banking technology and the existence of a consistent output aggregate abstract this paper addresses the question of the existence of a consistent output aggregate in banking specific necessary and sufficient conditions for output aggregation are developed and tested in the context of a second order approximation to any arbitrary multi product bank cost function the analysis provides evidence that a composite aggregate measure of output fails to provide a proper representation of banking technology and therefore previous studies that used aggregate output measures may well be subject to specification errors

the tale of two research communities the diffusion of research on productive efficiency abstract the field of theoretical and applied efficiency analysis is pursued both by economists and people from operational research and management science each group tends to cite a different paper as the seminal one recent availability of extensive electronically accessible databases of journal articles makes studies of the diffusion of papers through citations possible research strands inspired by the seminal paper within economics are identified and followed by citation analysis during the 20 year period before the operations research paper was published the first decade of the operations research paper is studied in a similar way and emerging differences in diffusion patterns are pointed out main factors influencing citations apart from the quality of the research contribution are reputation of journal reputation of author number of close followers colleagues cadres of proteges ph d students and extent of network invisible college such factors are revealed by the citing papers in spite of increasing cross contacts between economics and operations research the last decades co citation analysis reveals a relative constant tendency to stick to own camp references

turkish bank efficiency bayesian estimation with undesirable outputs this paper analyzes the productivity and efficiency of turkish banks from 2002 to 2010 we obtained estimates of efficiency productivity growth and efficiency growth using a bayesian stochastic frontier approach and focused on accounting for non performing loans npls for use in our model specifically we introduce npls as a bad output in an input distance function and estimate a system of non linear equations subject to endogeneity we confirm that the productivity growth of turkish banks was positive over the period of this study which was mainly due to the improvement in technology while efficiency growth continued to be negative over the same period methodologically we also prove that not accounting for npls in estimating the frontier model might seriously distort the efficiency and productivity results the study also provides measures of shadow prices for npl and discusses the results in terms of several interesting trends in turkish banking finally the paper provides efficiency and productivity comparisons between domestic and foreign banks

efficiency analysis in banking firms an international comparison abstract the intensive process of financial european integration together with the profound transformation and deregulation that has taken place in the spanish banking system justifies the evaluation of its efficiency in comparison with that of other banking systems in this context the aim of this study is to analyze the productivity efficiency and differences in technology of several banking systems using a non parametric approach together with the malmquist index we compare the efficiency productivity and differences in technology of different european and us banking systems for the year 1992

the nonparametric risk adjusted efficiency measurement an application to taiwan s major rural financial intermediaries in this article a nonparametric approach is used to incorporate risk into the measurement of technical efficiencies of the major financial intermediaries in rural taiwan risk is treated as a joint but undesirable output given the fact that various regulatory actions may prevent its free disposability three risk indicators nonperforming loans allowance for loan losses and risky assets are employed alternatively in the empirical work results suggest that all three risk constraints are binding regulations on controlling risky assets and loan loss reserves are effective but more burdensome than those on controlling loan quality

foreign bank entry deregulation and bank efficiency lessons from the australian experience abstract this study considers the impact of foreign bank entry on banking efficiency in australia during the post deregulation period 1988 2001 using data envelopment analysis malmquist indices and stochastic frontier analysis we find foreign banks more efficient than domestic banks which however did not result in superior profits major australian banks have used size as a barrier to entry to new entrants furthermore bank efficiency has increased post deregulation and the competition resulting from diversity in bank types was important to prompt efficiency improvements finally the recession of the early 1990s resulted in a distinct shift in the process of efficiency changes

efficiency analysis for exogenously fixed inputs and outputs we evaluate by means of mathematical programming formulations the relative technical and scale efficiencies of decision making units dmus when some of the inputs or outputs are exogenously fixed and beyond the discretionary control of dmu managers this approach further develops the work on efficiency evaluation and on estimation of efficient production frontiers known as data envelopment analysis dea we also employ the model to provide efficient input and output targets for dmu managers in a way that specifically accounts for the fixed nature of some of the inputs or outputs we illustrate the approach using real data for a network of fast food restaurants

sensitivity analysis of efficiency and malmquist productivity indices an application to spanish savings banks abstract hypothesis testing and statistical precision in the context of non parametric efficiency and productivity measurement have been investigated since the early 1990s recent contributions focus on this matter through the use of resampling methods i e bootstrapping techniques however empirical evidence is still practically non existent this gap is more noticeable in the case of banking efficiency studies where the literature is immense in this work we explore productivity growth and productive efficiency for spanish savings banks over the initial post deregulation period 1992 1998 using data envelopment analysis dea and bootstrapping techniques results show that productivity growth has occurred mainly due to improvement in production possibilities and that mean efficiency has remained fairly constant over time the bootstrap analysis yields further evidence as for many firms productivity growth or decline is not statistically significant with regard to efficiency measurement the bootstrap reveals that the disparities in the original efficiency scores of some firms are lessened to a great extent

