• Title/Summary/Keyword: Efficiency frontier

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A Study on the Efficiency Analysis of Abalone Aquaculture in Wando Region Using Stochastic Frontier Approach (SFA를 이용한 전복 양식업의 지역별 효율성분석에 관한 연구 - 완도지역을 중심으로 -)

  • Kim, Hye-Seong;Song, Jung-Hun
    • The Journal of Fisheries Business Administration
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    • v.43 no.2
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    • pp.67-77
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    • 2012
  • Based on the survey on aquaculture management status in Nohwa-eup, Bogil-myeon, Wando-eup in Wando region, this study aimed to estimate productive efficiencies of abalone aquaculture production using a stochastic frontier approach (SFA) and to find out their determinants. In the analysis, a Cobb-Douglas production function with an inefficiency term that follows an halfnormal distribution was assumed for the estimation of productive efficiencies. Then, based on the outcomes of productive efficiencies, determinants of productive efficiency were investigated using a tobit regression model. Results showed that the average inefficiency was estimated to be 10% and the production size would be a statistically significant variable for the production. In addition, it was shown that the cage installing method would be an important factor affecting to the level of productive efficiency.

A Comparison of Efficiency Estimation Methods via Monte Carlo Analysis (몬테카를로 분석에 의한 효율성 추정방법의 비교)

  • 최태성;김성호
    • Korean Management Science Review
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    • v.19 no.1
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    • pp.117-128
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    • 2002
  • In this Paper we investigate the performance of the five efficiency estimation methods which include the stochastic frontier model estimated by maximum likelihood (SFML), the stochastic frontier model estimated by corrected ordinary least squares (SFCOLS), the data envelopment analysis (DIA) model, the combined estimation of SFML and DEA (SFML + DEA), and the combined estimation of SFCOLS arid DIA (SFCOLS+ DEA) using Monte Carlo analysis. The results include: 1) SFML provides most accurate efficiency estimates for the sample sloe 150 or over,2) SFML+DEAor SFCOLS + DIA Perform better for the cases with sample sloe 25, 50, and low random errors, 3) SFCOLS performs better for the close with sample sloe 25, 50, and very high random errors.

Technical Inefficiency Effects and Technological Change in Bangladesh Food Industry: A Stochastic Frontier Analysis

  • Rana, Md. Masud;Baten, Md. Azizul;Rabman, Mezbahur
    • Journal of the Korean Data and Information Science Society
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    • v.19 no.4
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    • pp.1449-1463
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    • 2008
  • This paper considers three different models with two functional forms, Cobb-Douglas and Translog, for the stochastic frontier production function of food manufacturing industry of Bangladesh over the period 1981-1982 to 1999-2000. The models are proposed by Battese and Coelli (1992, 1995) and Huang and Liu (1994). The technical efficiency, total factor productivity, technological change and technical efficiency change have been estimated in the frontier models. The results indicate that 41.47%, 59.30% and 70.98% of the potential output are being realized in this sector. The mean increments in total factor productivity are approximately 2%, 9% and 4% respectively.

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An Analysis on the Efficiency of Container Terminal using Stochastic Frontier Model (SFM을 이용한 컨테이너터미널의 효율성 분석)

  • Kim Un-Soo;Kwak Kyu-Seok
    • Journal of Navigation and Port Research
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    • v.29 no.1 s.97
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    • pp.105-111
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    • 2005
  • Recently, global terminal operotors are struggling to attract more cargoes into their ports through enlarging facilities and trying to be more efficient operotion Many researches on container terminal efficiency have been conducted, but most of the traditional studies are focused on the partial efficiency of the container terminal using quantitative questionnaires and basic statistical data In this paper, the Stochastic Frontier Model of the interaction among the variables was employed to execute numerical analysis on the efficiency of terminal. The objective of this paper is to measure the level of efficiency in the container terminals every year and to assess the influence in container terminal's efficiency on domestic and foreign terminals by changing the terminal scales and the level of input factors.

An Efficiency Analysis of Information and Communications Technologies (ICT) using Nonparametric Frontier Analysis (비모수 프런티어 접근을 통한 ICT 효율성 분석 연구)

  • Kim, Changhee;Yang, Hongsuk;Kim, Soo Wook
    • Journal of Information Technology Services
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    • v.16 no.4
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    • pp.1-13
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    • 2017
  • This study examines how specific technology from Information and Communications Technology (ICT)-which plays a critical role in increasing productivity by promoting a spread of technology across the society though the use of big data, mobile or wearable devices-impacts of the productivity of society and productivity of added values, respectively. The impact of technology was studied from the perspective of efficiency levels of input. In order to provide an analysis, we have categorized ICT into 16 specific technologies and have set the number of companies and number of employees each as an input factor while setting the respective output and the output of added values as an output factor. Afterwards, we have applied data envelopment analysis (DEA) which is a form of nonparametric frontier analysis and measured the productivity and efficiency of added values for each technology. According to the analysis results, there were 2 technologies by the CRS standards, and 3 technologies by the VRS standards that showed relative efficiency levels. We have also presented some efficiency improvement strategies for specific technologies that revealed relative inefficiency and offered a reference set and projection point. In addition, we provide an analysis on scale efficiencies (SE), diminishing returns to scale (DRS), and increasing returns to scale (IRS) of each ICT.

