisions by multi-national firms. Two illustrative examples are included. The first example considers the production location decision of a manufacturing firm across a number of adjacent states of the US. In the other example, we consider the optimal allocation of US and Canadian automobile manufacturers across the two countries.

The impact of Medicare, Medicaid and Schip Extension Act of 2007 (MMSEA) on the long term acute care hospitals

The Long Term Acute Care Hospitals (LTACH), which serve medically complex patients, have grown tremendously in recent years, by expanding the number of Medicare patient admissions and thus increasing Medicare expenditures (Stark 2004). In an attempt to mitigate the rapid growth of the LTACHs and reduce related Medicare expenditures, Congress enacted Section 114 of P.L. 110-173 (��114) of the Medicare, Medicaid and SCHIP Extension Act (MMSEA) in December 29, 2007 to regulate the LTCAHs industry. MMSEA increased the medical necessity reviews for Medicare admissions, imposed a moratorium on new LTCAHs, and allowed the Centers for Medicare and Medicaid Services (CMS) to recoup Medicare overpayments for unnecessary admissions. ^ This study examines whether MMSEA impacted LTACH admissions, operating margins and efficiency. These objectives were analyzed by comparing LTACH data for 2008 (post MMSEA) and data for 2006-2007 (pre-MMSEA). Secondary data were utilized from the American Hospital Association (AHA) database and the American Hospital Directory (AHD).^ This is a longitudinal retrospective study with a total sample of 55 LTACHs, selected from 396 LTACHs facilities that were fully operational during the study period of 2006-2008. The results of the research found no statistically significant change in total Medicare admissions; instead there was a small but not statistically significant reduction of 5% in Medicare admissions for 2008 in comparison to those for 2006. A statistically significant decrease in mean operating margins was confirmed between the years 2006 and 2008. The LTACHs' Technical Efficiency (TE), as computed by Data Envelopment Analysis (DEA), showed significant decrease in efficiency over the same period. Thirteen of the 55 LTACHs in the sample (24%) in 2006 were calculated as ���efficient��� utilizing the DEA analysis. This dropped to 13% (7/55) in 2008. Longitudinally, the decrease in efficiency using the DEA extension technique (Malmquist Index or MI) indicated a deterioration of 10% in efficiency over the same period. Interestingly, however, when the sample was stratified into high efficient versus low efficient subgroups (approximately 25% in each group), a comparison of the MIs suggested a significant improvement in Efficiency Change (EC) for the least efficient (MI 0.92022) and reduction in efficiency for the most efficient LTACHs (MI = 1.38761) over same period. While a reduction in efficiency for the most efficient is unexpected, it is not particularly surprising, since efficiency measure can vary over time. An improvement in efficiency, however, for the least efficient should be expected as those LTACHs begin to manage expenses (and controllable resources) more carefully to offset the payment/reimbursement pressures on their margins from MMSEA.^

Performance of financial institutions in Bhutan

The Kingdom of Bhutan is a small landlocked country in South Asia, located in the eastern Himalayas, and bordered by India and China. Bhutan is a small and fragile economy with a population of about 687,000. Nevertheless, its banking system plays an essential role in the growth and development of the country. This paper analyzes the financial performance, the development and growth of bank and non-bank financial institutions of Bhutan for the period 1999-2008 using both traditional and data envelopment analysis (DEA). The DEA analysis shows that financial institutions in are efficient and Bhutan National Bank has been the most efficient one. Overall, the paper finds that the ROE of the financial institutions in Bhutan are comparable to the international banks.

Metodolog��a de evaluaci��n de la eficiencia de los servicios de autob��s urbano : aplicaci��n a las grandes ciudades espa��olas en el per��odo 2004-2009