a many cone world abstract the breakdown of global factor price equalization or a single cone world is a central concern in various fields of economics this paper examines the empirical validities of the following two claims 1 the multiple cone heckscher ohlin ho model fits better than does the single cone ho model and 2 increases in the number of cones improve the fit of the model one of the contributions of this paper is that it focuses simultaneously on factor endowments production patterns and wage disparities across economies my empirical results support the first claim but not the second claim the results suggest that although the multiple cone model performs better than does the single cone model the increases in the number of cones do not necessarily result in better performance of the ho model

the economic significance of national border effects to address the economic significance of national border effects this paper provides evidence on two fundamental questions 1 do large border effects arise because of high perceived price wedges between foreign and domestic products or because imports and domestic goods are very close substitutes and 2 if price wedges are important do they reflect distortionary barriers to trade or do they arise from nondistortionary factors such as differences in transactions costs or product characteristics i conclude that while border effects may imply barriers welfare costs and a role for policy distortions are probably not as substantial as initial border results suggested jel f1

the evolution of cost productivity and efficiency among us credit unions abstract advances in information processing technology have eroded the advantages of small scale and proximity to customers that traditionally enabled small lenders to thrive nonetheless the membership and market share of us credit unions have increased though their average size has also risen we investigate changes in the efficiency and productivity of us credit unions during 1989 2006 by benchmarking the performance of individual firms against an estimated order quantile lying near the efficient frontier we construct a cost analog of the malmquist productivity index which we decompose to estimate changes in cost and scale efficiency and changes in technology we find that cost productivity fell on average across all credit unions but especially among smaller credit unions smaller credit unions confronted a shift in technology that increased the minimum cost required to produce given amounts of output all but the largest credit unions also became less scale efficient over time

the dominance of inefficiencies over scale and product mix economies in banking abstract this study measures and analyzes inefficiencies for all u s banks in 1984 inefficiencies are measured relative to a thick frontier cost function and are found to dominate measured scale and product mix economies most inefficiencies are operational in nature involving the overuse of physical inputs rather than financial involving overpayment of interest also technical inefficiencies proportionate overuse of all inputs dominate allocative inefficiencies improper mix of inputs these results suggest that competitive pressures in banking from deregulation will be focused primarily on banks that do not control costs rather than on those of a particular size or product mix

university library benchmarking an international comparison using dea abstract this paper proposes a framework for assessing the technical efficiency of 118 university libraries from australia austria canada germany switzerland and the united states the flexible non parametric approach of data envelopment analysis has been chosen to analyse the performance differentials of university libraries we also investigate whether the institutional settings affect the degree of library efficiency the findings of the intercountry efficiency comparison revealed that almost one third of the university libraries are technically efficient using environment specific frontiers to distinguish differences in managerial efficiency from differences in environmental efficiency we found considerable differences in technical efficiency between european and non european university libraries however as regards the environmental setting the non european best practice frontier outperforms the european best practice frontier

technical progress in a three country ricardian model with a continuum of goods abstract this paper develops a three country extension to the ricardian model with a continuum of goods in contrast to the standard two country version uniform technical progress in one country is shown to make the country which is a close substitute in production unambiguously worse off while improving the welfare of the other less similar country

productivity growth in large us commercial banks the initial post deregulation experience abstract we explore productivity growth for a group of 201 large us commercial banks over the initial post deregulation period from 1984 to 1990 using data envelopment analysis dea we measure productivity growth using malmquist productivity indexes and isolate the contributions of technical change technical efficiency change and scale change to productivity growth we find overall productivity growth at the rate of about 4 5 per year on average but productivity declined by 7 61 between 1984 and 1985 and by 0 33 between 1988 and 1989 our second stage panel regressions reveal that larger asset size and specialization of product mix associate with higher productivity growth while higher equity to assets associates with lower productivity growth

industry performance and structural efficiency measures solutions to problems in firm models abstract it is shown that average unit structural efficiency measures do not measure the level of technical efficiency in a firm model of an industry alternative structural efficiency measures generalized to multiple input and multiple output technologies are presented as a solution to the problem of how to estimate the relative performance of an industry as a whole where reallocation of inputs across firms is not feasible compared to existing measures the proposed measures require additional information therefore the linear programming dea models needed to obtain this information are presented this non parametric approach to relative efficiency measurement is also used to obtain economic efficiency estimates for an industry as a whole without imposing a priori restrictions on the relative input and output weights