A Brief Empirical Investigation of Seaport Clustering by Using Meta-Frontier and Cross-efficiency Models (메타프론티어와 교차효율성 모형을 통한 항만 클러스터링의 실증적 검증소고)

  • Park, Ro-Kyung
    • Korea Trade Review
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    • v.41 no.3
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    • pp.27-42
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    • 2016
  • This study is to investigate seaport clustering by using meta-frontier and cross-efficiency models. Data covers the 13 Asian ports during 2009, 2010 and 2013 with 3 inputs(depth, total area, and number of cranes) and 1 output(TEU). Correlations coefficient from cross-efficiency matrix are used for measuring clustering dendrogram. After that, meta-frontier analysis for investigating whether the clustering using cross-efficiency method increases the meta-efficiency. Empirical main results are as follows: First, group efficiencies of Busan, Incheon, and Gwangyang ports are increased. Second, meta and group efficiencies of China ports are greater than those of Korean ports. Third, distortion of technology gap of Gwangyang is lower than that of Busan and Incheon. Fourth, Gwangyang, clustering with Ningbo, Chingtao, Tokyo and Caosung ports in 2009 and with Dubai port in 2013 can increase the efficiency. Fifth, to enhance the efficiency, Busan port should be clustered to group 2 in 2010 and group 1 in 2013, and Incheon port clustered to group 2 in 2010 and 2013. Fifth, it is empirically investigated that Busan, Incheon and Gwangyang ports can increase the efficiency by using Cross-efficiency and Meta-frontier models. Port policy planner should promote the clustering policy for Busan with Hong Kong, Shanghai, and Singapore, Incheon and Gwangyang with Chingtao, Nagoya, Ningbo, Tokyo, and Kaoshung ports.

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DEA를 이용한 통신 사업자의 효율성 측정에 관한 연구

  • 김찬규;김현종
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 2001.10a
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    • pp.213-217
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    • 2001
  • This paper deals with the estimation of efficiency of Telecommunication Operators(TOs) using DEA (Data Envelopment Analysis). The measure of efficiency using DEA accomplishes next two steps. First, the efficient frontier is derived using the data of input and output. And then the efficiency of the decision making units are measured by the distances from this frontier To measure efficiency, we consider a one-output, three-input production function. We use the tangible assets, investment cost, the number of employees for input data and measure the output by the revenue. After measuring the efficiency, We can compare the domestic TOs with the international TOs and the wire TOs with wireless ones by average efficiency. After accomplishing the analysis of efficiency, the internal/external efficiency is measured simultaneously through correlation between efficiency and profitability, quality level.

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An Analysis on the Factors Affecting Rice Production Efficiency in Myanmar

  • Tun, YuYu;Kang, Hye-Jung
    • East Asian Economic Review
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    • v.19 no.2
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    • pp.167-188
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    • 2015
  • The objective of this study is to obtain a better understanding of the current rice production condition in Myanmar through efficiency analysis, especially, to examine the impact of farm mechanization on Myanmar rice production efficiency. For representation of efficiency and the determinants, this paper uses both the data envelopment analysis (DEA) and the stochastic frontier approach (SFA) with variable returns to scale on Myanmar rice production. The efficiency of the rice production was estimated and subsequently the determinants factors were investigated based on the estimated efficiency level of these sample farmers. The empirical evidence finds that farm mechanical tools significantly improve the Myanmar rice production efficiency.

A Comparative Study of the Relationship between Port Effeciency and Ownership Structure (항만 소유구조에 따른 효율성 모형 비교연구)

  • Hwang, Jin-Soo;Jorn, Hong-Suk;Kan, Sung-Chan
    • The Korean Journal of Applied Statistics
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    • v.22 no.6
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    • pp.1167-1176
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    • 2009
  • Few studies have investigated the quantitative relationship between port ownership structure and port efficiency with mixed results. This paper therefore contributes to the empirical literature by investigating the impact of port privatization on port efficiency using sample data drawn from the world's major ports. Moreover, this study applies the Bayesian approach to estimate the impact of port ownership on port efficiency. We fit Bayesian stochastic frontier model which is introduced by Griffin and Steel (2007) by WinBUGS. World's 25 main ports data are used for analysis. Based on MCMC sampling, we estimate parameters of the model and efficiency index of each ports. Moreover, we add estimates from package Frontier 4.1c in order to compare them with Bayesian results.

Measuring the efficiency and determinants of rice production in Myanmar: a translog stochastic frontier approach

  • Wai, Khine Zar;Hong, Seungjee
    • Korean Journal of Agricultural Science
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    • v.48 no.1
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    • pp.59-71
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    • 2021
  • This study investigated the extent to which rice producers from the Ayeyarwaddy Region of Myanmar could improve their productivity if inputs were used efficiently in rice cultivation. To achieve this objective, simple random sampling was used to collect data from 300 rice growers in the study area. Data were analyzed with the translog stochastic frontier approach to understand the production efficiencies. The study further estimated the influencing factors that affect the efficiency levels of rice farmers. The empirical result reveals that the average technical, allocative, and economic efficiencies were at 76.11, 47.85, and 34.15%, respectively. This suggests that there is considerable room for improving rice production by better utilization of the available resources at the current level of technology. This study suggests that strenthening agricultural training programs and adoption of improved rice varieties may reduce overall inefficiencies among rice farmers in Myanmar. Factors like age, household size, education, farming experience, farm size, rice variety, training, and off-farm income have a significant impact on increasing/decreasing farmer's efficiency. Efficiency can be improved by establishing farmer field school programs to increase the scale of operations. The government should encourage young educated people to participate in paddy production and also intervene to reduce input prices and control the quality of seeds.