The Cost Efficiency of the Brazilian Electricity  Distribution Utilities: A Comparison of Bayesian  SFA and DEA Models

Souza, Marcus Vinicius Pereira de; Diallo, Madiagne; Souza, Reinaldo Castro; Baidya, Tara Keshar Nanda

doi:10.1155/2010/593059

Cited by 26 publications

(5 citation statements)

References 29 publications

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“…Wang et al (2016) [15] reported that various DEA models and DEA-based modeling approaches such as CCR (Charnes-Cooper-Rodes); Undesirable Outputs, Malmquist, and Window have been recently applied in both private and public sectors across countries. For example, the CCR-DEA is applied to study the cost-effectiveness of electricity distribution facilities in Brazil [16] or performance-efficiency among Vietnamese steel manufacturers [17]. The studies applied to measure sustainability in supply chains with DEA techniques are very remarkable [18].…”

Section: Data Envelopment Analysis (Dea) Methodsmentioning

confidence: 99%

Environmental Efficiency Evaluation in the Top Asian Economies: An Application of DEA

2021

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Sustainable development has become a global catchphrase in the recent development age. This leads to the growth of various methodologies in evaluating environmental efficiency, such as the Data Envelopment Analysis (DEA) method. The purpose of this study is to propose an extended DEA model, i.e., the undesirable output model, in measuring the relative eco-efficiency scores across nations. The study collected the data of inputs, namely bad outputs and good outputs of the top 20 Asian economies in the period of 2005–2019, and then estimated the environmental efficiency of each country and classified them. The results have shown that there are four nations having higher average environmental efficiency than others. Japan is a good example of sustainable development that simultaneously balances economic development and environmental protection. The study has also discussed possible solutions for improvement to the group of nations with low environmental efficiency. Contributing to applying a novelty extended DEA model, this work recommends a more precise model, taking the weight of outputs into account for further studies.

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Section: Data Envelopment Analysis (Dea) Methodsmentioning

confidence: 99%

Environmental Efficiency Evaluation in the Top Asian Economies: An Application of DEA

2021

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“…According to Berg and Lin (2008), Castiglione et al (2018), another pitfall related to the application of the DEA method relies on the fact that this methodology does not consider random shocks that cannot be controlled by the producer, something that can be instead done through the application of the SFA. Further, the SFA has been preferred to non‐parametric approaches as the latter have been proven to perform poorly in the presence of outliers (Koop et al, 1999; Simar, 2003; Simar & Zelenyuk, 2011) while according to Pereira de Souza et al (2010) the SFA methodology is relatively more robust to the presence of outliers, given the assumptions about the distribution of its error term.…”

Section: Empirical Designmentioning

confidence: 99%

Basel accords and banking inefficiency: Evidence from the Italian local market

2022

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Using data for Italy from 1994 to 2015, we appraise the nexus between Basel II and III accords and both the cost and the profit inefficiency of profit‐oriented and mutual cooperative banks. Our analysis further deals with the effects of the regulation in different market structures. To assess the efficiency of the two types of banks under scrutiny, a stochastic frontier approach has been proposed. The evidence reported in this paper indicates that the regulatory framework of the Basel accords had heterogeneous effects on the efficiency of Italian banking institutions. Specifically, Basel II is associated with a contraction in the profit inefficiency and an increase in the cost inefficiency for mutual cooperative banks. On the other hand, Basel III worsened the profit inefficiency, though it is found to reduce the profit inefficiency of mutual cooperative banks, with no significant impact on cost inefficiency. Furthermore, once we control for the degree of market competition, the effects of the regulation are shown to be statistically insignificant. The advent of the 2008 recession and the application of the revenue inefficiency do not alter the main findings. There is also some evidence of spatial effects of the Basel II regulation at the LMA level.

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“…Researchers have dedicated their consideration regarding contrasting the parametric and non-parametric frontier methodologies utilizing information from non-financial firms. Pereira de Souza et al (2010) assess the efficiency of 60 Brazilian power and appropriation utilities by utilizing both DEA and Bayesian SFA models. They demonstrated that efficiency scores obtained from the SFA model are higher than the DEA; however, the (Pearson & Spearman) relationships between the DEA and SFA models are moderately high.…”

Section: Literature Reviewmentioning

confidence: 99%

Determinants of Cost Efficiency of Islamic Banks of Pakistan

Sadiq

Arshed

Ahmad

2017

JMIFR

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Efficient utilization of the resources as trust of the depositors is the first and foremost responsibility of the Islamic bank, as directed in . Efficiency in managing the cost of the bank is only aspect that bank can control which can lead to increase in income of bank and depositors. There is a vast literature on theoretical models of business cost minimization but in reality the situation is not promising. This paper aims to measure and compare the real cost efficiency of full-fledged Islamic banks operating in Pakistan between the years of 2003 to 2015, using the Panel Stochastic Frontier Approach (SFA). The results revealed that surprisingly the Islamic banks in Pakistan are only 36 percent cost efficient, which can be contributed to the challenges faced because of parallel Islamic & conventional banking system and the nature of support from the regulatory and economic system. While determining the factors for efficiency for banking, fixed effect estimates revealed that operating efficiency, asset utilization has a positive effect while profit margin has a negative effect on cost efficiency. This study concludes that Islamic banks are facing issues of excess liquidity, inadequate support from regulatory authorities and competition from the conventional banking system which are causing inefficiency in cost management.

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The Cost Efficiency of the Brazilian Electricity Distribution Utilities: A Comparison of Bayesian SFA and DEA Models

Cited by 26 publications

References 29 publications

Environmental Efficiency Evaluation in the Top Asian Economies: An Application of DEA

Environmental Efficiency Evaluation in the Top Asian Economies: An Application of DEA

Basel accords and banking inefficiency: Evidence from the Italian local market

Determinants of Cost Efficiency of Islamic Banks of Pakistan

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