energy and ghg emission efficiency in the chilean manufacturing industry sectoral and regional analysis by dea and malmquist indexes abstract global warming produced mainly by the emission of greenhouse gases is currently a worldwide concern in the last few decades since the 1950s many of the changes observed in the world climate have been meaningful this paper presents an analysis of energy efficiency and of greenhouse gas emissions in the chilean manufacturing industry by region and sector taking into consideration time sequences data envelopment analysis dea models are used for the analysis three ways to handle undesirable outputs are compared the source of inefficiency in each decision making unit dmu is calculated using scale efficiency and the evolution over time is analyzed using the malmquist index the results indicate that the industries located in the chilean regions of coquimbo la araucania and aysen were the most efficient while the industries in the regions of tarapaca antofagasta and biobio were less efficient the most efficient industrial sectors were those involving communications equipment base metals and clothing the least efficient were those concerned with food and beverages textiles and nonmetallic minerals due to the treatment of the undesirable outputs differences were found in the efficiency indexes obtained by the three models this finding suggests using a model better adapted to the characteristics of the outputs in question and the viability of improving industrial practices

the technical efficiency of us banks abstract the paper uses a non parametric frontier approach to measure the technical efficiency of a sample of u s banks the results indicate that these banks could have produced the same level of output with only 70 of the inputs actually used in addition most of this inefficiency is due to pure technical inefficiency wasting inputs rather than scale inefficiency operating at non constant returns to scale finally regression analysis indicates that the technical efficiency of the banks is positively related to size negatively related to product diversity and not at all related to the extent to which branch banking is allowed

power industry restructuring and eco efficiency changes a new slacks based model in malmquist luenberger index measurement measuring variations in efficiency and its extension eco efficiency during a restructuring period in different industries has always been a point of interest for regulators and policy makers this paper assesses the impacts of restructuring of procurement in the iranian power industry on the performance of power plants we introduce a new slacks based model for malmquist luenberger ml index measurement and apply it to the power plants to calculate the efficiency eco efficiency and technological changes over the 8 year period 2003 2010 of restructuring in the power industry the results reveal that although the restructuring had different effects on the individual power plants the overall growth in the eco efficiency of the sector was mainly due to advances in pure technology we also assess the correlation between efficiency and eco efficiency of the power plants which indicates a close relationship between these two steps thus lending support to the incorporation of environmental factors in efficiency analysis

estimating most productive scale size using data envelopment analysis abstract the relation between the most productive scale size mpss for paparticular input and output mixes and returns to scale for multiple inputs multiple outputs situations is explicitly developed this relation is then employed to extend the applications of data envelopment analysis dea introduced by charnes cooper and rhodes ccr to the estimation of most productive scale sizes for convex production possibility sets it is then shown that in addition to productive inefficiencies at the actual scale size the ccr efficiency measure also reflects any inefficiencies due to divergence from the most productive scale size two illustrations of the practical applications of these results to the estimation of most productive scale sizes and returns to scale for hospitals and stem electric generation plants are also provided emphasize the advantage of this method in examining specific segments of the efficient production surface

multiple cones factor price differences and the factor content of trade abstract this paper examines the theoretical predictions of the multi cone heckscher ohlin model and the empirical evidence for it i extend helpman 1984 by identifying additional restrictions that characterize the free trade equilibrium i illustrate that the complete set of restrictions are the building blocks of a multi cone factor content specification which is the factor content dual to alan deardorff s 1979 well known chain of comparative advantage goods prediction the theoretical analysis implies that the existing tests of helpman are incomplete applying the complete set of restrictions to choi and krishna s data set of 8 oecd countries i find limited empirical support this is compatible with previous studies suggesting that oecd countries do not occupy different cones

firm specific knowledge and technical efficiency of watch and clock manufacturing firms in china abstract this paper tests whether firm specific knowledge in terms of capital intensity product differentiation and research and development contribute to an improvement in firm efficiency based on a representative dataset from the watch and clock industry in southern china the technical efficiency is estimated using a non parametric data envelopment analysis approach through a tobit model we investigate whether a firm s specific knowledge influences its efficiency the results suggest that capital intensity and research and development have a positive effect on the efficiency of the sample firms and identify their roles of firm specific knowledge in explaining inter firm variation in efficiency however sample firms with high level of product differentiation were found to have no obvious advantages in efficiency performance

