Empirical Surveys of Frontier Applications: A Meta-Review
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paper_title: Statistical Approaches for Nonparametric Frontier Models: A Guided Tour

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type="main" xml:id="insr12056-abs-0001"> A rich theory of production and analysis of productive efficiency has developed since the pioneering work by Tjalling C. Koopmans and Gerard Debreu. Michael J. Farrell published the first empirical study, and it appeared in a statistical journal (Journal of the Royal Statistical Society), even though the article provided no statistical theory. The literature in econometrics, management sciences, operations research and mathematical statistics has since been enriched by hundreds of papers trying to develop or implement new tools for analysing productivity and efficiency of firms. Both parametric and non-parametric approaches have been proposed. The mathematical challenge is to derive estimators of production, cost, revenue or profit frontiers, which represent, in the case of production frontiers, the optimal loci of combinations of inputs (like labour, energy and capital) and outputs (the products or services produced by the firms). Optimality is defined in terms of various economic considerations. Then the efficiency of a particular unit is measured by its distance to the estimated frontier. The statistical problem can be viewed as the problem of estimating the support of a multivariate random variable, subject to some shape constraints, in multiple dimensions. These techniques are applied in thousands of papers in the economic and business literature. This ‘guided tour’ reviews the development of various non-parametric approaches since the early work of Farrell. Remaining challenges and open issues in this challenging arena are also described. © 2014 The Authors. International Statistical Review © 2014 International Statistical Institute
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paper_title: Efficiency and productivity

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This chapter begins with a brief discussion of variations in productive efficiency using airlines as an example. It then presents the main purpose of the book, which is to study inefficiency in production and its impact on economic and financial performance. The chapter then provides background material and focuses on hypotheses that have been proposed in literature that would explain variation in producer performance; lays the theoretical foundation for the measurement of productive efficiency; offers a brief introduction to alternative techniques that have been developed to quantify inefficiency empirically; introduces various econometric approaches to efficiency estimation; introduces variants of the mathematical programming approach to efficiency estimation; introduces the Malmquist productivity index and shows how to decompose it into various sources of productivity change, including variation in productive efficiency; and describes three ways of approximating a Malmquist productivity index: the use of superlative index numbers, the use of econometric techniques, and the use of mathematical programming techniques. An overview of the succeeding chapters is also presented
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paper_title: The Structure of Technical Efficiency

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It is common practice to decompose measures of efficiency into component measures of technical and allocative efficiency. In this paper we show how, and why, to decompose a general measure of technical efficiency into component measures of purely technical efficiency, congestion, and scale efficiency, and we investigate the properties of each measure. We do so for a multiple-output technology which satisfies a weak axiom system that does not include either constant returns to scale or strong input disposability.
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paper_title: A review of Dynamic Data Envelopment Analysis: state of the art and applications

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This article reports the evolution of the literature on Dynamic Data Envelopment Analysis (DDEA) models from 1996 to 2016. Systematic searches in the databases Scopus and Web of Science were performed to outline the state of the art. The results enabled the establishment of DDEA studies as the scope of this article, analyzing the transition elements to represent temporal interdependence. The categorization of these studies enabled the mapping of the evolution of the DDEA literature and identification of the relationships between models. The three most widely adopted studies to conduct DDEA research were classified as structuring models. Mapping elucidated the literature behavior through three phases and showed an increase in publications with applications in recent years. The analysis of applications indicated that most studies address evaluations in the agriculture and farming, banking and energy sectors and consider the facilities as transition elements between analysis periods.
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paper_title: Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis

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In management contexts, mathematical programming is usually used to evaluate a collection of possible alternative courses of action en route to selecting one which is best. In this capacity, mathematical programming serves as a planning aid to management. Data Envelopment Analysis reverses this role and employs mathematical programming to obtain ex post facto evaluations of the relative efficiency of management accomplishments, however they may have been planned or executed. Mathematical programming is thereby extended for use as a tool for control and evaluation of past accomplishments as well as a tool to aid in planning future activities. The CCR ratio form introduced by Charnes, Cooper and Rhodes, as part of their Data Envelopment Analysis approach, comprehends both technical and scale inefficiencies via the optimal value of the ratio form, as obtained directly from the data without requiring a priori specification of weights and/or explicit delineation of assumed functional forms of relations between inputs and outputs. A separation into technical and scale efficiencies is accomplished by the methods developed in this paper without altering the latter conditions for use of DEA directly on observational data. Technical inefficiencies are identified with failures to achieve best possible output levels and/or usage of excessive amounts of inputs. Methods for identifying and correcting the magnitudes of these inefficiencies, as supplied in prior work, are illustrated. In the present paper, a new separate variable is introduced which makes it possible to determine whether operations were conducted in regions of increasing, constant or decreasing returns to scale in multiple input and multiple output situations. The results are discussed and related not only to classical single output economics but also to more modern versions of economics which are identified with "contestable market theories."
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paper_title: A survey on bank branch efficiency and performance research with data envelopment analysis

