Efficiency decomposition in two-stage data envelopment analysis: An application to non-life insurance companies in Taiwan

Kao, Chiang; Hwang, Shiuh Nan

doi:10.1016/j.ejor.2006.11.041

Cited by 1,107 publications

(809 citation statements)

References 15 publications

(16 reference statements)

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“…The inputs are administrative costs and health expenditures, and the output is the underwriting gain or loss. This is similar to the profit efficiency model by Kao and Hwang (2008) but without considering the intermediate inputs and outputs. Specifically, the DEA profit efficiency score is the optimal ratio of the underwriting gain or loss over the weighted sum of administrative costs and health expenditures, where the weights are determined by the DEA optimization problem.…”

Section: Profit Efficiency and Entry And Exit Of Medicare Advantage Pmentioning

confidence: 52%

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Potential “Savings” of Medicare: The Analysis of Medicare Advantage and Accountable Care Organizations

Brockett

Golden

Yang

2018

North American Actuarial Journal

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Medicare faces significant financial challenges because of rising health care costs. In response, Medicare reform efforts have been testing various payment and service delivery models, including accountable care organizations (ACOs), aiming to reduce expenditures while preserving or enhancing the coordination of quality care. The idea behind ACOs is to form an organizational network to coordinate all care for Medicare beneficiaries and in so doing, at least theoretically, improve quality of care and hopefully reduce medical costs. The purpose of this research is to apply Data Envelopment Analysis (DEA) to assess the potential savings of Medicare obtainable through optimally efficient implementation of ACOs and Medicare Advantage plans. DEA comparisons across plans achieve this purpose by identifying which Medicare plans operate relatively more efficiently and which are inefficient, and additionally, for inefficient plans, the DEA analysis generates target levels of "inputs" and "outputs" required to bring the plan into efficient operation. Knowing sources of inefficiency can also provide insights into Medicare reform, such as Medicare privatization and innovation models. Our results show that Medicare Advantage plans are more efficient in reducing health expenditures but incur higher administrative costs. Health expenditure savings can also be achievable by promoting government-sponsored managed Medicare such as ACOs. Finally, compared to the profit efficiency of Medicaid managed care plans, Medicare Advantage should have the potential for more Medicare market penetration from the supply (insurer) side.

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Section: Profit Efficiency and Entry And Exit Of Medicare Advantage Pmentioning

confidence: 52%

“…Thus capital inputs are not included in the analysis. An explicit capital input is also not included in some insurer profit efficiency studies in the literature, such as Kao and Hwang (2008).…”

Section: Data and Research Designmentioning

confidence: 99%

Potential “Savings” of Medicare: The Analysis of Medicare Advantage and Accountable Care Organizations

Brockett

Golden

Yang

2018

North American Actuarial Journal

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“…VZA'nın bu kısıtınının üstesinden gelmek amacıyla çeşitli yaklaşımlar geliştirilmiştir. Bu yaklaşımlar bankacılık (Seiford ve Zhu, 1999;Chen ve Zhu, 2004) ve sigortacılık (Kao ve Hwang, 2008;Chen vd. 2009) gibi sektörlere uygulanmış olsa da, birkaç istisna haricinde (Yun vd.…”

Section: Introductionunclassified

Proposal of a Two-Stage Model For Measuring The Port Efficiency And An Implication On Turkish Ports