testing efficiency hypotheses in joint production a parametric approach n recent years a great deal of research has been directed to the modelling and measurement of technical and allocative efficiency in production with few exceptions this research has been restricted to single product firms however recent developments in duality theory have facilitated the extension of this research to multi product firms the main purpose of this paper is to develop a model of the multiproduct firm in which the possibilities of both technical and allocative inefficiency are incorporated in an econometrically useful way the first model we develop includes a nonneutral2 type of technical inefficiency and three distinguishable types of allocative inefficiency output mix input mix and scale each type of inefficiency is costly to the firm in the sense that each causes a reduction in profit beneath the maximum value attainable under full efficiency the cost of each type of inefficiency depends on the magnitude of the inefficiency and the structure of the underlying production technology in the second model we develop technical inefficiency remains nonneutral but allocative inefficiency is not generally decomposable into output mix input mix and scale components however both technical and allocative inefficiency remain costly to the firm the cost of each type of inefficiency depending on its magnitude and the structure of the underlying production technology we model the technology of a competitive profit maximizing multi product firm with the dual profit function this enables us to use hotelling s lemma to generate a system of profit maximizing output supply and input demand equations these equations are then modified to allow for the possibility of technical and three types of allocative inefficiency a virtue of using the profit function to represent production technology is that it permits a straightforward comparison of maximum profit under full efficiency with actual profit and with the profit that would result from any combination of the four types of inefficiency this enables us to allocate the cost of inefficiency to each of four components our model of inefficiency is parametric and is embedded in a generalized leontief profit function although any flexible specification of the profit function can be used the model is developed in sections ii iv estimation of the model is considered in section v an empirical example designed to illustrate the workings of the model is discussed in section vi section vii concludes

diversification cones trade costs and factor market linkages abstract this paper finds non uniform differences in the distribution functions of factor usage intensities among 10 rich oecd countries the 10 countries form three distinct groups such that the between group differences are more pronounced than within group differences and capital abundant countries are in capital abundant groups the estimation works even if the same industry codes represent different goods across countries in the data the finding is consistent with the multiple cone factor proportions theory with zero trade costs with each group being one cone an alternative interpretation is non zero trade costs both interpretations imply weak factor market linkages between the countries in different groups

malmquist indices of productivity growth during the deregulation of norwegian banking 1980 89 productivity growth during the deregulation of the norwegian banking industry is studied within the framework of data envelopment analysis which explicitly allows for multiple outputs introducing malmquist indices for productivity growth total growth can be decomposed into frontier growth and change in each bank s distance to the frontier both the total growth index and its components can be consistently chained over time we find productivity regress at the average bank prior to the deregulation but rapid growth when deregulation took place deregulation also led to less dispersion of productivity levels within the industry

returns to scale in different dea models abstract this paper discusses returns to scale rts in data envelopment analysis dea for each of the presently available types of models the bcc and ccr models are treated in input oriented forms while the multiplicative model is treated in output oriented form this distinction is not pertinent for the additive model which simultaneously maximizes outputs and minimizes inputs in the sense of a vector optimization quantitative estimates in the form of scale elasticities are treated in the context of multiplicative models but the bulk of the discussion is confined to qualitative characterizations such as whether rts is identified as increasing decreasing or constant this is discussed for each type of model and relations between the results for the different models are established the opening section describes and delimits approaches to be examined the concluding section outlines further opportunities for research

beyond the algebra of explanation hov for the technology age it is hard to believe that factor endowments theory could offer an adequate explanation of international trade patterns while the theory adequately predicts saudi arabian oil exports it hardly seems appropriate for explaining the revolutionary impact of new technologies on world trade yet to take this position is to misunderstand the thrust of recent empirical research in international trade research that is giving shape to a new generation of heckscher ohlin vanek hov thinking the core of this new thinking is a class of hov predictions that allow for international differences in technology and choice of techniques the literature is in the process of rapid evolution as a result the key questions tend to get lost there have been three of them first what empirical regularities account for the poor performance of the hov model second are there alternative assumptions about technology that lead to better test results for the model both of these are interesting questions but they hardly constitute an end point for understanding the impacts of international trade as edward e leamer 1993 p 439 pointed out e conomists ought to abandon the idea that models are either true or false in favor of the notion that models are sometimes useful and sometimes misleading the third and most important question is whether the hov model provides a useful framework for thinking about international technology differences in spite of the defects of the model the answer is a definite yes 9

measurement of the factor content of foreign trade with traded intermediate goods abstract in a recent article helpman 1984 develops readily testable bilateral restrictions in a model of international trade which preserves the spirit of heckscher ohlin trade theory important in any empirical exploration of the heckscher ohlin model is the decision of whether to employ direct or direct plus indirect calculations in determining the factor content of trade this paper extends helpman s analysis to a world of freely traded intermediate goods and shows that direct factor content calculations are the theoretically appropriate measure for use in evaluating these empirical implications of the heckscher ohlin model

indian bank efficiency and productivity changes with undesirable outputs a disaggregated approach the objective of this study is to examine technical efficiency and productivity growth in the indian banking sector over the period from 2004 to 2011 we apply an innovative methodological approach introduced by chen et al 2011 and barros et al 2012 who use a weighted russell directional distance model to measure technical inefficiency we further modify and extend that model to measure tfp change with npls we find that the inefficiency levels are significantly different among the three ownership structure of banks in india foreign banks have strong market position in india and they pull the production frontier in a more efficient direction spbs and domestic private banks show considerably higher inefficiency we conclude that the restructuring policy applied in the late 1990s and early 2000s by the indian government has not had a long lasting effect

