Narrow Results

The under-provision of efforts in built heritage conservation was due to market failure to allocate cost and benefit efficiently. Conservation agency could facilitate conservation effort, which was considered not beneficial from the point of view of the private owners of the heritage houses, by providing conservation subsidy. In this paper, we conducted three different experimental auctions, namely, (i) discriminative price auction, (ii) uniform price auction, and (iii) random nth price auction to investigate bidding behaviors and efficiency levels in allocating conservation subsidies. Both uniform and random nth price auctions were able to encourage cost revealing bids. Random nth price auction was able to engage the off-margin bidders. However, discriminative price auction was more cost efficient compared to the other two auctions.

Recently Leleu [A linear programming framework for free disposal hull (FDH) technologies and cost functions: Primal and dual models] presented a linear model for assessing the FDH-cost function with various returns to scale assumptions. He stated that economic inefficiency can be computed as the ratio of the observed cost to the minimum cost and, as usual, the allocative inefficiency is computed as the ratio between the economic and the technical inefficiencies. In this paper, we propose a modified model with various returns to scale assumptions that has fewer constraints and variables than Leleu's model and obtains the FDH-cost efficiency directly. Reducing nm constraints and nm variables, where n is the number of DMUs and m is the number of inputs, leads to the computational advantage of our model over that of Leleu.

The “Dynamic-network” version of cost efficiency measurement in Data Envelopment Analysis (DEA) is proposed in this paper. The classical DEA models ignore operations of individual processes within a system; moreover, they compute efficiency at the same time. Therefore, we suggest a relational model to estimate cost efficiency in static network structures. Also, we incorporate the dynamic effect in network structures. The proposed models here evaluate the overall efficiency over the whole periods and indicate it as a weighted average of period efficiencies. The main advantage revealed in this study is recognition of: which divisions at what periods caused the inefficiency of the system, the internal activities of the system over time, considered; moreover, the results obtained here is applicable in, improving the performance of the system. A case study of Iranian banking industry is used to show the applicability of the approach.

Considering the real dilemma of deteriorating items, we explore how to find a balance between the conflicting achievements of enhancing flexibility and reducing costs. We propose a general dynamic model to penetrate customer orders by decoupling point with objective to minimize the cost. The closed forms of optimal solutions are obtained for companies to deal with the integrated problem of customer order decoupling point (CODP) decision and production–inventory plan simultaneously. Applications and numerical experiments are performed to illustrate practical insights for managers. The results show that the truth of zero-inventory policy is to avoid unnecessary inventory instead of absolutely no inventory. The CODP will shift forward with the increasing of customer demand rate and shift backward with the increasing of deterioration rate under the production smoothing policy. However, although it encounters the same changes of demand, the CODP moves with a smaller extent in high deterioration rate than in low. In addition, we find that during the growth phase of product life cycle, the increase of time-sensitive degree of demand is coupled with forward shifting of CODP; while during the decline phase, it is coupled with CODP backward shifting.

This study investigates the effects of Basel II and Basel III capital adequacy rules and the regulatory framework adopted by Chinese banking regulators on the efficiency of the banking sector in China during the post-Basel II era (2007–2017) and compares the results with that of the pre-Basel II era (1996–2006). The study finds that both cost and profit efficiency of the banking industry have improved significantly from the pre-Basel II era (1996–2006) to the post-Basel II era (2007–2017). Subperiod analyses show that the risk-based capital ratio (Tier 1 capital ratio) is significantly positively associated with profit efficiency during both pre- and post-Basel II eras. Overall, the “Big Four” national banks and regional commercial banks signal higher profit efficiency during the post-Basel II era.

In many real-world situations, the cost and revenue performance of heterogeneous decision making units (DMUs) should be assessed while uncertain data are presented. The exiting data envelopment analysis (DEA) models have dealt with the economic efficiency of nonhomogenous DMUs without considering random performance measures. In this paper, a stochastic DEA approach is, therefore, proposed to estimate meta-frontier stochastic cost and revenue efficiencies under the convex technology. To illustrate, group cost and revenue efficiencies and meta cost and revenue efficiency scores under convex metatechnology are measured using cost-based and revenue-based chance-constrained DEA models. Furthermore, the deterministic frameworks of approaches are provided. Cost and revenue gap ratios and sources of meta-frontier stochastic cost and revenue inefficiencies are also handled. An empirical study of the banking industry is used to show the applicability and reliability of the proposed technique.

