• Title/Summary/Keyword: Efficient frontier

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Measuring Returns to Scale of the R&D Activity Using Efficient Production Frontier (효율적 생산 프론티어를 이용한 연구개발활동의 규모의 보수성 측정)

  • Go Min Su;Lee Deok Ju
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 2003.05a
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    • pp.683-690
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    • 2003
  • This purpose of this research is an attempt to measure and comparatively analyze the efficiencies and RTS(Returns to Scale) using panel data of OECD countries including Korea. In order to achieve this purpose, at first this study used efficient production frontier estimation combined with DEA for obtaining parameter estimates of a efficient production frontier. secondly using estimated results, measured R&D productivity and RTS(Returns to Scale) on all of the OECD countries. thirdly using time-series data related to R&D activity of korea, measured R&D productivity and RTS(Returns to Scale). Finally based on the results of R&D productivity and RTS(Returns to Scale) using efficient production frontier, some policy implications for enhancing the R&D competitiveness and the technological capabilities are discussed.

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Searching an Efficient frontier in the DEA Model based on the Reference Point Method (참조점 방법을 이용한 DEA모형의 프론티어 탐구)

  • 오동일
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.1 no.1
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    • pp.83-90
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    • 2000
  • DEA is a newly developed analyzing tool to measure efficiency evaluation of decision making units (DMU). It compares DMU by radial Projection on the efficient frontier. The purpose of this study is to show reference point approach used for searching solution in multiple objective linear Programming can be usefully used to determine flexible efficient frontier of each DMU In reference point approach, the minimization of ASF Produces an efficient points in frontier and enhances the usefulness of DEA by Providing flexibility in DEA and optimally allocating resources to DMU. Various DEA models can be supported by reference point method by changing the projection direction in order to choose the targets units, standards costs and management benching-marking.

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Local Map-based Exploration Strategy for Mobile Robots (지역 지도 기반의 이동 로봇 탐사 기법)

  • Ryu, Hyejeong;Chung, Wan Kyun
    • The Journal of Korea Robotics Society
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    • v.8 no.4
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    • pp.256-265
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    • 2013
  • A local map-based exploration algorithm for mobile robots is presented. Segmented frontiers and their relative transformations constitute a tree structure. By the proposed efficient frontier segmentation and a local map management method, a robot can reduce the unknown area and update the local grid map which is assigned to each frontier node. Although this local map-based exploration method uses only local maps and their adjacent node information, mapping completion and efficiency can be greatly improved by merging and updating the frontier nodes. Also, we suggest appropriate graph search exploration methods for corridor and hall environments. The simulation demonstrates that the entire environment can be represented by well-distributed frontier nodes.

A Study on the Efficiency Analysis of IT Service Companies Using Meta Frontier and the Determinants of Efficiency Using Tobit Model (Meta Frontier를 이용한 국내 IT서비스기업의 효율성 분석 및 Tobit 모형을 이용한 효율성 결정요인 분석에 대한 연구)

  • Shin, Minsoo;Park, Jiyong
    • Journal of Information Technology Services
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    • v.16 no.4
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    • pp.15-31
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    • 2017
  • This study analyzes 45 Korea IT service companies from 2012 to 2016 using DEA analysis. Large enterprises, medium enterprises and small and medium enterprises (SMEs). CCR model and BCC model were used for efficiency analysis. Among the various analytical objects, the decision objects which yield the maximum output with minimum input are compared with other analysis objects. The relative inefficiency was measured through this, and Technical Efficiency (TE), Pure Technology Efficiency (PTE), Scale Efficiency (SE), scale profit, reference frequency were analyzed. Also, we analyzed the Technology Gap Ratio (TGR), which is the distance between production function and Meta-Frontier for each firm, using Meta-Frontier analysis. Finally, the Tobit model is used to analyze the sources of efficiency and inefficiency. The inputs are assets, capital, and employees, and the output factor is sales. The analysis shows that large firms are achieving technological achievements more efficiently than small and medium enterprises. As a result, medium-sized enterprises and SMEs can improve efficiency overall through efficient operation of workforce and appropriate combination of inputs such as assets and capital. Also, as a result of the influence factor analysis, it was found that the ratio of the managed asset ratio and the management cost ratio were significant factors influencing the efficiency of the IT service companies. This study suggests the efficiency analysis using DEA for many Korea IT service companies. Inefficient parts of each company are classified according to size and technology. Also, we identify the most efficient companies and analyze the causes of those companies whose profits are lower than their size.