determinants of bank market structure efficiency and political economy variables abstract this paper analyzes the influence of bank efficiency and political economy variables on bank market structure market share and market concentration using a panel data of 2 592 banks from 69 countries over the 1996 2002 period results indicate that the validity of the efficiency structure hypothesis to explain bank market structure varies across countries depending on national political economy variables in particular higher entry requirements more generous deposit insurance and higher extent of government bank ownership reduce the positive influence of bank efficiency on market share and market concentration however tighter restrictions on bank activities better quality of the contracting environment more market monitoring and more market orientation and development of the financial system increase the positive influence of bank efficiency on market share and market concentration jel classification g18 g21 g28 keywords banking structure efficiency regulations supervision institutions

total factor productivity growth technological progress and technical efficiency change dimensions of productivity change in yugoslavia 1965 1978 this article total factor productivity growth technological progress and technical efficiency change dimensions of productivity change in yugoslavia 1965 78 was reprinted with permission from the december 1982 issue of the economic journal this article proposes a methodology that decomposes total factor productivity change into two distinct elements technological progress and changes in technical efficiency technological progress is defined as the change in the best practice production frontier all other productivity change is attributed to technical efficiency change the article provides a theoretical framework for decomposing total factor productivity growth as well as a specification and estimation of the deterministic frontier production function it employs a programming technique to estimate a flexible functional form of the production frontier the paper then applies this technique to empirical data from yugoslavia of the period from 1965 to 1978 it concludes that for yugoslavia improvements to technical efficiency comprise the dominant contribution to total factor productivity change this agrees with accumulating evidence that in many developing economies productivity gain due to technological mastery of imported technology is substantial

fiscal policy profits and investment this paper evaluates the effects of fiscal policy on investment using a panel of oecd countries we find a sizeable negative effect of public spending and in particular of its wage component on profits and on business investment this result is consistent with different theoretical models in which government employment creates wage pressure for the private sector various types of taxes also have negative effects on profits but interestingly the effects of government spending on investment are larger than those of taxes our results can explain the so called non keynesian i e expansionary effects of fiscal adjustments jel e22 e62

technical scale and allocative efficiencies in u s banking an empirical investigation a nonparametric frontier approach is used to calculate the overall technical pure technical allocative and scale efficiencies for a sample of 322 independent banks the sample was drawn from the federal deposit insurance corporation tapes on the reports of condition and reports of income call reports for the year 1986 the results indicated a low level of overall efficiency the main source of inefficiency was technical in nature rather than allocative separate efficiency frontiers were constructed to test the effect of branching however the distributions of efficiency measures for branching and non branching banks were not found to be different

graph efficiency and productivity measures an application to us agriculture hyperbolic measures of efficiency and productivity change with respect to a graph representation of production technology allow researchers to consider output and input dimensions simultaneously in measuring producer performance hyperbolic efficiency measures have been proposed but empirical implementation has not followed either in efficiency analysis or in productivity analysis the objectives of this paper are to define hyperbolic performance measures on a graph representation of production technology to motivate their use by stating some of their advantages over their radial counterparts and to introduce a direct formulation to calculate them making use of data envelopment analysis techniques the ideas are illustrated by calculating hyperbolic efficiency and malmquist productivity indexes for a us agricultural panel data set

efficiency a dynamic approach abstract most firms work with a technology less efficient than the best available in a dynamic context this is perfectly rational since it is uneconomical to scrap old capital equipment as soon as a new and better model appears in the market in a dynamic context we would expect a difference between the observable technology of a firm and the technological frontier a sort of rational inefficiency in this paper we construct an equilibrium growth model that allows us to calculate the size of this particular inefficiency and we discuss how it relates to the efficiency measures in the widely used farell model

incentive efficient production frontiers an agency perspective on dea in this paper we examine how empirical production frontiers may contribute to the incentives of production units we consider a series of data envelopment analysis dea frontiers and we show when these may be incentive efficient in the sense that they contain all the information that are relevant for optimal incentive provision the frontiers considered include the so called constant decreasing and varying return to scale models the free disposability and the free replicability models as well as the increasing and decreasing return to scale models based on a relaxed set of assumptions also we illustrate how to design optimal incentive schemes based on such frontiers contents 1 introduction 2 the incentive problem 3 production frontiers and productivity measures 4 incentive efficient production frontiers 5 extensions 6 an example 7 final remarks mathematical appendix references