En estos tiempos de crisis se hace imperativo lograr un consumo de recursos p��blicos lo m��s racional posible. El transporte p��blico urbano es un sector al que se dedican grandes inversiones y cuya prestaci��n de servicios est�� fuertemente subvencionada. El incremento de la eficiencia t��cnica del sector, entendida como la relaci��n entre producci��n de servicios y consumo de recursos, puede ayudar a conseguir una mejor gesti��n de los fondos p��blicos. Un primer paso para que se produzca una mejora es el desarrollo de una metodolog��a de evaluaci��n de la eficiencia t��cnica de las compa����as de transporte p��blico. Existen diferentes m��todos para la evaluaci��n t��cnica de un conjunto de compa����as pertenecientes a un sector. Uno de los m��s utilizados es el m��todo frontera, en el que se encuentra el an��lisis envolvente de datos (Data Envelopment Analysis, DEA, por sus siglas en ingl��s). Este m��todo permite establecer una frontera de eficiencia t��cnica relativa a un determinado grupo de compa����as, en funci��n de un n��mero limitado de variables. Las variables deben cuantificar, por un lado, la prestaci��n de servicios de las distintas compa����as (outputs), y por el otro, los recursos consumidos en la producci��n de dichos servicios (inputs). El objetivo de esta tesis es analizar, mediante el uso del m��todo DEA, la eficiencia t��cnica de los servicios de autobuses urbanos en Espa��a. Para ello, se estudia el n��mero de variables m��s adecuado para conformar los modelos con los que se obtienen las fronteras de eficiencia. En el desarrollo de la metodolog��a se utilizan indicadores de los servicios de autob��s urbano de las principales ciudades de las ��reas metropolitanas espa��olas, para el periodo 2004-2009. In times of crisis it is imperative achieve a consumption of public resources as rational as possible. Urban public transport is a sector devoted to large investments and whose services are heavily subsidized. Increase the technical efficiency of the sector, defined as the ratio of service output and resource consumption, can help achieve a better management of public funds. One step to produce an improvement is the development of a methodology for evaluating the technical efficiency of the public transport companies. There are different methods for the technical evaluation of a set of companies within an industry. One of the most widely used methods is the frontier method, in particular the Data Envelopment Analysis (DEA). This method allows the calculation of a technical efficiency frontier on a specific group of companies, based on a limited number of variables. Variables must quantify, on the one hand, the provision of services of different companies (outputs), and on the other hand, the resources consumed in the production of such services (inputs). The objective of this thesis is to analyze, using the DEA method, the technical efficiency of urban bus services in Spain. For this purpose, it is studied the more suitable variables that can be used in the models to obtain the efficiency frontiers. In developing the methodology are used indicators of urban bus services in major cities of the Spanish metropolitan areas for the period 2004-2009.

Un modelo no param��trico de evaluaci��n de la eficiencia y la gesti��n de las redes sociales virtuales : una aplicaci��n a las empresas del sector de las telecomunicaciones en Espa��a

Este art��culo analiza la relaci��n entre la eficiencia productiva y las Redes Sociales Virtuales (RSV) en las empresas de telecomunicaciones en Espa��a. En una primera etapa, se aplica el an��lisis envolvente de datos (DEA) incorporando varios indicadores de actividad ?Social Media?. En una segunda etapa, se utiliza una regresi��n log��stica para caracterizar las empresas eficientes. Los resultados muestran que la capacidad de absorci��n y utilizaci��n de las RSV es un factor determinante en la mejora de la eficiencia productiva. La utilizaci��n combinada y las distintas capacidades de gesti��n de las RSV permiten identificarlas como un recurso heterog��neo. Este trabajo presenta un modelo para la evaluaci��n del desempe��o estrat��gico al abordar su presencia y actividad en RSV. ABSTRACT. This paper analyzes the relationship between the productive efficiency and the Online Social Networks - OSN in the Spanish telecommunications firms. First, a data envelopment analysis (DEA) is used and several indicators of business "Social Media" activities are incorporated. In a second stage, a logistic regression model regression is applied to characteri ze the efficient enterprises. Results show that the company's ability to absorb and utilize this OSN is a key factor in improving the productive efficiency. These results on the combined use and different management capabilities of OSN point to a definitio n of OSN as a heterogeneous resource. This paper presents a model for assessing the strategic performance to address their presence and activity in OSN.

Pr��ticas administrativas para a sustentabilidade financeira de operadoras de planos de sa��de m��dico-hospitalares: um estudo de m��ltiplos casos

No Brasil, o sistema de sa��de �� composto por duas estruturas: p��blica, representada pelo Sistema ��nico de Sa��de (SUS) e privada suplementar, composta por 1.268 operadoras de planos de sa��de, supervisionadas pela Ag��ncia Nacional de Sa��de (ANS). No entanto, as operadoras t��m sido consideradas ineficientes tanto na gera����o de resultados financeiros quanto na presta����o de servi��os aos benefici��rios, destacando-se a necessidade e relev��ncia para a sa��de p��blica ao se buscar avaliar o seu desempenho sob essas perspectivas. O objetivo do trabalho foi, para um mesmo n��vel de efici��ncia na presta����o de servi��os, identificar as pr��ticas administrativas que diferenciam as operadoras de planos de sa��de (OPS) financeiramente sustent��veis. Para tanto, inicialmente foi aplicada a t��cnica da An��lise Envolt��ria de Dados (DEA) no intuito de identificar operadoras eficientes em transformar inputs em outputs e, a partir dos escores obtidos, selecionar duas OPS de n��vel de servi��os semelhantes e desempenho financeiro opostos para que fossem comparadas por meio de um estudo de m��ltiplos casos. A an��lise quantitativa indicou que as OPS de medicina de grupo apresentaram maior efici��ncia do que as demais modalidades. J�� o estudo de m��ltiplos casos identificou que a gest��o de pol��ticas de cr��dito, de capta����o e aplica����o de recursos, o planejamento tribut��rio, a ado����o de pol��ticas de promo����o e preven����o �� sa��de, as formas de remunera����o dos m��dicos e a estrat��gia de composi����o de receitas diferenciaram a OPS de melhor desempenho.