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The banking industry has been the object of DEA analyses by a significant number of researchers and probably is the most heavily studied of all business sectors. Various DEA models have been applied in performance assessing problems, and the banks' complex production processes have further motivated the extension and improvement of DEA techniques. This paper surveys 80 published DEA applications in 24 countries/areas that specifically focus on bank branches. Key issues related to the design of DEA models in these studies are discussed. Much advice is included on how to design future experiments and studies in this domain. A number of areas where further research could be fruitful are suggested.
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paper_title: Measuring the efficiency of decision making units

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Abstract A nonlinear (nonconvex) programming model provides a new definition of efficiency for use in evaluating activities of not-for-profit entities participating in public programs. A scalar measure of the efficiency of each participating unit is thereby provided, along with methods for objectively determining weights by reference to the observational data for the multiple outputs and multiple inputs that characterize such programs. Equivalences are established to ordinary linear programming models for effecting computations. The duals to these linear programming models provide a new way for estimating extremal relations from observational data. Connections between engineering and economic approaches to efficiency are delineated along with new interpretations and ways of using them in evaluating and controlling managerial behavior in public programs.
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paper_title: Bayesian analysis of stochastic frontier models

paper_content:

In this chapter, we described a Bayesian approach to efficiency analysis using stochastic frontier models. With cross-sectional data and a log-linear frontier, a simple Gibbs sampler can be used to carry out Bayesian inference. In the case of a nonlinear frontier, more complicated posterior simulation methods are necessary. Bayesian efficiency measurement with panel data is then discussed. We show how a Bayesian analogue of the classical fixed effects panel data model can be used to calculate the efficiency of each firm relative to the most efficient firm. However, absolute efficiency calculations are precluded in this model and inference on efficiencies can be quite sensitive to prior assumptions. Accordingly, we describe a Bayesian analogue of the classical random effects panel data model which can be used for robust inference on absolute efficiencies. Throughout, we emphasize the computational methods necessary to carry out Bayesian inference. We show how random number generation from well-known distributions is sufficient to develop posterior simulators for a wide variety of models.
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paper_title: Human development and data envelopment analysis: A structured literature review

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Given the importance the concept of productive efficiency has on analyzing the human development process, which is complex and multidimensional, this study conducts a literature review on the research works that have used the data envelopment analysis (DEA) to measure and analyze the development process. Therefore, we researched the databases of Scopus and Web of Science, and considered the following analysis dimensions: bibliometrics, scope, DEA models and extensions used, interfaces with other techniques, units analyzed and depth of analysis. In addition to a brief summary, the main gaps in each analysis dimension were assessed, which may serve to guide future researches.
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paper_title: A Taxonomy for Data Envelopment Analysis

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This paper presents a scheme for classifying the Data Envelopment Analysis (DEA) literature. The taxonomy allows one to distinguish articles on the basis of the data source used (D) if any, the type of envelopment (E) invoked, the approach to analysis (A) used, and the nature (N) of the paper. Each of the above attributes D, E, A and N (DEAN) are further subdivided to obtain a detailed description of each article comprising this rather wide-ranging field of knowledge. Sample articles are classified to illustrate the descriptive power and the parsimony of this taxonomy.
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paper_title: Epistemology of data envelopment analysis and comparison with other fields of OR/MS for relevance to applications

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Periodically, professionals in a given field must reflect and assess where the field has been, where it is heading, and what if anything, should be done to change that field's course. This article discusses statistical trends within the Data Envelopment Analysis (DEA) literature. The number of articles published per year in refereed journals over the entire lifespan of the field, authorship and publishing outlets-of-choice statistics are used to indicate DEA's vitality, relevance, diffusion to other disciplines/professions and its worldwide acceptance. Lastly, based on published meta reviews, comparisons are made with other OR/MS sub-disciplines.
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paper_title: Data envelopment analysis 1978–2010: A citation-based literature survey

