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Malmquist productivity indices and plant capacity utilisation: new proposals and empirical application.

ABSTRACT: The purpose of this contribution is to compute the popular Malmquist productivity index while adding a component representing plant capacity utilisation. In particular, this is-to the best of our knowledge-the first empirical application estimating both input- and output-oriented Malmquist productivity indices in conjunction with the corresponding input- and output-oriented plant capacity utilisation measures. Our empirical application focuses on a provincial data set of tourism activities in China over the period 2008-2016. The results contain the output- and input-oriented Malmquist productivity indices, some Spearman rank correlations between both, a t-test whether these indices differ from unity, and some bootstrapping analysis.

Supplementary information

The online version contains supplementary material available at 10.1007/s10479-022-04771-8.

SUBMITTER: Kerstens K

PROVIDER: S-EPMC9150390 | biostudies-literature | 2022

REPOSITORIES: biostudies-literature

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Malmquist productivity indices and plant capacity utilisation: new proposals and empirical application.

Kerstens Kristiaan K Sadeghi Jafar J Van de Woestyne Ignace I Zhang Linjia L

Annals of operations research 20220530 1

The purpose of this contribution is to compute the popular Malmquist productivity index while adding a component representing plant capacity utilisation. In particular, this is-to the best of our knowledge-the first empirical application estimating both input- and output-oriented Malmquist productivity indices in conjunction with the corresponding input- and output-oriented plant capacity utilisation measures. Our empirical application focuses on a provincial data set of tourism activities in Ch ...[more]

PMID: 35669680

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Project description:BackgroundThe pursuit of efficiency and productivity is one of the goals of health systems. In the era of Sustainable Development Goals and particularly the move towards universal health coverage, it is imperative to curb wastage of resources to ensure sustainable access of the population to needed and effective health services without enduring financial hardship. This study aims to assess total factor productivity change of national health systems of 20 countries in the WHO's Eastern Mediterranean Region.MethodsData Envelopment Analysis (DEA)-based Malmquist index is used to assess total factor productivity change and its components - efficiency change and technical change. To assess the robustness of the Malmquist index estimates, bootstrapping was performed. Outputs used are life expectancy at birth for both sexes and infant mortality; while total expenditure on health per capita in international dollars (PPP) is used as a measure of input. Panel data for the period 2003-2014 was extracted from databases of the WHO and the World Bank.ResultsIn all but five countries covered in the study, a decline in the mean total factor productivity is observed during the period 2003-2014. The decline is driven by technical regress. In all countries, the technical change component of the Malmquist TFP index is less than unity (range: 0.896 to 0.945). All countries exhibited growth in efficiency (efficiency change exceeding one) except two countries (Djibouti and Iraq). The growth in efficiency was mainly due to change in scale efficiency. Overall, total factor productivity in the region declined by 3.8%. This was due to a 9.1% decline in technical change, which overshadowed the 5.8% increase in efficiency. Three countries - Libya, Qatar and Yemen - showed a marginal growth in total factor productivity. There was no change in total factor productivity in Kuwait and Lebanon.ConclusionThe decline in total factor productivity over the study period is likely to hamper achieving the targets of Sustainable Development Goal 3 of ensuring healthy lives and promoting well-being for all at all ages. It is recommended that country-level studies on efficiency and productivity of health systems be conducted in order to intensively examine the determinants of inefficiency and productivity decline and implement appropriate interventions that could enhance efficiency and productivity.

Project description:BackgroundIn China, most primary health care institutes (PHCIs) support ground-level medical services which are essential to residents' health levels. The Chinese government implemented a health reform in 2009 to strengthen PHCIs through increased fiscal inputs. However, how efficiently these inputs were converted into PHCIs' services remains unclear. We aimed to examine the efficiency of PHCIs' medical services and investigate if any changes occurred following the implementation of the health reform.MethodsWe aggregated data from PHCIs from Hainan's 18 districts (2011-21), treating those from the same district as one decision-making unit (DMU). We used three-stage data envelopment analysis (DEA) to assess the efficiencies of these PHCIs, adjusting the approach for environmental factors, managerial ineffectiveness, and statistical errors potentially arising from the background variability of measured data that deviates from the input and output values, allowing all DMUs to be compared in a homogeneous environment. We used the adjusted efficiency scores to evaluate the efficiency of PHCIs in Hainan each year and the Malmquist Productivity Index (MPI) to explore the productivity change of PHCIs over time.ResultsAfter adjusting for environmental factors between 2011-21, technical efficiency (TE) decreased from 0.825 to 0.745, pure technical efficiency (PTE) increased from 0.936 to 0.954, and scale efficiency (SE) decreased from 0.883 to 0.783. Seven districts had full PTE (1.0) and two districts had full TE (1.0) after adjustment. The mean MPI from 2011 to 2021 was 0.9430, indicating a 5.7% decrease in PHCIs' efficiency. After excluding the low productivity index possibly influenced by COVID-19 (2019 to 2021), PHCIs' efficiency decreased by 0.49%, with a mean MPI of 0.9951.ConclusionsThe efficiency of PHCIs in Hainan has declined slightly since the health reform. Low level of scale efficiency posed a significant impact on the overall efficiency of the medical services in PHCIs. Among potential inefficient technological performances, future policy formulation might focus more on the imbalanced allocation of resources in less-developed regions and PHCIs' lack of attractiveness to local patients.

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Malmquist productivity indices and plant capacity utilisation: new proposals and empirical application.

Supplementary information

Publications

Malmquist productivity indices and plant capacity utilisation: new proposals and empirical application.

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