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Showing 2 results for Allocative Efficiency

Mohammad Rahim Ramazanian, Akram Oveysi Omran, Keykhosrow Yakideh,
Volume 14, Issue 3 (9-2014)
Abstract

Banks play substantial role in the national economy and its growth and prosperity. In this regard, recent researches have focused on performance evaluation of banks using “data envelopment analysis” (DEA). However, most of these studies has paid less attention to the selection of input and output variables. Obviously, the change in the variables set makes the efficiency scores and assessments of the decision-making units very different. Hence, in this paper, a logistic regression model is used in order to select the input and output variables. Applying this method indicates that the main variables of model are main source of financing as "input variable" and the bank facilities, resource absorption rate and number of bills as "output variables". These are of the greatest impact on forecasting of units efficiency (inefficiency). Then, we dealt with this set of variables to determine technical, allocative, and overall efficiency of 15 branches of Sepah Bank in Tehran during 2011. The results show that only 27 percent of units are 100% efficient, 20% of the units are 100% inefficient, 20% of units are allocatively inefficient and 34% of them are technically inefficient.

Volume 26, Issue 5 (9-2024)
Abstract

A survey was conducted to assess the technical and allocative efficiency of tomato (Solanum lycopersicum L.) production under the plastic house in metropolitan city of Pokhara, Nepal. From the total tomato growers, 80 farmers were selected through multistage sampling. Stochastic frontier approach is applied to the obtained survey data and analyzed to study the technical and allocative efficiency of tomato production. This research is essential for enhancing tomato yields without incurring additional input expenses. Our results find the mean technical efficiency of 78.19%, which shows the great opportunity of improvement of tomato production in Pokhara. Technical efficiency is positively influenced by education level and training availability and negatively affected by farmers' ages. Subsidy has non-significant effect on technical efficiency in the study area. The allocative efficiency ratio of plastic house area, seed, and di-ammonium phosphate shows its underutilization with a score above 1. On the contrary, farmyard manure, urea and muriate of potash application are overutilized with a score of less than 1. The efficiency in tomato production can be improved by optimal allocation of resources, encouraging young farmers in farming, increasing access to education and training to farmers, and change in current subsidy mechanism. Through corrective measures, policies, and practices, an efficient frontier could be achieved by the tomato-growing farmers of the study area, which ultimately will maximize profit without necessarily increasing input level.

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