Utilizing Large Language Models(LLM) for Efficient Online Price Index Development and Statistical Data Processing (대규모 언어모델 활용을 통한 통계자료 처리 및 온라인 가격지표 개발 방법론 연구)

  • Kyo-Joong Oh;Ho-Jin Choi;Hyeongak Ahn;Ilgu Kim;Wonseok Cha
    • Annual Conference on Human and Language Technology
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    • 2023.10a
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    • pp.101-104
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    • 2023
  • 본 연구는 현대 사회에서 빅데이터의 중요성이 강조되는 가운데, 온라인 시장의 확장과 소비자들의 다양한 소비 행태 변화를 반영한 가격지표 개발을 목표로 한다. 통계청의 기존 통계조사 방법론에 대한 한계를 극복하고, 온라인 쇼핑몰 데이터에서 필요한 정보를 추출하고 가공하기 위해 대규모 언어 모델(LLM)을 활용한 인공지능 기술을 적용해보고자 한다. 초기 연구 결과로 공개 Polyglot을 활용하여 비정형 자료 처리와 품목분류에 응용해 보았으며, 제한된 학습 데이터를 사용하여도 높은 정확도의 처리 결과를 얻을 수 있었으며, 현재는 적용 품목을 확장하여 더욱 다양한 품목에 방법론을 적용하는 연구를 진행 중이다.

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Measuring the Performance of Technology Transfer Activities of the Public Research Institutes in Korea (국내 공공 연구기관들의 기술이전 효율성 분석)

  • Ok, Joo-Young;Kim, Byung-Keun
    • Journal of Technology Innovation
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    • v.17 no.2
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    • pp.131-158
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    • 2009
  • We examine the effects of environmental or organizational factors on the performance of TLOs(technology transfer offices) in the PRIs(Public research institutes) using SFA(Stochastic Frontier Analysis), a technique for estimating the efficiency of DMUs(decision making units). In SFA, independent variables are assumed to determine the efficient production technique(production frontier) or affect the efficiency of DMUs. Previous researchs show that input variables such as number of personnel, R&D expenditure affect the production frontier while environmental or organizational variables affect the efficiency. We tried to estimate various types of models to find out whether environmental or organizational variables affect output variables differently from the previous research. Main empirical findings are as follows. First, R&D expenditure tends to increase all output variables considered. Second, environmental factors such as type of institutions and location of institutions affect the level of outputs. Third, organizational factors such as reward system for technology transfer also appear to affect the output variables. Fourth, environmental or organizational variables affect the production frontier directly rather than affect the efficiency of DMUs. Lastly, the efficiency of each DMU appear to be 1 or near to 1. Since almost all DMUs are equally efficient, it may not be effective to evaluate technology transfer activities of PRIs by efficiency criteria. We believe that this research should be complemented by additional data. More general types of production function need to be considered, and new techniques with concepts like output distance functions need to be developed to analyse multiple outputs simultaneously.

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Performance Evaluation of SME Banking in Bangladesh using Stochastic Frontier Analysis

  • Hossain, M.K.;Hossain, M.A.;Baten, M.A.
    • Asia-Pacific Journal of Business
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    • v.7 no.1
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    • pp.31-42
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    • 2016
  • Small and Medium Enterprises (SMEs) are suitable to provide employment with lower investment in densely populated countries like Bangladesh. A stochastic frontier model is used to evaluate performance of SME Banking of the commercial banks in Bangladesh. Input (Total Deposit, Cost of Fund and Salary Expenditure) and output (Finance to SME) data are collected on 45 banks which are dealt with SME for 13 quarters from $1^{st}$quarter of 2010 to $2^{nd}$quarter of 2013. Average performance of the SME banking is 0.716 in Bangladesh. That is, banks have opportunity to increase 30% performance in SME banking from the same inputs. Bangladesh Development Bank has lowest performance (0.540) while Eastern bank has the highest performance (0.753). Highest (0.743) and lowest (0.662) performance is observed during the second quarter of 2013 and fourth quarter of 2010 respectively. Inefficient Bank might be benefited by following the rules of efficient banks.