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This study surveys the data envelopment analysis (DEA) literature by applying a citation-based approach. The main goals are to find a set of papers playing the central role in DEA development and to discover the latest active DEA subareas. A directional network is constructed based on citation relationships among academic papers. After assigning an importance index to each link in the citation network, main DEA development paths emerge. We examine various types of main paths, including local main path, global main path, and multiple main paths. The analysis result suggests, as expected, that Charnes et al. (1978) [Charnes A, Cooper WW, Rhodes E. Measuring the efficiency of decision making units. European Journal of Operational Research 1978; 2(6): 429–444] is the most influential DEA paper. The five most active DEA subareas in recent years are identified; among them the “two-stage contextual factor evaluation framework” is relatively more active. Aside from the main path analysis, we summarize basic statistics on DEA journals and researchers. A growth curve analysis hints that the DEA literature’s size will eventually grow to at least double the size of the existing literature.
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paper_title: A review of Dynamic Data Envelopment Analysis: state of the art and applications

paper_content:

This article reports the evolution of the literature on Dynamic Data Envelopment Analysis (DDEA) models from 1996 to 2016. Systematic searches in the databases Scopus and Web of Science were performed to outline the state of the art. The results enabled the establishment of DDEA studies as the scope of this article, analyzing the transition elements to represent temporal interdependence. The categorization of these studies enabled the mapping of the evolution of the DDEA literature and identification of the relationships between models. The three most widely adopted studies to conduct DDEA research were classified as structuring models. Mapping elucidated the literature behavior through three phases and showed an increase in publications with applications in recent years. The analysis of applications indicated that most studies address evaluations in the agriculture and farming, banking and energy sectors and consider the facilities as transition elements between analysis periods.
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paper_title: Trajectories of efficiency measurement: A bibliometric analysis of DEA and SFA

paper_content:

This study surveys the increasing research field of performance measurement by making use of a bibliometric literature analysis. We concentrate on two approaches, namely Data Envelopment Analysis (DEA) and Stochastic Frontier Analysis (SFA) as the most important methods to evaluate the efficiency of individual and organizational performance. It is the first literature survey that analyses DEA and SFA publications jointly, covering contributions published in journals, indexed by the Web of Science database from 1978 to 2012. Our aim is to identify seminal papers, playing a major role in DEA and SFA development and to determine areas of adoption. We recognized a constant growth of publications during the years identifying DEA as a standard technique in Operations Research, whereas SFA is mainly adopted in Economic research fields. Making use of document co-citation analysis we identify Airports and Supplier Selection (DEA) as well as Banking and Agriculture (SFA) as most influential application areas. Furthermore, Sensitivity and Fuzzy Set Theory (DEA) as well as Bayesian Analysis and Heterogeneity (SFA) are found to be most influential research areas and seem to be methodological trends. By developing an adoption rate of knowledge we identify that research, in terms of citations, is more focusing on relatively old and recent research at the expenses of middle-aged contributions, which is a typical phenomenon of a fast developing discipline.
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paper_title: Measuring the efficiency of decision making units

paper_content:

Abstract A nonlinear (nonconvex) programming model provides a new definition of efficiency for use in evaluating activities of not-for-profit entities participating in public programs. A scalar measure of the efficiency of each participating unit is thereby provided, along with methods for objectively determining weights by reference to the observational data for the multiple outputs and multiple inputs that characterize such programs. Equivalences are established to ordinary linear programming models for effecting computations. The duals to these linear programming models provide a new way for estimating extremal relations from observational data. Connections between engineering and economic approaches to efficiency are delineated along with new interpretations and ways of using them in evaluating and controlling managerial behavior in public programs.
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paper_title: Research fronts in data envelopment analysis

paper_content:

Research activities relating to data envelopment analysis (DEA) have grown at a fast rate recently. Exactly what activities have been carrying the research momentum forward is a question of particular interest to the research community. The purpose of this study is to find these research activities, or research fronts, in DEA. A research front refers to a coherent topic or issue addressed by a group of research articles in recent years. The large amount of DEA literature makes it difficult to use any traditional qualitative methodology to sort out the matter. Thus, this study applies a network clustering method to group the literature through a citation network established from the DEA literature over the period 2000 to 2014. The keywords of the articles in each discovered group help pinpoint its research focus. The four research fronts identified are “bootstrapping and two-stage analysis”, “undesirable factors”, “cross-efficiency and ranking”, and “network DEA, dynamic DEA, and SBM”. Each research front is then examined with key-route main path analysis to uncover the elements in its core. In addition to presenting the research fronts, this study also updates the main paths and author statistics of DEA development since its inception and compares them with those reported in a previous study.
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paper_title: Bayesian analysis of stochastic frontier models

paper_content:

In this chapter, we described a Bayesian approach to efficiency analysis using stochastic frontier models. With cross-sectional data and a log-linear frontier, a simple Gibbs sampler can be used to carry out Bayesian inference. In the case of a nonlinear frontier, more complicated posterior simulation methods are necessary. Bayesian efficiency measurement with panel data is then discussed. We show how a Bayesian analogue of the classical fixed effects panel data model can be used to calculate the efficiency of each firm relative to the most efficient firm. However, absolute efficiency calculations are precluded in this model and inference on efficiencies can be quite sensitive to prior assumptions. Accordingly, we describe a Bayesian analogue of the classical random effects panel data model which can be used for robust inference on absolute efficiencies. Throughout, we emphasize the computational methods necessary to carry out Bayesian inference. We show how random number generation from well-known distributions is sufficient to develop posterior simulators for a wide variety of models.
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paper_title: Evaluation of research in efficiency and productivity: a survey and analysis of the first 30 years of scholarly literature in DEA

paper_content:

Since the original Data Envelopment Analysis (DEA) study by Charnes et al. [Measuring the efficiency of decision-making units. European Journal of Operational Research 1978;2(6):429-44], there has been rapid and continuous growth in the field. As a result, a considerable amount of published research has appeared, with a significant portion focused on DEA applications of efficiency and productivity in both public and private sector activities. While several bibliographic collections have been reported, a comprehensive listing and analysis of DEA research covering its first 30 years of history is not available. This paper thus presents an extensive, if not nearly complete, listing of DEA research covering theoretical developments as well as "real-world" applications from inception to the year 2007. A listing of the most utilized/relevant journals, a keyword analysis, and selected statistics are presented.
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paper_title: Data envelopment analysis: The evolution of the state of the art (1978–1995)

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The purpose of this paper is to briefly trace the evolution of DEA from the initial publication by Charnes et al. (1978b) to the current state of the art (SOA). The state of development of DEA is characterized at four points in time to provide a perspective in both directions—past and future. An evolution map is provided which illustrates DEA growth during the 17-year period, the timing of the major events, and the interconnections and influences between topics. An extensive DEA bibliography is provided.
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paper_title: Organizing knowledge syntheses: A taxonomy of literature reviews

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A taxonomy of literature reviews in education and psychology is presented. The taxonomy categorizes reviews according to: (a) focus; (b) goal; (c) perspective; (d) coverage; (e) organization; and (f) audience. The seven winners of the American Educational Research Association’s Research Review Award are used to illustrate the taxonomy’s categories. Data on the reliability of taxonomy codings when applied by readers is presented. Results of a survey of review authors provides baseline data on how frequently different types of reviews appear in the education and psychology literature. How the taxonomy might help in judging the quality of literature reviews is discussed, along with more general standards for evaluating reviews.
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paper_title: Data Envelopment Analysis: Theory, Methodology and Application

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Preface G. Kozmetsky. Part I: Concepts, Models & Computation. 1. Introduction. 2. Basic DEA Models. 3. Extensions to DEA Models. 4. Computational Aspects of DEA A. Iqbal Ali. 5. DEA Software Packages. Part II: Novel Applications. 6. Evaluating the Impacts of Operating Strategies on Efficiency in the U.S. Airline Industry R.D. Banker, H.H. Johnston. 7. Analyzing Technical and Allocative Efficiency of Hospitals P. Byrnes, V. Valdmanis. 8. A Multi Period Analysis of Market Segments and Brand Efficiency in the Competitive Carbonated Beverage Industry A. Charnes, W.w. Cooper, B. Golanyi, F.Y. Phillips, J.J. Rousseau. 9. Exploring why Some Physicians' Hospital Practices are More Efficient: Taking DEA Inside the Hospital J. Chilingerian. 10. On the Measurement and Monitoring of Relative Efficiency of Highway Maintenance Patrols W.D. Cook, A. Kazakov, Y. Roll. 11. Strategic Leaders in the U.S. Brewing Industry: a Longitudinal Analysis of Outliers D. Day, A.Y. Lewin, R. Salazar, Hongyu Li. 12. A Spatial Efficiency Framework for the Support of Locational Decision A. Desai, K. Haynes, J. Storbeck. 13. Productivity Developments in Swedish Hospitals: a Malmquist Output Index Approach R. Fare, S. Grosskopf, B. Lindgren, P. Roos. 14. Ownership Type, Property Rights and Relative Efficiency G. Ferrier. 15. A Comparative Analysis of Ferry Transport in Norway F.R. Forsund, E. Hernaes. 16. Incorporating Standards via Data Envelopment Analysis B. Golany, Y. Roll. 17.Stratified Models of Education Production Using Modified DEA and Regression Analysis C.A. Knox Lovell, L.C. Walters, L.L. Woods. 18. The Problems of New and Disappearing Commodities in the Construction of Price Indexes C.A. Knox Lovell, K.D. Zieschang. 19. Evaluating the Relative Efficiency of Baseball Players? M.J. Mazur. 20. Sensitivity Analysis of Efficiency Measures with Applications to Kansas Farming and Illinois Coal Mining R. Thompson, P.S. Dharmapala, R.M. Thrall. Part III: Epilogue: Process and Bibliography. 21. The DEA Process, Usages and Interpretations. 22. DEA Bibliography L.M. Seiford. References. Index.
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paper_title: Towards a Methodology for Developing Evidence-Informed Management Knowledge by Means of Systematic Review