mergers and technical efficiency in spanish savings banks a stochastic distance function approach abstract the aim of this paper is to test the temporal variation of technical efficiency of spanish savings banks during the period 1985 1998 furthermore we test whether merged and non merged firms have different levels and temporal patterns of technical efficiency a stochastic output distance function r w shephard theory of cost and production functions princeton university press princeton nj is employed to accommodate multiple output technology the distance function provides the advantage that it does not need information about prices so it can accommodate the multi product nature of the financial sector only using the quantities as data an important point when the assumptions about perfectly competitive markets are unlikely to be met the temporal variation of efficiency is modeled extending the battese and coelli journal of productivity analysis 3 1992 153 169 approach in two ways relaxing the monotonicity of the temporal variation pattern of the efficiency term and allowing for different patterns of efficiency change between merged and non merged firms

banking efficiency in the nordic countries abstract evidence of the relative competitiveness of the banking industries in three nordic countries is provided by applying data envelopment analysis of productivity on the national and the pooled data sets the analysis produces a detailed account of how well banks from different countries and different sizes may be prepared to meet the more intense competition of a common european banking market

productivity in multiple output public service a quadratic frontier function and malmquist index approach abstract the purpose of this study is to analyse the development of productivity and structural efficiency for an extended period of time 1974 to 1987 in the production of public social insurance services in sweden the analysis is based on the estimation of a deterministic flexible single input multiple output frontier production function the findings indicate a productivity decrease for the entire period from 1974 to 1987 of 18 percent in the period 1974 to 1982 productivity decreased by approximately 30 percent but at the end of the period 1984 to 1987 there was a productivity recovery of about 11 percent

cost efficiency in bangladesh banking does financial reform matter abstractthis article estimates the cost efficiency of the commercial banks of bangladesh in the context of financial reform employing the single stage stochastic frontier analysis sfa model the study uses a unique balanced panel data set comprising bank level annual data from the dominant commercial banks in bangladesh for the period 1983 2012 the results show that bank cost has fallen due to financial deregulation our results from the data envelopment analysis do not vary significantly that we obtained from the sfa in addition the presence of politically linked directors on the bank board has an adverse effect on efficiency these findings suggest that further reforms aiming at removing all sorts of political influence should continue to ensure competitive environment in order to achieve cost efficiency in the financial sector of the country

the static and dynamic environmental efficiency of renewable energy a malmquist index analysis of oecd countries abstract in recent years renewable energy and environmental efficiency have been interesting issues for both academics and industry actors when discussing sustainable development against this background the present study examines the environmental efficiency of renewable energy from the static and the dynamic perspective in 31 oecd countries a study conducted to understand the impact of renewable energy across countries as a non parametric methodology data envelopment analysis is used to measure environmental efficiency through multiple inputs and outputs labor capital and renewable energy supply are the three inputs while gdp is the desirable output and carbon emissions are the undesirable output to measure the dynamic environmental efficiency of renewable energy the malmquist productivity index is applied to estimate the average efficiency change from 2004 to 2011 the results demonstrate geographical differences in environmental efficiency across the oecd countries in oecd america have the highest average environmental efficiency and those in oecd europe have the largest standard deviation we also find that dynamic efficiency is influenced by the global financial crisis triggered in the united states further we show that oecd countries implement both catch up and frontier shift strategies to improve environmental efficiency

rationality of energy efficiency improvement targets under the pat scheme in india a case of thermal power plants abstract the market based perform achieve and trade scheme was introduced in india to enhance the energy efficiency of energy intensive sectors and for thermal power plants by reducing their specific energy consumption within the framework of a tradable certificate scheme international experience suggests that effectiveness of such schemes is greatly influenced by the assigned targets of the obligated units setting rational targets is thus a key aspect of successful implementation of the scheme in the present study we examine the rationality of the targets set for the power sector of india based on comparing it with energy saving potential of the plants and the targets assigned to the respective plants data envelopment analysis models are used to determine relative efficiency and energy saving potential the study results indicate that in most cases i the targets are much less than the actual potentials of the thermal power sector ii there exist substantial inefficiencies within the system in both energy use and managerial dexterity and iii if the sector realizes its full potential then the energy saving certificate market may witness a surplus of 4 7 million certificates on account of thermal power sector alone

assessing eco efficiency through the dea analysis and decoupling index in the latin america countries abstract this study was developed according to a two step approach in the first step we provide an investigation of the changes in eco efficiency under constant and variable return to scale while on a second step the evaluation of the decoupling elasticity will be given the impacts of energy economic and environmental determinants inputs on the performance indicators of eco efficiency were calculated as the inverse of the carbon intensity ratio of the gdp over the co2 emissions both from the world development indicators database the changes in eco efficiency and the decoupling elasticity between co2 emissions and economic growth changes data was used for 16 latin america countries according to five year periods from 1994 to 2013 for all the five time span considered it is worth noting that the degree of technical efficiency for the latin america countries is lower than the degree of technological efficiency thus indicating that a portion of the overall inefficiency is due to the fact that these countries are producing below the production frontier rather than to an inefficient use of technology on average the results have confirmed that the technological scale change in energy production is the dominant factor influencing the optimal production frontier in the sample of countries under analysis complementarily according to the mixed results from the decoupling analysis we may conclude that the increase decrease of the co2 per capita emissions was due to other economic and environmental factors rather than to a negative positive effect of the gdp growth rate

