IDEAS home Printed from https://ideas.repec.org/a/spr/fininn/v6y2020i1d10.1186_s40854-020-0170-0.html
   My bibliography  Save this article

Overall profit Malmquist productivity index under data uncertainty

Author

Listed:
  • Dariush Akbarian

    (Department of Mathematics, Arak Branch, Islamic Azad University)

Abstract

The calculation of the overall profit Malmquist productivity index (MPI) requires precise and accurate information on the input, output, input-output prices of each decision making unit (DMU). However, in many situations, some inputs and/or outputs and input-output prices are imprecise. As such, we consider the overall profit MPI problem when the input, output, and input-output prices are imprecise and vary over intervals, showing that method (MCM 54: 2827–2838, 2011) has some shortfalls. To remedy these shortfalls, we propose another method for measuring the overall profit MPI when the inputs, outputs, and price vectors vary over intervals. That is, to calculate the overall profit efficiency intervals, cone-ratio data envelopment analysis models can be applied to the incorporated information as weight restrictions. Further, we provide a new approach to calculating the upper bound of the overall profit efficiency of each DMU. A numerical example is provided for illustrating the proposed method.

Suggested Citation

  • Dariush Akbarian, 2020. "Overall profit Malmquist productivity index under data uncertainty," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 6(1), pages 1-20, December.
    • Handle: RePEc:spr:fininn:v:6:y:2020:i:1:d:10.1186_s40854-020-0170-0
    DOI: 10.1186/s40854-020-0170-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s40854-020-0170-0
    File Function: Abstract
    Download Restriction: no
    File URL: https://libkey.io/10.1186/s40854-020-0170-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. SHOKOUHI, Amir H. & SHAHIRIARI, Hamid & AGRELL, Per J. & HATAMI-MARBINI, Adel, 2014. "Consistent and robust ranking in imprecise data envelopment analysis under perturbations of random subsets of data," LIDAM Reprints CORE 2556, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    2. EMROUZNEJAD, Ali & ROSTAMY-MALKHALIFEH, Mohsen & HATAMI-MARBINI, Adel & TAVANA, Madjid, 2011. "An overall profit Malmquist productivity index with fuzzy and interval data," LIDAM Reprints CORE 2375, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    3. Mostafaee, A. & Saljooghi, F.H., 2010. "Cost efficiency measures in data envelopment analysis with data uncertainty," European Journal of Operational Research, Elsevier, vol. 202(2), pages 595-603, April.
    4. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity," Econometrica, Econometric Society, vol. 50(6), pages 1393-1414, November.
    5. Toloo, Mehdi & Keshavarz, Esmaeil & Hatami-Marbini, Adel, 2018. "Dual-role factors for imprecise data envelopment analysis," Omega, Elsevier, vol. 77(C), pages 15-31.
    6. Shabani, Amir & Visani, Franco & Barbieri, Paolo & Dullaert, Wout & Vigo, Daniele, 2019. "Reliable estimation of suppliers’ total cost of ownership: An imprecise data envelopment analysis model with common weights," Omega, Elsevier, vol. 87(C), pages 57-70.
    7. Wayne F. Bialas & Mark H. Karwan, 1984. "Two-Level Linear Programming," Management Science, INFORMS, vol. 30(8), pages 1004-1020, August.
    8. Zhang, Huanhuan & Kou, Gang & Peng, Yi, 2019. "Soft consensus cost models for group decision making and economic interpretations," European Journal of Operational Research, Elsevier, vol. 277(3), pages 964-980.
    9. Fang, Lei & Li, Hecheng, 2012. "A comment on “cost efficiency in data envelopment analysis with data uncertainty”," European Journal of Operational Research, Elsevier, vol. 220(2), pages 588-590.
