Managerial performance and cost efficiency of Japanese local public hospitals: A latent class stochastic frontier model

2011 ◽  
Vol 20 (S1) ◽  
pp. 19-34 ◽  
Author(s):  
Galina Besstremyannaya
Keyword(s):  
Cost Efficiency ◽  
Latent Class ◽  
Stochastic Frontier ◽  
Public Hospitals ◽  
Stochastic Frontier Model ◽  
Managerial Performance

Efficiency in Cooperative Banks and Savings Banks

2019 ◽  
pp. 49-69
Keyword(s):  
Gross Domestic Product ◽  
Empirical Evidence ◽  
Cost Efficiency ◽  
Stochastic Frontier ◽  
Gdp Growth ◽  
Stochastic Frontier Model ◽  
Empirical Results ◽  
Savings Banks ◽  
Cooperative Banks ◽  
The Cost

This chapter provides additional empirical evidence on the efficiency in cooperative banks and savings banks by applying a stochastic frontier model to estimate the cost efficiency from nine countries over the period 2005 to 2011. The empirical results suggested that a higher rate of the gross domestic product (GDP) growth implies an increase in the inefficiency level, while smaller cooperative and savings banks are more efficient in managing costs compared to larger banks.

scholarly journals Eficiencia técnica de pesquerías con heterogeneidad inobservada

2019 ◽  
Vol 37 (3) ◽  
pp. 101
Author(s):  
David Castilla Espino ◽  
Juan José García del Hoyo
Keyword(s):  
Technical Efficiency ◽  
Latent Class ◽  
Stochastic Frontier Analysis ◽  
Unobserved Heterogeneity ◽  
Stochastic Frontier ◽  
Production Model ◽  
Stochastic Frontier Model ◽  
Production Frontier ◽  
Frontier Analysis ◽  
Production Activity

Fisheries production is subject to a significant variability caused no only by the stochastic nature of fisheries due to uncontrolled environmental and biological conditions, but also by factors related to production activity. It is necessary to take into consideration all these factors to avoid biases on production model estimates. This paper aims to go through this variability in Stochastic Frontier Analysis to account for observed and unobserved heterogeneity together with technical efficiency and randomness. This paper exemplifies the application of a Latent Class Stochastic Frontier model to the anchovy fishery of Southeastern Black Sea to account for production frontier heterogeneity. Results show a mean level of technical efficiency of 55%, which is higher than those produced by the standard stochastic frontier model. Moreover, results allow identifying two latent classes in the fleet. They also provide sound scientific advice for de management of the fishery.

Cost efficiency and its determinants in the hotel industry

2016 ◽  
Vol 23 (5) ◽  
pp. 1056-1068 ◽  
Author(s):  
Antonio Arbelo ◽  
Pilar Pérez-Gómez ◽  
Marta Arbelo-Pérez
Keyword(s):  
Human Resources ◽  
Cost Efficiency ◽  
Labour Productivity ◽  
Stochastic Frontier ◽  
Hotel Industry ◽  
Stochastic Frontier Model ◽  
Hotel Management ◽  
Competitive Strategies ◽  
Strategic Resources ◽  
Time Invariant

This study employs a stochastic frontier model to estimate cost efficiency and its determinants in the hotel industry in Spain between 2008 and 2012. Measuring cost efficiency provides useful information on the performance of hotels to management, shareholders and, in general, to all stakeholders. Cost control is an issue managers are particularly concerned about, as it gives a competitive advantage that allows hotels to perform better. The results indicate that the inefficiency in average costs for the sample considered is 32.44% and is time invariant. The results also show that labour productivity, the accumulation of knowledge and location are factors that largely determine the differences in efficiency between hotels. These findings have important implications for public policymakers and hotel management, specifically, policies aimed at improving the skills of hotels’ human resources should be encouraged. Likewise, both location and the accumulation of knowledge are strategic resources that hotel management must include in their competitive strategies to increase efficiency.

