Ming-Miin Yu

Measuring the efficiency and return to scale status of multi-mode bus transit - evidence from Taiwan's bus system

In this article not only the multi-activity DEA model is applied to determine the efficiency of individual services within different but highly homogeneous multi-mode transit firms, but the relationship between size and local returns to scale status of each transit service is also investigated. The empirical findings indicate that it does not necessarily imply that the transit firm will be as efficient as a single-activity model when the multi-activity model is estimated, and there are different optimal scale sizes for highway bus and urban bus service in the Taipei metropolitan area.

Performance measurement for incineration plants using multi-activity network data envelopment analysis: The case of Taiwan

This study proposes the use of multi-activity network data envelopment analysis to appraise how incineration plants in Taiwan perform. Sample data from 2006 is used to examine the trade-offs between efficiency enhancement and pollution abatement. The respective efficiencies of the waste treatment and electricity generation are also assessed in a unified framework. The empirical results indicate that it is more important to improve the efficiency of waste treatment activity than of electricity generation activity in order to enhance the overall performance of Taiwans incinerators. Since ownership, location and length of operations do not in general affect their performance, any improvement has to come from the careful monitoring of each process of the waste treatment operations. Furthermore, given that the policy in Taiwan has moved away from incineration to recycling, the problem of an over-supply of incinerators may become apparent in the near future. Our results indicate that the availability of capacity size may be an important factor when policy-makers consider whether to close down some existing incinerators.

Measuring the Cost Effectiveness of Multimode Bus Transit in the Presence of Accident Risks

Abstract This study employs the directional graph distance function and the multiactivity data envelopment analysis (DEA) approach, which incorporates both desirable and undesirable outputs, in order to provide a more complete representation of the multimode bus production technology from which environmentally and risk-sensitive cost effectiveness measures can be generated. We treat accident cost as the risky output in the sense that we wish to increase desirable outputs and decrease risky output and inputs. The approach is applied to the problem of measuring the cost effectiveness of 24 bus companies in Taiwan. An empirical illustration suggests that the overall cost effectiveness rankings turn out to be very sensitive to whether or not the graph multiactivity DEA approach is adopted. This implies that the conventional DEA cost effectiveness measure may be seriously misleading if it ignores the cost effectiveness of organizations that carry out various activities whilst sharing common resources.

Measuring air routes performance using a fractional network data envelopment analysis model

This paper aims to propose a unified framework of data envelopment analysis (DEA) model so as to facilitate legitimate comparisons of performance among the production and service processes as well as overall operations. The fractional measure network DEA (FNDEA) model is constructed by analytically stratifying the structure of an operational network according to the transport service characteristics of air routes. We compare the proposed model with separate multi-stage DEA evaluation results by using an actual data set from the domestic air routes of an airline in Taiwan. The results show that the FNDEA model is significantly different from the separate multi-stage DEA model in magnitude of performance scores. Managerial strategies for the improvement of performance for the airline are also suggested.

Measuring the performance of financial holding companies

Financial institutions have become larger and engage in a wider array of financial activities due to continuing consolidation. Since the financial holding companies face multiple production functions simultaneously, the traditional data envelopment analysis (DEA) approach is not suitable for investigating their efficiency. This study applies the multi-activity DEA model to explore the relative efficiency of 12 financial holding companies in Taiwan. The results show that the multi-activity DEA model is obviously more capable of identifying sources of inefficiency, thereby potentially yielding greater managerial insights into organisational improvements.

Total factor productivity growth and directions of technical change bias: evidence from 99 OECD and non-OECD countries

Based on data of 99 nations during 1991–2003, the Malmquist index and its composition of technical change and efficiency change are estimated. In particular, the hypothesis of neutral technology is released to divide technology into the magnitude of the shift in the world production frontier and input-biased technology, and to show that in order to gain more benefit or not to lose so much benefit from technology change, it is important for countries to coordinate their choice of input mix with the directions of technology bias if their technical changes are biased. The results indicate that both OECD and non-OECD countries tend to show capital-using/labor-saving, capital-using/energy-saving and energy-using/labor-saving technical change bias over the entire period. The production pattern of a majority of countries is shown to have been able to take advantage of their technological innovations.

Performance assessment of transport services with the ERM-NDEA model: evidence from a domestic airline in Taiwan

Abstract This paper estimates comprehensive operational performance measures for transport services. A network efficiency approach is used to analyze the production efficiency, service efficiency, and operational efficiency in a unified framework to reflect the transportation service characteristics of airline operations. We show how a modified version of the network data envelopment analysis model can be utilized for evaluating the performance of air route operations. This study considers 15 air routes operated by a domestic airline in Taiwan to highlight the value of the approach. The results of the analysis show the inputs and consumed outputs leading to production inefficiency and service inefficiency respectively as well as the magnitudes of excesses and shortfalls.

An Application of the Dynamic Network DEA Model: The Case of Banks in Taiwan

ABSTRACT In this study, we apply the dynamic network slack-based measure data envelopment analysis model (DNSBM) to measure the efficiency of Taiwanese banks during the period 2005–11. Using the network structure, we define intellectual capital creation capability as one of the production stages. In order to capture the dynamics of the transformation process, the nonperforming loans and loan loss reserves are defined as carryover items. This study offers sufficient information for managers to understand not only the overall performance of their banks but also the efficiency of each production stage and the dynamic changes of the overall and divisional efficiencies.

An integration of the multi-component DEA and GAR models to the measurement of hotel performance

The aim of this paper is to identify how well each hotel performs in each of its room and food and beverage divisions. To this end, this paper develops a multi-component data envelopment analysis/global assurance region (MDEA/GAR) model to fully gauge hotel performance where each hotel has its specific inputs and outputs for both divisions as well as shared inputs and common outputs between the two divisions. The application shows how the MDEA/GAR model can incorporate preferable hotels among the efficient ones with higher profit earning ratios when evaluating hotel performance. The results show that members of international chain-managed hotels perform significantly better than local chain-managed and independently managed hotels.

The capacity productivity change and the variable input productivity change: A new decomposition of the Malmquist productivity index

This paper provides a method for the decomposition of total factor productivity into partial measures of productivity. The proposed decomposition model measures the capacity productivity change and variable input productivity change. The latter can further be decomposed into partial factor technical efficiency change and partial factor technical change. This new decomposition isolates various sources of total factor productivity, and avoids providing a misleading indication of overall productivity.