    10. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "Multilateral Comparisons of Output, Input, and Productivity Using Superlative Index Numbers," Economic Journal, Royal Economic Society, vol. 92(365), pages 73-86, March.
    11. Adel Hatami-Marbini & Per J. Agrell & Hirofumi Fukuyama & Kobra Gholami & Pegah Khoshnevis, 2017. "The role of multiplier bounds in fuzzy data envelopment analysis," Annals of Operations Research, Springer, vol. 250(1), pages 249-276, March.
    12. Asmild, Mette & Paradi, Joseph C. & Reese, David N. & Tam, Fai, 2007. "Measuring overall efficiency and effectiveness using DEA," European Journal of Operational Research, Elsevier, vol. 178(1), pages 305-321, April.
    13. William W. Cooper & Kyung Sam Park & Gang Yu, 1999. "IDEA and AR-IDEA: Models for Dealing with Imprecise Data in DEA," Management Science, INFORMS, vol. 45(4), pages 597-607, April.
    14. Podinovski, Victor V., 2001. "DEA models for the explicit maximisation of relative efficiency," European Journal of Operational Research, Elsevier, vol. 131(3), pages 572-586, June.
    15. Babak Fazelabdolabadi, 2019. "Uncertainty and energy-sector equity returns in Iran: a Bayesian and quasi-Monte Carlo time-varying analysis," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 5(1), pages 1-20, December.
    16. Barros, C.P. & Emrouznejad, Ali, 2016. "Assessing productive efficiency of banks using integrated Fuzzy-DEA and bootstrapping: A case of Mozambican banksAuthor-Name: Wanke, Peter," European Journal of Operational Research, Elsevier, vol. 249(1), pages 378-389.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sungmin Park & Pansoo Kim, 2021. "Operational Performance Evaluation of Korean Ship Parts Manufacturing Industry Using Dynamic Network SBM Model," Sustainability, MDPI, vol. 13(23), pages 1-20, November.
    2. Alireza Amirteimoori & Tofigh Allahviranloo & Aliasghar Arabmaldar, 2024. "Scale elasticity and technical efficiency measures in two-stage network production processes: an application to the insurance sector," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 10(1), pages 1-21, December.
    3. Olga Kutnohorská & Dana Strachotová & Marek Botek & Stanislava Grosová, 0000. "The Influence Of The Field Of Business On The Development Of Productivity In Selected Companies Of The Czech Chemical Industry," Proceedings of Economics and Finance Conferences 14716504, International Institute of Social and Economic Sciences.
    4. Marek Botek & Olga Kutnohorská & Dana Strachotová & Stanislava Grosová, 0000. "Productivity Development Of Companies Of The Czech Chemical Industry," Proceedings of International Academic Conferences 14616446, International Institute of Social and Economic Sciences.
    5. Osama Mohamed Ahmed Enad & Salah Murtada Abdelrahman Gerinda, 2022. "Enhancing financial performance of the banks: the role of customer response and operations management," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-16, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Adel Hatami-Marbini & Aliasghar Arabmaldar & John Otu Asu, 2022. "Robust productivity growth and efficiency measurement with undesirable outputs: evidence from the oil industry," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 44(4), pages 1213-1254, December.
    2. Aghayi, Nazila & Maleki, Bentolhoda, 2016. "Efficiency measurement of DMUs with undesirable outputs under uncertainty based on the directional distance function: Application on bank industry," Energy, Elsevier, vol. 112(C), pages 376-387.
    3. Adel Hatami-Marbini & Zahra Ghelej Beigi & Jens Leth Hougaard & Kobra Gholami, 2014. "Estimating Returns to Scale in Imprecise Data Envelopment Analysis," MSAP Working Paper Series 07_2014, University of Copenhagen, Department of Food and Resource Economics.
    4. Cui, Qiang & Lin, Jing-ling & Jin, Zi-yin, 2020. "Evaluating airline efficiency under “Carbon Neutral Growth from 2020” strategy through a Network Interval Slack-Based Measure," Energy, Elsevier, vol. 193(C).