Avalia����o de efici��ncia das cooperativas de cr��dito no Brasil: um estudo com base na intermedia����o financeira e na presta����o de servi��os

As cooperativas de cr��dito s��o institui����es financeiras que t��m como finalidade principal a presta����o de servi��os banc��rios e de intermedia����o financeira voltando-se para a gera����o de benef��cios ao cooperado, atrav��s de benef��cios econ��micos encontrados sob a forma cooperativada. Considerando o objetivo destas organiza����es, o presente trabalho teve por objetivo avaliar a efici��ncia das mesmas considerando duas vertentes: 1) a atividade de intermedia����o financeira; e 2) a atividade de presta����o de servi��os banc��rios, a partir de vari��veis cont��beis. A t��cnica utilizada para a avalia����o da efici��ncia foi a An��lise Envolt��ria de Dados e foram analisados os determinantes da efici��ncia por meio de regress��es do tipo Tobit. A amostra �� composta por 315 cooperativas singulares listadas na base de dados do Banco Central do Brasil e foram utilizados os dados dos balancetes anuais e semestrais (soma dos semestres para as contas de resultado de cada ano) apresentados para per��odo de 2007 a 2014. Os resultados indicaram baixa efici��ncia das cooperativas na presta����o de servi��os banc��rios, com 73% da amostra apresentando inefici��ncia ao longo de todos os anos do per��odo em an��lise. Na atividade de intermedia����o financeira 20 cooperativas foram eficientes ao longo do per��odo completo, com as demais apresentando graus de inefici��ncia abaixo de 16% em todos os anos. Quanto aos determinantes da efici��ncia, verificou-se como principais fatores na atividade de intermedia����o financeira a Imobiliza����o, a Insolv��ncia, o Descasamento Passivo e as Despesas Administrativas, enquanto na atividade de presta����o de servi��os os principais determinantes foram a Capta����o por Floating e as Despesas Administrativas. Os resultados da efici��ncia na intermedia����o financeira indicaram baixos graus de inefici��ncia, enquanto os altos graus de inefici��ncia na presta����o de servi��os banc��rios alertaram para a pouca import��ncia dada ao fornecimentos destes servi��os e para a import��ncia de se utilizar dois modelos distintos para a avalia����o da efici��ncia em cooperativas de cr��dito, dado o comportamento desvinculado entre as duas atividades avaliadas.

Eficiencia en la distribuci��n: una aplicaci��n en el sector de agencias de viajes

El objetivo de este trabajo consiste en estimar la eficiencia productiva y de escala con la que operan los intermediarios del sector minorista espa��ol de distribuci��n tur��stico. Adicionalmente, se pretende examinar los determinantes de la eficiencia en t��rminos de la integraci��n vertical, concentraci��n horizontal, tama��o y resultados de las entidades. La metodolog��a aplicada se apoya en diversas t��cnicas de medici��n de eficiencia (param��trica de naturaleza estoc��stica y no param��trica del An��lisis Envolvente de Datos, DEA), as�� como en modelos tobit para conocer el impacto de los factores del mercado y de la empresa sobre los niveles de eficiencia. La aplicaci��n emp��rica realizada en una muestra de 50 agencias de viaje de nuestro pa��s evidencia, por un lado, unos elevados ��ndices de ineficiencia t��cnica y de escala, destacando en el ��ltimo caso los rendimientos decrecientes; y por otro, que el tama��o y el ROA son los factores determinante de la eficiencia de escala, mientras que la concentraci��n del mercado explica la eficiencia t��cnica.

