NDLI: The Impact of Non-Discretionary Factors on DEA and SFA Technical Efficiency Differences

Content Provider	Springer Nature Link
Author	Kontodimopoulos, Nick Papathanasiou, Nikolaos D. Flokou, Angeliki Tountas, Yannis Niakas, Dimitris
Copyright Year	2010
Abstract	The purpose of this study was to examine if factors of the external operating environment can explain differences in technical efficiency derived from Data Envelopment Analysis (DEA) and Stochastic Frontier Analysis (SFA). In a sample of 124 dialysis facilities, technical efficiency was compared according to ownership, region, years in operation and size. With second-stage Tobit regression, DEA and SFA efficiency was regressed against these environmental factors to determine their potential for predicting technical efficiency, as well as the efficiency differences between the two frontier methods. DEA expectedly generated lower mean efficiency scores than SFA (68.2% vs. 79.4%, P < 0.001), due to the “random effects” term computed by the latter, in addition to “true” inefficiency. This finding was consistent for the subgroups formed on the basis of the environmental factors. Half the variation in the DEA-SFA efficiency differences was explained by environmental factors. This suggests that in addition to market instabilities, luck, and other related phenomena, decision-makers in their effort to determine optimal resource allocation, should point their attention to the potentially useful insight provided by environmental factors.
Starting Page	981
Ending Page	989
Page Count	9
File Format	PDF
ISSN	01485598
Journal	Journal of Medical Systems
Volume Number	35
Issue Number	5
e-ISSN	1573689X
Language	English
Publisher	Springer US
Publisher Date	2010-05-07
Publisher Place	Boston
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Data envelopment analysis Stochastic frontier analysis Technical efficiency Operating environment Statistics for Life Sciences, Medicine, Health Sciences Health Informatics
Content Type	Text
Resource Type	Article
Subject	Health Information Management Information Systems Health Informatics

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1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
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