    5. Arabmaldar, Aliasghar & Sahoo, Biresh K. & Ghiyasi, Mojtaba, 2023. "A generalized robust data envelopment analysis model based on directional distance function," European Journal of Operational Research, Elsevier, vol. 311(2), pages 617-632.
    6. Mehdi Toloo & Esmaeil Keshavarz & Adel Hatami-Marbini, 2021. "An interval efficiency analysis with dual-role factors," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 43(1), pages 255-287, March.
    7. Jan Kluge & Sarah Lappöhn & Kerstin Plank, 2023. "Predictors of TFP growth in European countries," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 50(1), pages 109-140, February.
    8. Zaim, Osman & Uygurtürk Gazel, Tuğçe & Akkemik, K. Ali, 2017. "Measuring energy intensity in Japan: A new method," European Journal of Operational Research, Elsevier, vol. 258(2), pages 778-789.
    9. Helen Simpson, 2009. "Productivity In Public Services," Journal of Economic Surveys, Wiley Blackwell, vol. 23(2), pages 250-276, April.
    10. Nadiri, M. Ishaq & Prucha, Ingmar R., 1990. "Dynamic factor demand models, productivity measurement, and rates of return: Theory and an empirical application to the US Bell System," Structural Change and Economic Dynamics, Elsevier, vol. 1(2), pages 263-289, December.
    11. Babalos, Vassilios & Caporale, Guglielmo Maria & Philippas, Nikolaos, 2012. "Efficiency evaluation of Greek equity funds," Research in International Business and Finance, Elsevier, vol. 26(2), pages 317-333.
    12. Byrnes, Joel & Crase, Lin & Dollery, Brian & Villano, Renato, 2010. "The relative economic efficiency of urban water utilities in regional New South Wales and Victoria," Resource and Energy Economics, Elsevier, vol. 32(3), pages 439-455, August.
    13. Isabel-María García-Sánchez & Luis Rodríguez-Domínguez & Javier Parra-Domínguez, 2013. "Yearly evolution of police efficiency in Spain and explanatory factors," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 21(1), pages 31-62, January.
    14. Fox, Kevin J. & Grafton, R. Quentin & Kirkley, James & Squires, Dale, 2003. "Property rights in a fishery: regulatory change and firm performance," Journal of Environmental Economics and Management, Elsevier, vol. 46(1), pages 156-177, July.
    15. Lei Fang & Hecheng Li, 2013. "Lower bound of cost efficiency measure in DEA with incomplete price information," Journal of Productivity Analysis, Springer, vol. 40(2), pages 219-226, October.
    16. Shabani, Amir & Visani, Franco & Barbieri, Paolo & Dullaert, Wout & Vigo, Daniele, 2019. "Reliable estimation of suppliers’ total cost of ownership: An imprecise data envelopment analysis model with common weights," Omega, Elsevier, vol. 87(C), pages 57-70.
    17. Pierce, Justin R., 2011. "Plant-level responses to antidumping duties: Evidence from U.S. manufacturers," Journal of International Economics, Elsevier, vol. 85(2), pages 222-233.
    18. Edvardsen, Dag Fjeld & Forsund, Finn R., 2003. "International benchmarking of electricity distribution utilities," Resource and Energy Economics, Elsevier, vol. 25(4), pages 353-371, October.
    19. Yu Mao & Yonglin Li & Deyi Xu & Yaqi Wu & Jinhua Cheng, 2022. "Spatial-Temporal Evolution of Total Factor Productivity in Logistics Industry of the Yangtze River Economic Belt, China," Sustainability, MDPI, vol. 14(5), pages 1-16, February.
    20. Van Ha, Nguyen & Kant, Shashi & Maclaren, Virginia, 2008. "Shadow prices of environmental outputs and production efficiency of household-level paper recycling units in Vietnam," Ecological Economics, Elsevier, vol. 65(1), pages 98-110, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:fininn:v:6:y:2020:i:1:d:10.1186_s40854-020-0170-0. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.