Valor de marca colectiva: aproximaci��n desde el enfoque de la eficiencia

El objetivo del trabajo consiste en analizar la eficiencia de las empresas que integran una marca colectiva en una industria productora de bienes de experiencia. El supuesto b��sico es que la marca colectiva tiene un impacto positivo en la eficiencia de las empresas acogidas a la misma, el cual viene explicado porque la reputaci��n colectiva fomenta una inversi��n eficiente en calidad. Sin embargo, la marca colectiva tambi��n puede tener un efecto opuesto sobre los incentivos de una empresa a una inversi��n en calidad ya que dicha marca puede crear un incentivo a ���free ride���. Nuestra propuesta defiende que la interacci��n entre estos factores opuestos, reputaci��n colectiva y ���free ride���, viene moderada por las caracter��sticas de la marca colectiva y de la propia empresa. La metodolog��a aplicada en el contraste de estas hip��tesis se apoya en el An��lisis Envolvente de Datos para estimar la eficiencia, as�� como en modelos econom��tricos para explicar la eficiencia empresarial mediante caracter��sticas de la marca colectiva y de la empresa. Los resultados obtenidos en el ��mbito de las bodegas espa��olas evidencian que las marcas colectivas tienen un impacto positivo sobre la eficiencia, el cual viene moderado por el tama��o de la marca colectiva generando una relaci��n curvil��nea en forma de U invertida. Adicionalmente, el volumen de producci��n de la marca colectiva y el tama��o de las bodegas ejercen un efecto moderador en el impacto del tama��o de la marca colectiva sobre la eficiencia. En general, los resultados ponen de manifiesto la importancia de las marcas colectivas cuando se investigan industrias donde la calidad no es solamente se��alizada por una marca t��pica individual.

Smoothed bootstrap Malmquist index based on DEA model to compute productivity of tax offices

This paper analyses the productivity growth of the SUMA tax offices located in Spain evolved between 2004 and 2006 by using Malmquist Index based on Data Envelopment Analysis (DEA) models. It goes a step forward by smoothed bootstrap procedure which improves the quality of the results by generalising the samples, so that the conclusions obtained from them can be applied in order to increase productivity levels. Additionally, the productivity effect is divided into two different components, efficiency and technological change, with the objective of helping to clarify the role played by either the managers or the level of technology in the final performance figures.

A three-stage DEA model to evaluate learning-teaching technical efficiency: Key performance indicators and contextual variables

This study evaluates the technical efficiency of the learning-teaching process in higher education using a three-stage procedure that offers advances in comparison to previous studies and improves the quality of the results. First, it utilizes a multiple stage Data Envelopment Analysis (DEA) with contextual variables. Second, the levels of super efficiency are calculated in order to prioritize the efficiency units. And finally, through sensitivity analysis, the contribution of each key performance indicator (KPI) is established with respect to the efficiency levels without omission of variables. The analytical data was collected from a survey completed by 633 tourism students during the 2011/12, 2012/13 and 2013/14 academic course years. The results suggest that level of satisfaction with the course, diversity of materials and satisfaction with the teacher were the most important factors affecting teaching performance. Furthermore, the effect of the contextual variables was found to be significant.

Modelling knowledge production performance of research centres with a focus on triple bottom line benchmarking

We demonstrate a portable process for developing a triple bottom line model to measure the knowledge production performance of individual research centres. For the first time, this study also empirically illustrates how a fully units-invariant model of Data Envelopment Analysis (DEA) can be used to measure the relative efficiency of research centres by capturing the interaction amongst a common set of multiple inputs and outputs. This study is particularly timely given the increasing transparency required by governments and industries that fund research activities. The process highlights the links between organisational objectives, desired outcomes and outputs while the emerging performance model represents an executive managerial view. This study brings consistency to current measures that often rely on ratios and univariate analyses that are not otherwise conducive to relative performance analysis.

Developing foreign bank efficiency models for DEA grounded in finance theory

We develop foreign bank technical, cost and profit efficiency models for particular application with data envelopment analysis (DEA). Key motivations for the paper are (a) the often-observed practice of choosing inputs and outputs where the selection process is poorly explained and linkages to theory are unclear, and (b) foreign bank productivity analysis, which has been neglected in DEA banking literature. The main aim is to demonstrate a process grounded in finance and banking theories for developing bank efficiency models, which can bring comparability and direction to empirical productivity studies. We expect this paper to foster empirical bank productivity studies.

Optimal Paths and Costs of Adjustment in Dynamic DEA Models: With Application to Chilean Department Stores

In this paper we propose a range of dynamic data envelopment analysis (DEA) models which allow information on costs of adjustment to be incorporated into the DEA framework. We first specify a basic dynamic DEA model predicated on a number or simplifying assumptions. We then outline a number of extensions to this model to accommodate asymmetric adjustment costs, non-static output quantities, non-static input prices, and non-static costs of adjustment, technological change, quasi-fixed inputs and investment budget constraints. The new dynamic DEA models provide valuable extra information relative to the standard static DEA models-they identify an optimal path of adjustment for the input quantities, and provide a measure of the potential cost savings that result from recognising the costs of adjusting input quantities towards the optimal point. The new models are illustrated using data relating to a chain of 35 retail department stores in Chile. The empirical results illustrate the wealth of information that can be derived from these models, and clearly show that static models overstate potential cost savings when adjustment costs are non-zero.