IDEAS home Printed from https://ideas.repec.org/a/voj/journl/v64y2017i3p353-370id442.html
   My bibliography  Save this article

The Efficiency of Non-Homogeneity Security Firms in Taiwan

Author

Listed:
  • Yu-Chuan Chen
  • Pin Ruei Lee
  • Yung-Ho Chiu

Abstract

Data envelopment analysis (DEA) is a nonparametric technique for determining the efficiency of a homogeneous set of decision-making units (DMUs). There are two common problems with traditional DEA. First, traditional DEA fails to adequately distinguish the efficiency DMUs. Second, the DMUs within the same industry are non-homogeneous. This study aims to develop a system-ranking-efficiency model to solve the problems of non-homogeneity and efficiency ranking for DMUs in the same group. The proposed system-ranking-efficiency model is based on the concept of boundary change and considers the efficiency DMUs with the greatest influence on the boundary as the most important and, thus, as the ones that should have the highest efficiency ranking. The model is applied in the Taiwan securities industry, in which it was found to successfully rank all the DMUs. Key words: Data envelopment analysis, Non-homogeneity, System-DEA, Ranking. JEL: D24, G23. Obuhvatna analiza podataka (DEA) je neparametarska tehnika za određivanje efikasnosti homogenog skupa jedinica odlučivanja (DMU). Postoje dva osnovna problema sa tradicionalnom DEA. Prvo, tradicionalna DEA ne razlikuje adekvatno efikasne DMU. Drugo, DMU u okviru iste grane su ne-homogene. Ovo istraživanje ima za cilj da razvije model za efikasno rangiranje sistema kako bi se rešio problem ne-homogenosti i efikasnosti rangiranja unutar iste grupe. Predloženi model za efikasno rangiranje sistema se zasniva na konceptu granične promene i smatra da su DMU sa najvećim uticajem na graničnu vrednost najvažnije i, samim tim, treba da imaju najviši rang efikasnosti. Model se primenjuje u industriji osiguranja u Tajvanu, u kojoj je utvrđeno da system uspešn rangira sve DMU. Ključne reči: Obuhvatna analiza podataka, Nehomogenost, Sistem-DEA, Rangiranje.

Suggested Citation

  • Yu-Chuan Chen & Pin Ruei Lee & Yung-Ho Chiu, 2017. "The Efficiency of Non-Homogeneity Security Firms in Taiwan," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 64(3), pages 353-370.
    • Handle: RePEc:voj:journl:v:64:y:2017:i:3:p:353-370:id:442
    as

    Download full text from publisher

    File URL: https://panoeconomicus.org/index.php/jorunal/article/view/442/424
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

    Statistics

    Access and download statistics

    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:voj:journl:v:64:y:2017:i:3:p:353-370:id:442. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Ivana Horvat (email available below). General contact details of provider: https://panoeconomicus.org/index.php/jorunal/ .

    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.