In this chapter, the concepts of technical efficiency, efficiency, effectiveness, and productivity are illustrated. It is discussed that when firms are not homogeneous, the…
Abstract
In this chapter, the concepts of technical efficiency, efficiency, effectiveness, and productivity are illustrated. It is discussed that when firms are not homogeneous, the situation is the same as when each factor has a different unit of measurement from one firm to another, and therefore, no meaningful discrimination can be expressed, unless a set of known weights are introduced to standardize data. A linear programming data envelopment analysis model is used when a set of known weights are given to calculate the technical efficiency and efficiency of a set of homogeneous DMUs with multiple input factors and output factors. A numerical example is also provided.
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This paper is concerned with recent work in the theory of information retrieval. More particularly, it is concerned with theories which tackle the problem of retrieval…
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This paper is concerned with recent work in the theory of information retrieval. More particularly, it is concerned with theories which tackle the problem of retrieval performance, in a sense which will be explained. The aim is not an exhaustive survey of such work; rather it is an analysis and synthesis of those contributions which I feel to be important or find interesting.
Due to its high leverage nature, a bank suffers vitally from the credit risk it inherently bears. As a result, managing credit is the ultimate responsibility of a bank. In this…
Abstract
Due to its high leverage nature, a bank suffers vitally from the credit risk it inherently bears. As a result, managing credit is the ultimate responsibility of a bank. In this chapter, we examine how efficiently banks manage their credit risk via a powerful tool used widely in the decision/management science area called data envelopment analysis (DEA). Among various existing versions, our DEA is a two-stage, dynamic model that captures how each bank performs relative to its peer banks in terms of value creation and credit risk control. Using data from the largest 22 banks in the United States over the period of 1996 till 2013, we have identified leading banks such as First Bank systems and Bank of New York Mellon before and after mergers and acquisitions, respectively. With the goal of preventing financial crises such as the one that occurred in 2008, a conceptual model of credit risk reduction and management (CRR&M) is proposed in the final section of this study. Discussions on strategy formulations at both the individual bank level and the national level are provided. With the help of our two-stage DEA-based decision support systems and CRR&M-driven strategies, policy/decision-makers in a banking sector can identify improvement opportunities regarding value creation and risk mitigation. The effective tool and procedures presented in this work will help banks worldwide manage the unknown and become more resilient to potential credit crises in the 21st century.
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Mauro Falasca and John F. Kros
As the pressure to win and generate revenue and as the allegations of out-of-control spending continue to increase, there exists much interest in intercollegiate athletics. While…
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As the pressure to win and generate revenue and as the allegations of out-of-control spending continue to increase, there exists much interest in intercollegiate athletics. While researchers in the past have investigated specific issues related to athletics success, revenue generation, and graduation rates, no previous studies have attempted to evaluate these factors simultaneously. This chapter discusses the development of a data envelopment analysis (DEA) model aimed at measuring how efficient university athletic departments are in terms of the use of resources to achieve athletics success, generate revenue, and promote academic success and on-time graduation. Data from National Collegiate Athletic Association (NCAA) Division I Football Bowl Subdivision (FBS) universities are used to evaluate the relative efficiency of the institutions. The model identifies a series of “best-practice” universities which are used to calculate efficient target resource levels for inefficient institutions. The value of the proposed methodology to decision makers is discussed.
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Yaw M. Mensah, Kevin C. K. Lam and Robert H. Werner
We present, in this study, a method for comparing the relative effectiveness of different non-profit institutions with similar objectives. In addition, we show how this measure of…
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We present, in this study, a method for comparing the relative effectiveness of different non-profit institutions with similar objectives. In addition, we show how this measure of relative effectiveness is related theoretically to their relative efficiency. Relative effectiveness is shown to be a product of the efficacy with which potentially utilizable resources can be converted into usable inputs, and the efficiency with which the inputs are converted to outputs or outcomes. Finally, drawing on developments in data envelopment analysis, we illustrate the new methodology using data from 109 institutions of higher education.
Universities are expected to operate with high efficiency, with ever-growing expectations from a rising number of stakeholders in society. From a theoretical perspective economic…
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Universities are expected to operate with high efficiency, with ever-growing expectations from a rising number of stakeholders in society. From a theoretical perspective economic science does provide frameworks and methods in order to tackle this, with the cornerstone of defining efficiency as a simple relation of a quantity of inputs toward a quantity of outputs. For the practice of university management and policy this does not answer the crucial questions of which inputs and which outputs to measure, and how to ensure the quality aspect of such management approaches. Higher education research can contribute to answering these questions. This chapter outlines a sector-specific framework for efficiency analysis and management, including suggestions regarding how to implement efficiency-improving measures in university settings.
Taqi N. Al‐Faraj, Abdulaziz S. Alidi and Khalid A. Bu‐Bshait
Details a data envelopment analysis (DEA) study of bank branches,where the bank branches are considered as the decision‐making units(DMUs). The Charnes, Cooper and Rhodes (CCR…
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Details a data envelopment analysis (DEA) study of bank branches, where the bank branches are considered as the decision‐making units (DMUs). The Charnes, Cooper and Rhodes (CCR) ratio is used to evaluate the relative efficiency of each branch. The relative efficiency is computed utilizing specific input and output factors. The study has been applied to a set of branches of one of the largest commercial banks in Saudi Arabia in an attempt to evaluate the relative efficiency of these branches in order to improve the quality of services and utilize the available resources more efficiently.