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Undertaking a review of the literature is an important part of any research project. The researcher both maps and assesses the relevant intellectual territory in order to specify a research question which will further develop the knowledge hase. However, traditional 'narrative' reviews frequently lack thoroughness, and in many cases are not undertaken as genuine pieces of investigatory science. Consequently they can lack a means for making sense of what the collection of studies is saying. These reviews can he hiased by the researcher and often lack rigour. Furthermore, the use of reviews of the available evidence to provide insights and guidance for intervention into operational needs of practitioners and policymakers has largely been of secondary importance. For practitioners, making sense of a mass of often-contrad ictory evidence has hecome progressively harder. The quality of evidence underpinning decision-making and action has heen questioned, for inadequate or incomplete evidence seriously impedes policy formulation and implementation. In exploring ways in which evidence-informed management reviews might be achieved, the authors evaluate the process of systematic review used in the medical sciences. Over the last fifteen years, medical science has attempted to improve the review process hy synthesizing research in a systematic, transparent, and reproducihie manner with the twin aims of enhancing the knowledge hase and informing policymaking and practice. This paper evaluates the extent to which the process of systematic review can be applied to the management field in order to produce a reliable knowledge stock and enhanced practice by developing context-sensitive research. The paper highlights the challenges in developing an appropriate methodology.
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paper_title: Efficiency in European Banking

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Abstract This paper extends the established literature on modelling the cost characteristics of banking markets by applying the flexible Fourier functional form and stochastic cost frontier methodologies to estimate scale economies, X-inefficiencies and technical change for a large sample of European banks between 1989 and 1997. The results reveal that scale economies are widespread for smallest banks and those in the ECU 1 billion to ECU 5 billion assets size range. Typically, scale economies are found to range between 5% and 7%, while X-inefficiency measures appear to be much larger, between 20% and 25%. X-inefficiencies also appear to vary to a greater extent across different markets, bank sizes and over time. This suggests that banks of all sizes can obtain greater cost savings through reducing managerial and other inefficiencies. This paper also shows that technical progress has had a similar influence across European banking markets between 1989 and 1997, reducing total costs by around 3% per annum. The impact of technical progress in reducing bank costs is also shown to systematically increase with bank size. Overall, these results indicate that Europe's largest banks benefit most from technical progress although they do not appear to have scale economy advantages over their smaller counterparts.
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paper_title: Deregulation and Efficiency of Indian Banks

