Parametric Versus Non-Parametric Efficiency Measures: A Consistency Conditions Analysis of the Finnish Electricity Distribution Industry

2010 ◽  
Author(s):  
Maria Kopsakangas-Savolainen
Keyword(s):  
Electricity Distribution ◽  
Consistency Conditions ◽  
Efficiency Measures ◽  
Non Parametric

Efficiency and ownership in electricity distribution: A non-parametric model of the Turkish experience

1996 ◽  
Vol 18 (1-2) ◽  
pp. 1-23 ◽  
Author(s):  
Necmiddin Bagdadioglu ◽  
Catherine M. Waddams Price ◽  
Thomas G. Weyman-Jones
Keyword(s):  
Parametric Model ◽  
Electricity Distribution ◽  
Non Parametric

scholarly journals Efficiency of electricity distribution companies

2019 ◽  
Vol 55 (2) ◽  
pp. 177-193 ◽  
Author(s):  
Diego Rodrigues Boente ◽  
Paulo Roberto B. Lustosa
Keyword(s):  
Structural Equation ◽  
Structural Model ◽  
Electrical Energy ◽  
Likelihood Method ◽  
Equation Modeling ◽  
Multivariate Techniques ◽  
Electricity Distribution ◽  
Energy Agency ◽  
Content Type ◽  
Efficiency Measures

Purpose After assessing papers on efficiency, most of the studies available are focused on the analysis of efficiency measures, without providing a deep discussion of the factors that determine efficiency. This study aims to evaluate the efficiency of Brazilian electricity distribution companies based on a structural model that enables the identification of a network of relationships among representative variables that contribute to efficiency. Design/methodology/approach Structural equation modeling was applied in a sample of 62 electricity distribution companies operating in Brazil, forming a balanced panel from 2010 to 2014. Then, the authors verified the model compliance according to the empirical evidence of the entities analyzed. This verification included a survey of the variables, which was supported by theoretical references related to the phenomenon studied. The data collected were statistically treated, and benchmarking models and multivariate techniques were used. Once the adjustments were made, the re-specified model was estimated using the maximum likelihood method. Findings The empirical model reached good adjustment rates. The analysis concluded that the constructs information system, structural system, management system and sociocultural system affect efficiency. Originality/value This study adds to several other papers, and this is one of its main contributions. Relationships among the constructs have been systematized according to literature in the form of a structural model, which will enable future researchers to have a reference frame of relevant studies and a research foundation in this area of knowledge. A third contribution is the model tested in a sample of Brazilian electricity distribution companies, whose results can be compared to other utility sectors (e.g. telecommunications) or to other countries' electrical sectors, thus providing an empirical basis for the proposed hypotheses. Finally, this study also offers a contribution to the Brazilian Electrical Energy Agency (Aneel, in Portuguese), a regulatory agency, providing mechanisms to guide tariff adjustments, seeking a balance between costs and the need for investments allied to tariff affordability.

scholarly journals Methods of Measuring the Efficiency of Commercial Banks: an Example of Polish Banks

Ekonomika ◽  
2008 ◽  
Vol 84 ◽  
Author(s):  
Grazyna Wozniewska
Keyword(s):  
Commercial Banks ◽  
Balance Sheet ◽  
Efficiency Analysis ◽  
Data Envelopment ◽  
Financial Indicators ◽  
Analysis Method ◽  
Bank Efficiency ◽  
Efficiency Measures ◽  
Dea Method ◽  
Non Parametric

Efficiency analysis is essential for the evaluation of banks’ performance. To estimate banks’ efficiency, we can apply different methods. Analysis of financial indicators is the most popular efficiency analysis method in banks, but the number of financial indicators can be really big and make the interpretation of the results more difficult. Another way to estimate efficiency measures is the nonparametric frontier method - Data Envelopment Analysis (DEA). This method has become increasingly popular in measuring bank efficiency in the countries with developed banking systems.The main aim of this article is to present the results of efficiency analysis, computed by means of both methods, i. e. the classical index of balance sheet characteristics and the non-parametric DEA method.The analysis was carried out in the biggest banks operating in Poland in 2000-2007. The empirical results show that the efficiency measures give a similar although not identical picture of Polish commercial banks’ performance. These results (yielded by both methods) are complementary to each other and suggest that the non-parametric DEA method is really valuable and worth applying in bank practice.The work presents also the reasons that would explain the achieved results. It also compares both methods, their potentials and limitations in applying them to banking.

scholarly journals Efficiency analysis of German electricity distribution utilities – non-parametric and parametric tests

2006 ◽  
Vol 38 (21) ◽  
pp. 2553-2566 ◽  
Author(s):  
Christian von Hirschhausen ◽  
Astrid Cullmann ◽  
Andreas Kappeler
Keyword(s):  
Efficiency Analysis ◽  
Electricity Distribution ◽  
Non Parametric

scholarly journals Measuring Energy Efficiency in Kerala: Data Envelopment Analysis

2019 ◽  
Vol 6 (4) ◽  
pp. 16-28
Author(s):  
Vijayamohanan Pillai N ◽  
AM Narayanan
Keyword(s):  
Data Envelopment Analysis ◽  
Energy Use ◽  
Returns To Scale ◽  
Data Envelopment ◽  
Productivity Analysis ◽  
Parametric Approach ◽  
Factor Productivity ◽  
Energy Productivity ◽  
Efficiency Measures ◽  
Non Parametric

Traditionally, there are two basically reciprocal energy efficiency Indicators: one, in terms of energy intensity, that is, energy use per unit of activity output, and the other, in terms of energy productivity, that is, activity output per unit of energy use. The enquiry that has proceeded from the problems associated with this method of a single energy input factor in terms of productivity has led to multi-factor productivity analysis. We have here two approaches: parametric and non-parametric. Parametric approach famously includes two methods: the erstwhile popular total factor energy productivity analysis and the currently fanciful stochastic frontier production function analysis; The non-parametric approach is popularly represented by data envelopment analysis. The present paper is an attempt to measure efficiency in electrical energy consumption in Kerala, India. We apply the non-parametric mathematical programming method of data envelopment analysis of the multi-factor productivity approach, and estimate the efficiency measures under the two scale assumptions of constant returns to scale (CRS) and variable returns to scale (VRS); the latter includes both increasing (IRS) and decreasing returns to scale (DRS). Scale efficiency measures are also given to find out whether a firm is operating at its optimal size or not, implying degrees of capacity utilization.

Sign in / Sign up

Export Citation Format

Share Document