scholarly journals Introducing Weights Restrictions in Data Envelopment Analysis Models for Mutual Funds

Mathematics ◽  
2018 ◽  
Vol 6 (9) ◽  
pp. 164 ◽  
Author(s):  
Antonella Basso ◽  
Stefania Funari
Keyword(s):  
Performance Evaluation ◽  
Data Envelopment Analysis ◽  
Mutual Funds ◽  
Matrix Representation ◽  
Efficient Frontier ◽  
Data Envelopment ◽  
Weight Restrictions ◽  
Dea Efficiency ◽  
Weights Restrictions ◽  
Analysis Models

Data envelopment analysis has been applied in a number of papers to measure the performance of mutual funds, besides a great many applications on the more diverse fields of performance evaluation. The data envelopment analysis models proposed in the mutual funds literature do not generally set restrictions on the weights assigned to the input and output variables. In this paper, we study the effects of the introduction of different weight restrictions on the results of the performance evaluation of mutual funds. In addition, we provide a unified matrix representation for three widely used approaches on weight restrictions: virtual weight restrictions with constraints on all decision-making units (DMUs) (on all funds); virtual weight restrictions with constraints only on the target unit; assurance regions. Using the unified matrix representation of the weights constraints, we formulate the data envelopment analysis (DEA ) efficiency model and express the efficient frontier in a unified way for the different weight restrictions considered. We investigate the effects of the different weight restrictions on the performance evaluation by means of an empirical application on a set of European mutual funds. Moreover, we study the behaviour of the fund performance scores as the restrictions on the weights become increasingly strict.

Improving efficiency evaluation in tourism analysis: weight restrictions models and value judgments

2020 ◽  
Author(s):  
Pilar Alberca ◽  
Jorge Santos
Keyword(s):  
Performance Evaluation ◽  
Data Envelopment Analysis ◽  
Practical Implication ◽  
Operational Efficiency ◽  
Total Weight ◽  
Data Envelopment ◽  
Efficiency Evaluation ◽  
Weight Restrictions ◽  
Value Judgments ◽  
And Performance

The aim of this study is to analyze the operational efficiency of tourism firms usingweights-restricted Data Envelopment Analysis (DEA) in a mathematical optimizationframework. The use of weight restrictions has been applied in several studies onefficiency and performance evaluation, in order to account for the decision maker’sinformation. In this study, a non-standard approach to operational efficiency evaluationis applied, in an attempt to overcome certain limitations in tourism analysis; namely, thefact that the analyst may choose to consider only a few rather than all of the inputvariables. One of the main findings of this study is that total weight flexibility can leadto non-rational weights due to the fact that certain inputs are effectively ignored.Furthermore, total weight flexibility can result in too many units being assessed as efficient, reducing the discriminatory power of the model. This problem can be solvedby applying weight restrictions. A first practical implication is that the weighted DEAmodel yields better efficiency estimations. Moreover, since a high number of efficientunits could be considered an unrealistic result, the findings of this study demonstratethat the choice of weighted or restricted DEA model produces more accurate efficiencyresults.

scholarly journals Performance Evaluation of Fishery Enterprises Using Data Envelopment Analysis—A Malmquist Model

Mathematics ◽  
2021 ◽  
Vol 9 (5) ◽  
pp. 469
Author(s):  
Chia-Nan Wang ◽  
Thi-Ly Nguyen ◽  
Thanh-Tuan Dang ◽  
Thi-Hong Bui
Keyword(s):  
Performance Evaluation ◽  
Data Envelopment Analysis ◽  
Technological Progress ◽  
Data Envelopment ◽  
Domestic Economy ◽  
Factor Productivity ◽  
Sales Revenue ◽  
Business Efficiency ◽  
Using Data ◽  
Decision Making Units

In Vietnam, fishing is a crucial source of nutrition and employment, which not only affects the development of the domestic economy but is also closely related to exports, heavily influencing the economy and foreign exchange. However, the Vietnamese fishery sector has been facing many challenges in innovating production technology, improving product quality, and expanding markets. Hence, the fishery enterprises need to find solutions to increase labor productivity and enhance competitiveness while minimizing difficulties. This study implemented a performance evaluation from 2015 to 2018 of 17 fishery businesses, in decision making units (DMUs), in Vietnam by applying data envelopment analysis, namely the Malmquist model. The objective of the paper is to provide a general overview of the fishery sector in Vietnam through technical efficiency, technological progress, and the total factor productivity in the four-year period. The variables used in the model include total assets, equity, total liabilities, cost of sales, revenue, and profit. The results of the paper show that Investment Commerce Fisheries Corporation (DMU10) and Hoang Long Group (DMU8) exhibited the best performances. This paper offers a valuable reference to improve the business efficiency of Vietnamese fishery enterprises and could be a useful reference for related industries.

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