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List of tables List of figures List of abbreviations Preface 1 Introduction 1.1 Background 1.2 Motivation, objectives and significant research questions 1.3 Contribution of the book 1.4 Structure of the book 2 Banking System in India: Developments, Structural Changes and Institutional Framework 2.1 Introduction 2.2 Developments in Indian banking sector 2.2.1 Initial formative phase: Prior to independence 2.2.2 Foundation phase: From 1947 to early 1960s 2.2.3 Expansion phase: From mid 1960s to late1980s 2.2.4 Reforms phase: early 1990s onwards 2.3 Structural changes and transformations in India banking sector 2.3.1 Increased availability of lendable resources 2.3.2 Movements towards market-driven interest rate system 2.3.3 Heightened competition 2.3.4 More exposure to off-balance sheet (OBS) activities 2.3.5 Improvement in asset quality 2.3.6 Penetration of information technology 2.3.7 Consolidation through mergers 2.4 Current structure of Indian banking sector 2.5 Conclusions 3 Measurement of Bank Efficiency: Analytical Methods 3.1 Introduction 3.2 Data envelopment analysis (DEA) 3.2.1 Non-allocation DEA models 3.2.1.1 The CCR model 3.2.1.1.1 CCR-I 3.2.1.1.2 CCR-O 3.2.1.2 The BCC model 3.2.1.2.1 BCC-I 3.2.1.2.2 BCC-O 3.2.1.3 Additive model 3.2.1.4 Multiplicative model 3.2.1.5 Non-radial slack-based measures (SBM) model 3.2.2 Extensions of basic non-allocation DEA models 3.2.2.1 Super-efficiency models 3.2.2.2 Cross-efficiency models 3.2.2.3 Non-discretionary input and output variables models 3.2.2.4 Assurance region models 3.2.3 Allocation DEA models 3.2.3.1 Cost efficiency DEA models 3.2.3.2 Revenue efficiency DEA models 3.2.3.3 Profit efficiency DEA models 3.3 Panel data DEA models 3.3.1 Window analysis 3.3.2 Malmquist productivity index (MPI) 3.3.2.1 A graphical conceptualization 3.3.2.1.1 Output-oriented framework 3.3.2.1.2 Input-oriented framework 3.3.2.2 DEA-based estimation of Malmquist productivity index 3.4 Strengths, limitations, basic requirements and outcomes of DEA 3.4.1 Strengths and limitations 3.4.2 Basic requirements 3.4.3 Outcomes 3.5 Free disposal hull (FDH) analysis 3.6 Stochastic frontier analysis (SFA) 3.6.1 Panel data framework 3.6.1.1 Time-invariant efficiency models 3.6.1.1.1 Fixed-effects model 3.6.1.1.2 Random-effects model 3.6.1.2 Time-variant efficiency models 3.6.2 Stochastic distance functions 3.6.3 Marrying DEA with SFA 3.7 Other parametric approaches 3.7.1 Distribution free approach (DFA) 3.7.2 Thick frontier analysis (TFA) 3.7.3 Recursive thick frontier analysis (RTFA) 3.8 Comparison of DEA and SFA 3.9 Conclusions 4 A Survey of Empirical Literature on Bank Efficiency 4.1 Introduction 4.2 Deregulation and bank efficiency 4.2.1 International experience 4.2.2 Indian experience 4.3 Bank ownership and efficiency 4.3.1 International experience 4.3.2 Indian experience 4.4 Cross-country efficiency comparisons 4.5 Mergers and acquisitions (M&As), and bank efficiency 4.6 Major issues in bank efficiency analyses 4.6.1 Selection of inputs and outputs 4.6.2 Choice of estimation methodology 4.7 Conclusions 5 Relevance of Non-traditional Activities on the Efficiency of Indian Banks 5.1 Introduction 5.2 Non-traditional activities in Indian banking industry 5.3 Non-traditional activities and efficiency of banks: some empirical evidences 5.4 Methodological framework 5.4.1 Cost efficiency and its components: concept and measurement approaches 5.4.2 DEA models 5.5 Data and measurement of input and output variables 5.6 Empirical results 5.6.1 Non-traditional activities and bank efficiency 5.6.2 Non-traditional activities and ranking of individual banks 5.6.3 Non-traditional activities and efficiency of ownership groups 5.6.4 Non-traditional activities and ranking of ownership groups 5.7 Conclusions 6 Financial Deregulation in the Indian Banking Industry: Has it improved cost efficiency? 6.1 Introduction 6.2 Deregulation and cost efficiency: Relevant literature review 6.3 Methodological framework 6.4 Data and measurement of input and output variables 6.5 Empirical results 6.5.1 Estimation strategy 6.5.2 Trends in cost (in)efficiency at industry level 6.5.3 Comparison of efficiency across distinct ownership groups 6.5.4 Comparison of efficiency in domestic and foreign banks 6.5.5 Bank size and efficiency 6.5.6 Returns-to-scale 6.5.7 Factors explaining inter-bank variations in efficiency measures 6.6 Conclusions 7 Sources of Productivity Gains in Indian Banking Industry: Is it Efficiency Improvement or Technological Progress? 7.1 Introduction 7.2 Relevant literature review 7.2.1 Deregulation and productivity change: International experience 7.2.2 Deregulation and productivity change: Indian experience 7.3 Methodological framework 7.4 Database, input-output variables and empirical setting for TFP measurement 7.5 Empirical results 7.5.1 Level of technical efficiency 7.5.2 TFP growth in Indian banking industry 7.5.3 TFP growth across distinct ownership groups 7.5.4 TFP growth in domestic and foreign banks 7.5.5 TFP growth across distinct size classes 7.5.6 Technological innovators 7.5.7 Factors affecting TFP growth 7.6 Conclusions 8 Major conclusions, policy implications and some areas for future research 8.1 Introduction 8.2 Major conclusions 8.3 Policy implications 8.4 Some areas for future research References Index
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paper_title: What Drives the Performance of Financial Institutions

paper_content:

The financial sector is one of the most, if not the most significant economic sector in modern societies. In advanced countries, it employs more people than major manufacturing industries combined and accounts for a high percentage of the Gross Domestic Product. But the financial services sector also plays a large indirect role in national economies. The financial sector mobilizes savings and allocates credit across space and time, and enables firms and households to cope with uncertainties by hedging, pooling, sharing and pricing risks. This ultimately improves the quantity and quality of real investments and increases income per capita and raises standards of living. Today financial institutions are experiencing unprecedented change in a competitive global environment. Economies of scale that lead to more integrated automation lead to further economies of scope. Technological innovation adds competitive pressures, and provides opportunities for new non-traditional providers. Consumers themselves may be the strongest force of change in the financial services industry since their needs are evolving quickly. Banking institutions are being transformed from financial intermediaries to retail service providers - they now formulate products for clients or intermediaries, sell and service a range of products to customers and also provide the support functions needed for the successful execution of its primary activities. The authors ask how they can measure performance of a financial institution in this changing landscape? Traditional productivity measures are difficult to compute and tell us less than they used to. The authors also seek to identify what drives performance and identify three dimensions of performance drivers to explore: strategy; execution of strategy; and the environment. To begin, the authors define performance to mean economic performance as measured by financial indicators. Quality of services and effective risk management help explain strong performance levels. Strategic decisions that affect an institution's success involve product mix, client mix, geographical location, and distribution channels. In terms of strategy execution, the authors cite x-efficiency, human resource management, use of technology, process design, and the successful alignment of all these components as important factors in successful firm performance. Creating the right technology environment also has a significant impact on performance. The remainder of this paper summarizes the fifteen chapters of a book edited by the authors on performance and its drivers. The book is divided into three section: General; Drivers of Performance; and Environmental Drivers of Performance. There are also two chapters at the end that discuss performance and risk management. The authors then briefly discuss possible future research directions, including the relationship between operational efficiency and quality of services, the balance between risk management and retail services in bank activities, and study of interorganizational issues.
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paper_title: Incentives and performance : governance of research organizations

paper_content:

Performance Management.- Performance Measurement.- Incentives: Monetary or Non-Monetary? Extrinsic or Intrinsic?- Innovation and Creativity: Fostering and Impeding Conditions.- Innovative Approaches to Research Evaluation.- What Research Organizations Can Learn From Knowledge-Intensive Business.- Applied Contributions, Country and Case Studies.- Incentives and Performance: What We Can Learn From a Fairy Tale.
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paper_title: Efficiency studies in forestry using data envelopment analysis

paper_content:

This paper presents the results of a sawing simulation study examining the effects of the rotational orientation of the log and the depth of the opening cut on the value of hardwood lumber produced with 1995 and 2004 lumber prices. First, three-dimensional virtual logs were reconstructed on the computer using computed tomography (CT) images of seven red oak logs. To determine the optimal opening cut face, simulations of live sawing 4/4-inch lumber were conducted by rotating the virtual logs at 15-degree increments and increasing the cutting depth for the opening face in 1/16-inch increments. Results suggest that rotational orientation and depth of the opening cut significantly affect the value of lumber produced. The optimal rotational orientation and opening position outperformed the mean of 432 possible combinations by 19.5 percent with the 1995 lumber prices. With the 2004 lumber prices, the gain was 14.7 percent. With either set of prices, a combination of the right rotational orientation and a random opening cut depth increased the value of lumber produced by 5 percent over the mean of 432 possible combinations, and 8 percent when the depth chosen was within 1/8 inch of the optimum. On the other hand, with either set of prices a combination of the optimal opening cut depth and a random rotational angle resulted in no gain over the mean value derived for the 432 combinations. This improved to 6 percent with the 1995 lumber prices and 4 percent with the 2004 lumber prices as the control for rotational orientation improved to within 30 degrees of the optimum. When both the rotational orientation of the log and the depth of the opening cut were jointly considered, with the 1995 lumber prices the gain increased from 3.6 to 5.7 percent over the average of all 432 combinations as control over the rotational orientation and opening depth improved from within 30 degrees and 1/8 inch to 15 degrees and 1/16 inch, respectively. Similarly, with the 2004 lumber prices, the gain increased from 2.9 to 4.4 percent. As such, early log scanners need not be highly precise to deliver significant value to hardwood sawmills that adopt this technology.
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paper_title: Productivity and efficiency assessment of the wood industry : A review with a focus on Canada

paper_content:

The efficiency and productivity of the wood products manufacturing sector have been evaluated by many researchers. Productivity growth compensates for price increases and enhances competitiveness. Technical efficiency, which is the efficiency of converting inputs to outputs, directly affects costs and consequently profits and capital investments. Considering the importance of efficiency and productivity studies, this paper provides an introduction to performance assessment approaches and reviews the literature on productivity and efficiency studies of the Canadian wood industry. It concludes that further research in this area may develop by incorporating factors and aspects specific to the wood industry and including desirable and undesirable outputs of the production process into the models. Comparative analyses with other regions and temporal efficiency studies can also help in evaluating and monitoring the performance of wood producers in Canada and identifying improvement policies.
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paper_title: Estimating Inefficiencies in Banking: A survey

paper_content:

This paper presents a review of the extensive literature concerned with estimating production and cost inefficiencies in banks. The meaning of inefficiency in this context is outlined, alternative estimation techniques are summarised and the problems of modelling the activities of banks and measuring their inputs and outputs are discussed. By including more non-US studies than previous surveys, the paper produces a more comprehensive summary and comparison of inefficiency results than has previously been attempted. The paper ends with a set of recommendations for future researchers in the area.
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paper_title: Non-parametric and parametric applications measuring efficiency in health care.

paper_content:

This paper reviews 188 published papers on frontier efficiency measurement. The techniques used are mainly based on non-parametric data envelopment analysis, but there is increasing use of parametric techniques, such as stochastic frontier analysis. Applications both to hospitals and wider health care areas are reviewed and summarised, and some meta-type analysis undertaken. Results appear to confirm earlier findings that public provision demonstrates less variability than private. The paper is meant as a resource in itself, but also points to the future in terms of possible directions for research in efficiency measurement in health care and health.
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paper_title: Visualizing Bibliometric Networks

paper_content:

This chapter provides an introduction to the topic of visualizing bibliometric networks. First, the most commonly studied types of bibliometric networks (i.e., citation, co-citation, bibliographic coupling, keyword co-occurrence, and coauthorship networks) are discussed, and three popular visualization approaches (i.e., distance-based, graph-based, and timeline-based approaches) are distinguished. Next, an overview is given of a number of software tools that can be used for visualizing bibliometric networks. In the second part of the chapter, the focus is specifically on two software tools: VOSviewer and CitNetExplorer. The techniques used by these tools to construct, analyze, and visualize bibliometric networks are discussed. In addition, tutorials are offered that demonstrate in a step-by-step manner how both tools can be used. Finally, the chapter concludes with a discussion of the limitations and the proper use of bibliometric network visualizations and with a summary of some ongoing and future developments.
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Title: Empirical Surveys of Frontier Applications: A Meta-Review

Section 1: Introduction
Description 1: Introduce the development and importance of the field of efficiency and productivity analysis using frontier estimation methodologies over the past four decades and present the main objectives and contributions of the paper.

Section 2: Research Reviews in Context
Description 2: Discuss the importance of literature reviews in scientific research, the focus and goals of different types of literature reviews, and how the meta-survey fits within the broader field of efficiency and productivity literature.

Section 3: Methodological Notes
Description 3: Explain the methodological approach of the meta-survey, including eligibility criteria, explicit methodology, systematic search process, and systematic presentation and synthesis of the findings.

Section 4: Systematic Search
Description 4: Provide details about the systematic search process used in the meta-survey, including the development of search queries, expert knowledge integration, and the results of the search.

Section 5: Classification of Literature
Description 5: Describe the classification of empirical surveys using the International Standard Industrial Classification (ISIC) and Journal of Economic Literature (JEL) codes, highlighting gaps and overlaps in the surveyed areas.

Section 6: Mapping the State of the Art: Identification of Empirical Gaps and Overlaps
Description 6: Present the mapping of the current state of empirical surveys using network representations and co-occurrence analysis to identify gaps and overlaps in the literature.

Section 7: Concluding Remarks
Description 7: Summarize the main findings and contributions of the meta-survey, discuss limitations, and suggest directions for future research and developments in the field.