Güner¹

2015

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In the port operating process, it is aimed to use various infrastructure and superstructure inputs for freight handling and serving ships and intended to generate revenue from handled freights and served ships. Therefore, two sequential stages appear in the port operating process. In this process, the outputs from the first stage are the inputs to the second stage. Port managers would aim to maximize the freight handled and the number of served ships with using the existing resources in the first stage and then, maximize the revenue from handled freights and served ships in the second stage. Data Envelopment Analysis (DEA) which is the most widely used technique to estimate port efficiency was designed for the single stage processes and it is inadequate in two-stage operations. In order to overcome this limitation, some DEA based two-stage techniques were developed and used. In this study, a two-stage DEA model was proposed for measuring the port efficiency and applied to a number of Turkish ports. Results show that two-stage DEA approach provides more proper results than those in single stage DEA when there are sequential stages. It is expected that the proposed two-stage DEA model may contribute both literature and practice. Keywords: Efficiency, two-stages, port, data envelopment analysis Jel Code: C19, C44, I18 LİMAN ETKİNLİĞİ ÖLÇÜMÜNDE İKİ AŞAMALI BİR MODEL ÖNERİSİ VE TÜRK LİMANLARI ÜZERİNDE BİR UYGULAMA ÖzetLiman işletim sürecinde, çeşitli altyapı ve üstyapı girdilerini kullanarak yük elleçlemek ve limana gelen gemilere hizmet vermek, elleçlenen bu yüklerden ve hizmet verilen gemilerden de gelir elde etmek amaçlanır. Dolayısıyla, liman işletim sürecinde karşımıza birbirini takip eden iki aşamalı bir süreç çıkmaktadır. Bu süreçte birinci aşamanın çıktıları, ikinci aşamanın girdilerini oluşturmaktadır. Liman yönetimi, birinci aşamada kullanılan kaynaklar ile en yüksek seviyede yük elleçlemeyi ve en fazla sayıda gemiye hizmet vermeyi, ikinci aşamada ise elleçlenen bu yüklerden ve hizmet verilen gemilerden maksimum seviyede gelir elde etmeyi amaçlar. Liman etkinliğinin ölçülmesinde en sık kullanılan yöntem olan Veri Zarflama Analizi (VZA), tek bir sürecin etkinliğini ölçmek için tasarlanmıştır. Birbirini takip eden bir sürecin etkinliğini ölçmek için ise VZA temelli çeşitli iki aşamalı etkinlik ölçüm teknikleri geliştirilmiştir. Bu araştırmada, liman etkinliklerinin ölçümünde kullanılabilecek iki aşamalı bir VZA modeli önerilmiş ve Türk limanları üzerinde uygulanmıştır. Sonuçlar, birbirini takip eden süreçler söz konusu olduğunda, iki aşamalı modelin liman performansını tek aşamalı VZA'ya göre daha doğru bir şekilde değerlendirdiğini göstermektedir. Bu çalışmada önerilen iki aşamalı VZA modelinin hem literatüre hem de uygulamaya katkı yapması beklenmektedir.

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“…Traditional DEA models failed to measure the e orts of di erent processes and sub-processes within the organization [8]. Another issue that should be noted is that ignoring the operations of the component processes may end in misleading results; a number of examples have been presented to show that an overall system may be e cient even if all component processes are not [9]. More signi cantly, there are cases in which all the component processes of a DMU perform worse than those in another DMU, yet they have better system performance [10].…”

Section: Literature Reviewmentioning

confidence: 99%

Efficiency assessment of Iranian Handmade Carpet Company by network DEA

Zegordi

Omid

2017

Scientia Iranica

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Abstract. Di erent categories of Iranian handmade carpet are produced each year. Due to resource limitation, it is so important for managers to allocate more resources to the most e cient categories. Therefore, the main purpose of this illustration is to consider most e cient types of carpet in production and sales stages. To do so, di erent categories of Iranian handmade carpet are considered as DMUs. This study utilizes network DEA for constructing a model to analyze total and partial e ciencies of Iranian Handmade Carpet Company (IHCC), simultaneously. IHCC consists of three main departments that are working jointly to maximize productivity of the rm; therefore, the case of IHCC is a multi-stage system with shared intermediate variables, extra inputs to the second stage, and undesired outputs. The novelty of this paper is the methodology used for calculating the e ciency, which is based on multi-objective programming. Results of experimental data of IHCC are summarized in order to prepare some brilliant management strategies based on partial and total e ciency scores of di erent carpet categories. Because of the lack of familiar researches in the area of carpet industry e ciency measurement, this research will provide valuable information for decision makers.

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Efficiency decomposition in two-stage data envelopment analysis: An application to non-life insurance companies in Taiwan

Cited by 1,107 publications

References 15 publications

Potential “Savings” of Medicare: The Analysis of Medicare Advantage and Accountable Care Organizations

Potential “Savings” of Medicare: The Analysis of Medicare Advantage and Accountable Care Organizations

Proposal of a Two-Stage Model For Measuring The Port Efficiency And An Implication On Turkish Ports

Efficiency assessment of Iranian Handmade Carpet Company by network DEA

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