is there a single frontier in a single european banking market abstract this paper attempts to estimate comparable efficiency scores for european banks operating in the single market in the eu using a data set of more than 5000 large commercial banks from all major european banking markets over the period 1993 2004 the application of meta frontiers enables us to assess the existence of a single and integrated european banking market we find evidence in favor of a single european banking market characterized by cost and profit meta frontiers however compared to the meta frontier estimations pooled frontier estimations tend to underestimate efficiency levels and correlate poorly with country specific frontier efficiency ranks

the role of the reference technology in measuring productive efficiency after a twenty year lull the measurement of productive efficiency is enjoying a revival in particular the index of efficiency developed by debreu i95i and later utilised by farrell i957 has received considerable attention these measures have been used fairly extensively in empirical work in both the operations research and economic literature these types of indexes have also appeared in the growing literature on testing for regularity conditions in production e g in afriat i972 diewert and parkan i983 and varian 1984 since the farrell type measure is the focus in this paper a brief review is useful in the farrell framework overall efficiency oe can be decomposed into two multiplicative components allocative efficiency ae and technical efficiency te

the effects of deregulation on the performance of financial institutions the case of spanish savings banks this paper examines the impact of regulatory reform on the performance of spanish savings banks the focus is whether increased competition brought on by deregulation affected performance of banks over time output technical efficiency which is defined in terms of the production possibility frontier is also examined empirical results show declining levels of output technical efficiency along with a significantly high rate of technical progress in spite of declining technical efficiency during this period evidence of an increasing trend in productivity growth is found

measuring the macroeconomic performance of the taiwanese economy abstract in this paper i construct a scalar valued summary measure of the macroeconomic performance of an economy the measure combines any number of conventional but noncommensurate performance indicators the basic idea behind the procedure is to use mathematical programming techniques of efficiency measurement to construct a best practice macroeconomic performance frontier and then to measure performance in terms of an indicator based efficiency score the procedure is applied to a set of ten asian economies over the past two decades with special attention paid to taiwan

regional analysis across colombian departments a non parametric study of energy use abstract the analysis of energy use is important in emerging economies and especially in the manufacturing industries as energy is a key factor of sustainable development this research analyses and evaluates the features of regional energy use and efficiency across colombian departments in the manufacturing industries for the period between 2005 and 2013 by applying two malmquist data envelopment analysis models the results indicate significant difference in energy use and efficiency across colombian departments in the manufacturing industries the results of the malmquist indexes determine that various manufacturing industries across colombian departments have a high potential to increase energy efficiency several manufacturing industries across colombian departments have experienced gains in productivity a growth in efficiency an improvement in the relationship between inputs and outputs and scale production and advances in innovation through new technologies this technique allows to make comparisons and improves energy policies to increase energy efficiency and decrease co 2 emissions the application of panel data models indicate that increases in energy prices exports and productivity lead to better energy use while a higher presence of energy intensive sectors and small and medium enterprises across colombian departments reduce energy efficiency the methods selected in this research generated consistent robust and reliable estimates related to energy use and co 2 emissions for regional studies the findings of this study indicate that diverse energy policies should implement in the industrial sector across colombian departments and that they should contribute to improvements in energy use especially in small and medium companies and energy intensive sectors

technical efficiency of european railways a distance function approach this study has two principal objectives the first objective is to measure and compare the performance of european railways the second objective is to illustrate the usefulness of econometric distance functions in the analysis of production in multioutput industries where behavioural assumptions such as cost minimization or profit maximization are unlikely to be applicable using annual data on 17 railways companies during 1988 1993 multioutput distance functions are estimated using corrected ordinary least squares cols the resulting technical efficiency estimates range from 0 980 for the netherlands to 0 784 for italy with a mean of 0 863 the distance function results are also compared with those obtained from single output production functions where aggregate output measures are formed using either total revenue or a tornqvist index the results obtained indicate substantial differences in parameter estimates and technical efficiency rankings casting significant doubt upon the reliability of

malmquist type indices in the presence of negative data an application to bank branches in this paper we develop an index and an indicator of productivity change that can be used with negative data for that purpose the range directional model rdm a particular case of the directional distance function is used for computing efficiency in the presence of negative data we use rdm efficiency measures to arrive at a malmquist type index which can reflect productivity change and we use rdm inefficiency measures to arrive at a luenberger productivity indicator and relate the two the productivity index and indicator are developed relative to a fixed meta technology and so they are referred to as a meta malmquist index and meta luenberger indicator we also address the fact that vrs technologies are used for computing the productivity index and indicator a requirement under negative data which raises issues relating to the interpretability of the index we illustrate how the meta malmquist index can be used not only for comparing the performance of a unit in two time periods but also for comparing the performance of two different units at the same or different time periods the proposed approach is then applied to a sample of bank branches where negative data were involved the paper shows how the approach yields information from a variety of perspectives on performance which management can use