As recognized, flaking-type failure is one of the serious problems for railroad tracks and bearings. In essence, flaking-type failure is closely related to the growth of the shear-mode (Mode-II and Mode-III) fatigue crack. In our research group, it is demonstrated that a shear-mode fatigue crack can be reproduced for cylindrical specimens by applying the cyclic torsion in the presence of the static axial compressive stress. However, a biaxial servo-hydraulic fatigue testing machine is quite expensive to purchase and costly to maintain. The low testing speed (about 10Hz) of the testing machine further aggravates the situation. As a result, study on shear-mode fatigue crack growth is still in the nascent stage. To overcome the difficulties mentioned above, in this research activity, we developed a high-performance and cost-effective testing machine to reproduce the shear-mode fatigue crack growth by improving the available resonance-type torsion fatigue testing machine. The primary advantage of using the resonance-type torsion fatigue testing machine is cost-efficiency. In addition, the testing speed effectively can be improved, in comparison with that of a biaxial servo-hydraulic fatigue testing machine. By utilizing the newly-designed testing machine, we have demonstrated that we can successfully reproduce the shear-mode fatigue crack.

The Government of Nigeria holds 60% in upstream oil and gas JVCs which operate alongside non-JVCs. Using a multivariate regression analysis based on a monthly panel dataset (1999–2007), we examined cost efficiency of both JVCs and non-JVCs with the aim of determining whether or not Government ownership in the JVCs has any significant and systematic effect on their cost efficiency. Findings of the study indicate that non-JVCs spend twice as much as the JVCs to produce a barrel of oil. Findings are in line with the assumption that agent performs differently based on his ownership right on asset and the level of control of principal over him; as such right/control influences agent's actions ex-ante. Therefore, findings of the study indicate that Government ownership in the upstream oil and gas companies mitigates the potentials for adverse selection and moral hazard issues that characterized the upstream oil and gas sector. Overall, findings indicate that Government ownership has a significant impact on cost efficiency of the upstream oil and gas companies operating in Nigeria. Hence, continued Government participation in upstream operations in Nigeria is considered to be the most important policy implication of our findings.

This paper assesses the environmental and economic efficiency of thermal plants operating on fossil fuels in Pakistan using methods based on data envelopment analysis. Using the material balance principle, we find that cost- and carbon-efficient points can only be obtained simultaneously by switching to gas. However, under an assumption of variable returns to scale, these points can still be obtained without this conversion through the application of best practices. Furthermore, about 26% of costs and about 34% of carbon emissions can be reduced without a switch to gas, but instead by using technically efficient inputs; this approach can also lead to a significant reduction in electricity prices and considerable environmental benefits. Power plants operating on residual fuel oil are significantly more technically efficient than plants operating on gas. Nonetheless, both types of plants have an equal share in forming the metafrontier as exhibited by the meta-technology ratio. There is a definite need to make plants more efficient by using the best possible combination of inputs and overhauling. Bootstrap results also suggest that further improvement in efficiency is possible.

The purpose of this chapter is to identify the attributes affecting the cost, revenue, and profit efficiency of life insurance companies in India from 2013–2014 to 2018–2019. A two-phase analysis is applied in the study. In the first phase, the cost, revenue, and profit efficiency scores of all the life insurance companies are calculated using the technique of data envelopment analysis. In the second phase, a panel tobit regression model is run to estimate the antecedents of efficiency. The results of the study emphasize that capital adequacy, asset quality, reinsurance and actuarial issues, management soundness, and liquidity have a positive relationship with cost, revenue, and profit efficiency. However, “earning and profitability” has a negative impact on all the efficiency scores, depicting that Indian life insurance companies are not getting much return from their investments, which is their major source of revenue. Low revenues do not seem to be sufficient to cover the cost of insurance and, consequently, generate low profits. In order to improve efficiency, insurers should focus on balancing the input–output mix, taking into consideration their prices. Also, modern virtual platforms should be adopted, which can lead to cost savings and higher profitability.