scholarly journals Measurement of hospital efficiency, using a latent class stochastic frontier model

2011 ◽  
Vol 45 (1) ◽  
pp. 47-54 ◽  
Author(s):  
Carlos Pestana Barros ◽  
António Gomes de Menezes ◽  
José Cabral Vieira
Keyword(s):  
Latent Class ◽  
Stochastic Frontier ◽  
Hospital Efficiency ◽  
Stochastic Frontier Model

scholarly journals How efficient are German life sciences? Econometric evidence from a latent class stochastic output distance model

PLoS ONE ◽  
2021 ◽  
Vol 16 (3) ◽  
pp. e0247437
Author(s):  
Denitsa Angelova ◽  
Maya Göser ◽  
Stefan Wimmer ◽  
Johannes Sauer
Keyword(s):  
Technical Efficiency ◽  
Production Technology ◽  
Latent Class ◽  
Latent Class Model ◽  
Stochastic Frontier ◽  
Life Sciences ◽  
Latent Classes ◽  
Stochastic Frontier Model ◽  
Class Model ◽  
Decision Making Unit

This article investigates the technical efficiency in German higher education while accounting for possible heterogeneity in the production technology. We investigate whether a latent class model would identify the different sub-disciplines of life sciences in a sample of biology and agricultural units based on technological differences. We fit a latent class stochastic frontier model to estimate the parameters of an output distance function formulation of the production technology to investigate if a technological separation is meaningful along sub-disciplinary lines. We apply bootstrapping techniques for model validation. Our analysis relies on evaluating a unique dataset that matches information on higher educational institutions provided by the Federal Statistical Office of Germany with the bibliometric information extracted from the ISI Web of Science Database. The estimates indicate that neglecting to account for the possible existence of latent classes leads to a biased perception of efficiency. A classification into a research-focused and teaching-focused decision-making unit improves model fit compared to the pooled stochastic frontier model. Additionally, research-focused units have a higher median technical efficiency than teaching-focused units. As the research focus is more prevalent in the biology subsample an analysis not considering the potential existence of latent classes might misleadingly give the appearance of a higher mean efficiency of biology. In fact, we find no evidence of a difference in the mean technical efficiencies for German agricultural sciences and biology using the latent class model.

scholarly journals A Simultaneous Stochastic Frontier Model with Dependent Error Components and Dependent Composite Errors: An Application to Chinese Banking Industry

Mathematics ◽  
2020 ◽  
Vol 8 (2) ◽  
pp. 238 ◽  
Author(s):  
Jianxu Liu ◽  
Mengjiao Wang ◽  
Ji Ma ◽  
Sanzidur Rahman ◽  
Songsak Sriboonchitta
Keyword(s):  
Cost Efficiency ◽  
Banking Industry ◽  
Random Noise ◽  
Stochastic Frontier ◽  
Single Equation ◽  
Stochastic Frontier Model ◽  
Copula Functions ◽  
Chinese Banks ◽  
Chinese Banking Industry ◽  
High Level

The paper develops a simultaneous equations stochastic frontier model (SFM) with dependent random noise and inefficiency components of individual equations as well as allowing dependence across all equations of the model using copula functions. First, feasibility of our developed model was verified via two simulation studies. Then the model was applied to assess cost efficiency and market power of the banking industry of China using a panel data of 37 banks covering the period 2013–2018. Results confirmed that our simultaneous SFM with dependent random noise and inefficiency components outperformed its predecessor, which is a simultaneous SFM with dependent composite errors but with independent random noise and inefficiency components of individual SFMs as well as the conventional single-equation SFM. Apart from the statistical and computational superiority of our developed model, we also see that Chinese banks in general have a high level of cost efficiency and that competition in the banking industry of China mainly exists in state-owned banks and joint stock banks. Presence of economies of scales as well as diseconomies of scales were found in different banks. Also, the state-owned banks embraced most sophisticated technologies thereby allowing them to operate with the highest level of cost efficiency.

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