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Islamic Bank Efficiency in Indonesia: Stochastic Frontier Analysis

  • OCTRINA, Fajra;MARIAM, Alia Gantina Siti
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.1
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    • pp.751-758
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    • 2021
  • This research is conducted to measure the efficiency level of Islamic banking in Indonesia and also to analyze the factors that can affect its efficiency level. This research used a purposive sampling technique to determine the sample size that will be used, with criteria that the bank has been operating since 2010 and consistently published its financial reports during the research period from 2011 until 2019; therefore, the total sample obtained was 11 samples. Analysis for efficiency level is done by using linear programming Stochastic Frontier Analysis (SFA), with test tool in the form of Frontier 4.1 and Eviews9 to find out what factors that affect efficiency. Efficiency test is done by involving input and output, while influence test used bank-specific variables comprising bank size, bank financial ratio, and macro-economy variable. Research result shows that there are only two banks that are almost close to being fully efficient firms, but the result still does not indicate that Islamic bank works efficiently. Results of the influence test show that factors affecting Islamic banking efficiency in Indonesia are bank size, Capital Adequacy Ratio (CAR), Non-Performing Finance (NPF), and Financing to Deposit Ratio (FDR), while other factors are not influential over the study period.

A Review on Marketing Models' Implications to Market Positioning: With a Focus on the Hauser and Shugan Model (마케팅 모형의 포지셔닝 관련 시사점에 대한 고찰: Hauser and Shugan 모형을 중심으로)

  • Won, Jee-Sung
    • Journal of Distribution Science
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    • v.14 no.11
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    • pp.61-73
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    • 2016
  • Purpose - Marketing scholars have developed various types of mathematical models for describing marketing phenomenon, because there is no single model comprehensive enough to incorporate all the relevant marketing phenomena. This study tries to summarize the behavioral foundations and the mathematical derivations of the most widely used marketing models and discusses their strategic implications. This study selected four representative marketing models: multinomial logit(MNL) model, elimination-by-aspects(EBA) model, Hauser and Shugan model and Bass diffusion model. Especially, this study focuses on Hauser and Shugan(1983)'s Defender model and discusses the model's behavioral foundation and its implications. Research design, data, and methodology - Of the four selected model, the multinomial logit model is selected as the basic normative model and the other three models are described as descriptive models in contrast. Starting the discussion from the multinomial logit model, this study explains what important strategic variables are incorporated in each of the four models. The IIA(independence of irrelevant alternatives) axiom and Luce choice model is also discussed in relation to the multinomial logit model. The concept of 'efficient frontier' is discussed in relation to Hauser and Shugan's model. Graphs and tables are used to represent the key implications. No empirical study is included. Results - The analyses of the mathematical marketing models are shown to be very useful in understanding the essence of positioning strategy. The multinomial logit model implies the importance of increasing utility or consumer preference level. The EBA model implies the importance of lowering the inter-brand similarity and dominating the competitors. Hauser and Shugan model implies the importance of considering customer heterogeneity distribution in selecting the target market. Conclusions - It is shown that the concepts of 'efficient frontier' is useful in understanding the effectiveness of positioning strategy. Market positioning can be understood as occupying some place on the efficient frontier. The important strategic implications can be summarized as follows: Always try to increase customer preference by providing what they value, and differentiate from competing alternatives as much as possible. The best positioning strategy is to dominate all the competitors and the worst is to be dominated by the competitors.

The Relative Productivity to the Technology Frontier and Korea's Productivity Growth (기술선도국과의 상대적 생산성 수준과 한국 제조업 생산성간의 관계)

  • Choi, Yong-Seok
    • International Area Studies Review
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    • v.12 no.2
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    • pp.99-123
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    • 2008
  • In this paper, technology gap between Korea's manufacturing industries compared to technology frontier countries was estimated in order to take into account Korea's status as a technology follower country. Then by using this measure the role of technology gap was investigated in explaining total factor productivity growth of the Korean manufacturing at industry level. The main empirical findings are as follows: First, the conventional factors that were emphasized in the previous literature such as R&D intensity, trade openness and human capital play important role in explaining the growth rate of Korea's total factor productivity. Second, the larger the technology gap between Korea and technology leader country (and the faster the technology growth rate in the leader country), the higher the growth rate of total factor productivity in Korea as well. Third when the technology gap is large, the most efficient way of absorbing higher technology from frontier country seems to be the international trade channel rather than R&D or human capital accumulation.