Efficiency Measurement Using a “True” Random Effects and Random Parameter Stochastic Frontier Models: An Application to Rural and Community Banks in Ghana

Danquah, Michael; Barimah, Alfred; Ohemeng, Williams

doi:10.4236/me.2013.412093

Cited by 9 publications

(5 citation statements)

References 16 publications

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“…Following Danquah et al, the starting point of the SFA model is to specify a relationship between a set of health facility inputs that produce an output [ 14 ]. This can be specified as …”

Section: Methodsmentioning

confidence: 99%

Improving primary health care facility performance in Ghana: efficiency analysis and fiscal space implications

Novignon

Nonvignon

2017

BMC Health Serv Res

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BackgroundHealth centers in Ghana play an important role in health care delivery especially in deprived communities. They usually serve as the first line of service and meet basic health care needs. Unfortunately, these facilities are faced with inadequate resources. While health policy makers seek to increase resources committed to primary healthcare, it is important to understand the nature of inefficiencies that exist in these facilities. Therefore, the objectives of this study are threefold; (i) estimate efficiency among primary health facilities (health centers), (ii) examine the potential fiscal space from improved efficiency and (iii) investigate the efficiency disparities in public and private facilities.MethodsData was from the 2015 Access Bottlenecks, Cost and Equity (ABCE) project conducted by the Institute for Health Metrics and Evaluation. The Stochastic Frontier Analysis (SFA) was used to estimate efficiency of health facilities. Efficiency scores were then used to compute potential savings from improved efficiency. Outpatient visits was used as output while number of personnel, hospital beds, expenditure on other capital items and administration were used as inputs. Disparities in efficiency between public and private facilities was estimated using the Nopo matching decomposition procedure.ResultsAverage efficiency score across all health centers included in the sample was estimated to be 0.51. Also, average efficiency was estimated to be about 0.65 and 0.50 for private and public facilities, respectively. Significant disparities in efficiency were identified across the various administrative regions. With regards to potential fiscal space, we found that, on average, facilities could save about GH₵11,450.70 (US$7633.80) if efficiency was improved. We also found that fiscal space from efficiency gains varies across rural/urban as well as private/public facilities, if best practices are followed. The matching decomposition showed an efficiency gap of 0.29 between private and public facilities.ConclusionThere is need for primary health facility managers to improve productivity via effective and efficient resource use. Efforts to improve efficiency should focus on training health workers and improving facility environment alongside effective monitoring and evaluation exercises.Electronic supplementary materialThe online version of this article (doi:10.1186/s12913-017-2347-4) contains supplementary material, which is available to authorized users.

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“…Following Danquah et al, the starting point of the SFA model is to specify a relationship between a set of health facility inputs that produce an output [ 14 ]. This can be specified as …”

Section: Methodsmentioning

confidence: 99%

Improving primary health care facility performance in Ghana: efficiency analysis and fiscal space implications

Novignon

Nonvignon

2017

BMC Health Serv Res

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“… 0 is the intercept (constant) and  j are response parameters to be estimated or elasticity corresponding to each input (j = 1 -6), including fertilizer and/or pesticide cost (GNF/acre), hired labor cost (GNF/acre), depreciation cost on farm tools (GNF/acre), seed quantity (kg/acre), active family labors per family size (%) and farm area under mangrove rice cultivation (acre). The estimation of stochastic production frontier functions assumes that the underlying production technology is the same for all firms or common to all productive units (Orea & Kumbhakar, 2004;Danquah et al, 2013). In line with this assumption, as some farmers applied either only fertilizer or pesticide and others both of these inputs, we combined these two inputs into one variable (fertilizer and/or pesticide).…”

Section: Empirical Modelmentioning

confidence: 99%

An Analysis of Technical Efficiency of Mangrove Rice Production in the Guinean Coastal Area

Balde¹,

Kobayashi²,

Nohmi³

et al. 2014

JAS

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In Guinea, the national rice consumption exceeds rice production, leading to concerns about food security. Thus, recent governmental measures have been directed towards promoting rice production, particularly in the coastal areas, the only zone where the mangrove rice production is practiced. Rice is the most important food crop and its production is the most organized food production system in the country. Therefore, it's of interest to examine the efficiency of mangrove rice production, in this study an attempt is made to determine the technical efficiency of mangrove rice production by using the stochastic frontier model. The study used primary data collected through a field survey. The analysis revealed that farm area and depreciation cost of farm tools contribute to significantly enhance the mangrove rice productivity. The inefficiency model revealed that age of household head, household size, farming experience, off-farm income and remittance significantly influenced the technical efficiency. The mean level of the technical efficiency was estimated at 23%, while the efficiency ranged from 0.0 % to 100%. Furthermore, the analysis indicated that the loss due to the inefficiency was significant with a value of 8,838,762 Guinean Francs per acre. Policy recommendations and strategies for improving the efficiency of mangrove rice production are advocated based on the findings.

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“…Lastly, with regards to the economic significance of our findings, we stress the point that estimating inefficiency has been of interest to academics and practitioners for a long time within economic literature (Danquah et al, 2013). Much of the existing theory surmises that higher efficiency is achieved when all goods and factors of production in the economy are distributed or allocated for the use of the most valuable, and wastage is eliminated or minimized (Arvidsson, 2011).…”

Section: Analysis and Implication Of Findingsmentioning

confidence: 73%

Operational efficiency of shipping companies

Venkadasalam

Mohamad

Sifat

2020

IJOEM

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PurposeThis paper is the first comprehensive investigation of the shipping industry's efficiency in five countries from the ASEAN region: Malaysia, Singapore, the Philippines, Thailand and Vietnam.Design/methodology/approachEmploying Data Envelopment Analysis and Stochastic Frontier Analysis, this paper compares efficiency dynamics of 45 international and offshore shipping providers engaged in fishing and ferrying.FindingsThe results indicate consistently diminishing efficiency from 2011 to 2017, a phenomenon that persists even in the traditionally efficient companies. Thereafter, this paper develops Altman Z-scores for the sampled companies and notice that despite rising inefficiency, most firms remain unencumbered by bankruptcy concerns, especially those with large capital buffers.Research limitations/implicationsIn general, this paper observes a negative relationship between bankruptcy risk and efficiency. Furthermore, the paper notices that reducing inputs does not help boost efficiency.Originality/valueIn terms of novel contributions, this paper is the first (to the best of knowledge) to set a Z-score for the ASEAN-based shipping companies.

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Efficiency Measurement Using a “True” Random Effects and Random Parameter Stochastic Frontier Models: An Application to Rural and Community Banks in Ghana

Cited by 9 publications

References 16 publications

Improving primary health care facility performance in Ghana: efficiency analysis and fiscal space implications

Improving primary health care facility performance in Ghana: efficiency analysis and fiscal space implications

An Analysis of Technical Efficiency of Mangrove Rice Production in the Guinean Coastal Area

Operational efficiency of shipping companies

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