the measurement and sources of technical inefficiency in the indonesian weaving industry production function models are estimated with a time series of cross section data on indonesian weaving establishments the sources of technical inefficiency are investigated three firm attributes are identified as being potentially related to firm efhciency tbey are firm ownership age and size the importance of these attributes as sources of inefficiency in the indonesian weaving industry is investigated and the implications of the find ings discussed

export diversification what s behind the hump hy should export diversification be taken as a policy objective per se there are two reasons that it should not first according to ricardo countries should specialize not diversify second the heckscher ohlin model implies that export patterns are largely determined by endowments so if anything we should worry about factor accumulation not diversification yet export diversification is a constant preoccupation of policymakers in developing countries as de ferranti et al 2002 note a recurrent preoccupation of latin american policymakers is that their natural riches produce a highly concentrated structure of export revenues which then leads to economic volatility and lower growth p 38 the notion that export patterns are fully determined by endowments is of course naive the relationship of endowments trade and growth is a complex and imperfectly understood one intra industry trade models showed long ago that many factors other than endowments including market failures and policies can affect trade patterns more recently hausmann hwang and rodrik 2007 argued that export patterns can display path dependence in the presence of externalities

productivity growth technical progress and efficiency change in industrialized countries this paper analyzes productivity growth in 17 oecd countries over the period 1979 1988 a nonparametric programming method activity analysis is used to compute malmquist productivity indexes these are decomposed into two component measures namely technical change and efficiency change we find that u s productivity growth is slightly higher than average all of which is due to technical change japan s productivity growth is the highest in the sample with almost half due to efficiency change jel c43 d24 in this paper we apply recently developed

pesticide use environmental spillovers and efficiency a dea risk adjusted efficiency approach applied to dutch arable farming pesticides are widely used by crop producers in developed countries to combat risk associated with pests and diseases however their indiscriminate use can lead to various environmental spillovers that may alter the agricultural production environment thus contributing to production risk this study utilises a data envelopment analysis dea approach to measure performance of arable farms incorporating pesticides environmental spillovers and output variance as undesirable outputs in the efficiency analysis and taking explicitly into account the effect of pesticides and other inputs on production risk the application focuses on panel data from dutch arable farms over the period 2003 2007 a moment approach is used to compute output variance providing empirical representations of the risk increasing or decreasing nature of the used inputs finally shadow values of risk adjusted inputs are computed we find that pesticides are overused in dutch arable farming and there is a considerable evidence of the need for decreasing pesticides environmental spillovers

a note on banking efficiency in portugal new vs old banks following entry into the european community in 1986 portugal transformed rapidly its repressed banking system with deregulation the opening of borders the granting of new banking licenses and privatization in a more competitive banking system one would expect a priori an increase in operational efficiency this paper attempts to quantify the magnitude of efficiency gains over the years 1990 1995 moreover the paper documents the relative efficiency performance of new domestic banks not hampered by a legacy of inefficiency from the past they could operate nearer the efficiency frontier the case of portugal provides unique information on the joint effect of deregulation and the granting of new banking licenses on the change in operational efficiency of a previously repressed banking system

oligopolistic models of investment and employment decisions in a regional context the purpose of this paper is to analyse and estimate employment and investment functions derived from a model of an imperfectly competitive firm with a putty clay technology in which both the level and the spatial allocation of factors of production are determined it will be shown that in general while for a given region the choice of technique is a function of factor prices of that region alone the optimal level of production depends upon a comparison of cost conditions across different regions in estimating the investment and employment function attention is paid to the appropriate way of modelling expected output the empirical application is based on data for southern italy disaggregated by industrial sectors using a fixed effect time series cross section model

investment models and expectations some estimates for the italian industrial sector the essential characteristic of investment decisions is that they are inherently forward looking as they depend upon the expectations of future values of the relevant variables in the specification of investment functions it is crucial therefore to start from a model of a firm s behavior that provides a rationale for the importance of future events at the same time in empirical work one must pay attention to the choice of appropriate proxies for the expectational variables in this paper we shall examine the effects on investment expenditure of expected output and factor prices starting from a putty clay model of the firm and using aggregate data on the industrial sector for italy in section 2 the implications for the specification of the investment function of the assumption of a putty clay technology and of the existence of delivery lag will be summarized following nickell 1979 the discussion will be extended here to the case of quadratic adjustment costs in section 3 the problems involved in obtaining a proxy for expected output are discussed the method used here is based on the theory of optimal predictors rational expectations within a multivariate time series framework in sections 4 and 5 the estimates of the invest