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In context of global challenges facing agriculture, our article addresses the extent to which the synergistic nature of agroecological innovations may reconcile environmental and technical efficiency of farms. We develop an empirical model, namely conditional efficiency framework, which explicitly accounts for context-dependent drivers like synergy and complementarity of innovations. Using a sample of 567 banana farms in the French West Indies, our estimates confirm the complementarity effect since the joint adoption of agroecological innovations increases the technical efficiency scores much more than other drivers and each of the innovations taken in isolation. We also show that advice and extension services as well as human capital variables are key adoption levers for public policy since they reduce the variability of production and thus the risk associated with the joint adoption of the agroecological innovations. [ABSTRACT FROM AUTHOR]

Strategic emerging industries facilitate the deep integration of emerging technologies and strategic industries. Exploring the factors of the innovation efficiency of strategic emerging industries are of great significance to effectively implement the strategy of innovation-driven development and enhance national core competitiveness. In order to identify the linear and nonlinear influence of factors on innovation efficiency (separability hypothesis is taken into account), we apply a nonparametric robust frontier for empirical analysis. The empirical analysis relies on the sample of 186 strategic emerging enterprises in China. The results suggest that enterprise characteristics are the dominant factors of the efficiency of enterprise innovation. Among them, high-tech enterprises and enterprise size positively impact enterprise innovation, while the influence of enterprise age on innovation efficiency is nonlinear. According to the influence law of enterprise age, the enterprise life cycle can be divided into several periods, including survival, rapid growth, maturity, recession and metamorphosis. The innovation efficiency of enterprises is significantly different among industries, as the digital economy industry shows significantly lower level than the high-end equipment industry and new materials industry do. Similarly, the tertiary industry efficiency is significantly lower than that of the secondary industry. The innovation efficiency of strategic emerging enterprises has regional heterogeneity. Finally, this study provides policy suggestions for improvement of innovation efficiency of strategic emerging industries from the perspectives of government management and enterprise management. [ABSTRACT FROM AUTHOR]

This work explores the relationship between multinational R&D and innovation productivity among top corporate knowledge and R&D producers by adopting a twofold concept of internationalisation: (1) the firm's degree of R&D internationalisation, and (2) the firm's geographic diversification. We model the patent production process with an appropriate and robust conditional Data Envelopment Analysis (DEA) estimator, using a unique database of firms that matches financial indicators and patent information. Our results reinforce the fundamental role of internationalisation in the knowledge production process when the internationalisation process is properly and strategically managed. We interpret our empirical evidence through the theoretical lens of the learning theory of internationalisation, and we postulate that a high R&D intensity is a key driver to overcoming the challenges of internationalisation. [ABSTRACT FROM AUTHOR]

• A new non-parametric methodology with robust frontiers is developed. • The impact of environmental constraints on waste management efficiency is measured by conditional order-m data panel. • Inter-municipal cooperation adapts best to changing environmental conditions. This paper presents a new non-parametric methodology in which robust frontiers are used to measure the impact of environmental constraints on efficiency. In this approach, a data panel structure is applied to determine which management forms for the delivery of municipal services – public or private, in cooperation or individual – are best suited to the environment where the services are provided. The study method proposed is then applied to analyse the waste collection service provided in Spanish municipalities during the period 2002–2014. The results obtained show that of the management forms considered inter-municipal cooperation adapts best to heterogeneous environmental conditions. [ABSTRACT FROM AUTHOR]

This paper investigates the conditional technical and managerial efficiency of European banks through the lending channel using a robust nonparametric frontier approach. We select the largest commercial banks in France, Germany, the United Kingdom, Italy, Spain, and Greece over the period 2005–2013 for our study. The estimates show significant technical inefficiency in the use of available resources for banks in our sample. The overall measure of managerial efficiency suggests sound managerial performance. However, at a detailed level, we find that, for each country examined, banks exhibit large proportions of poor managerial performance. This may explain why some banks could not resist the 2008 financial crisis. Regarding institutional factors, we find capital requirements and bank size are associated with bank efficiency in a nonlinear manner. These findings provide support for contextual factors in determining bank efficiency and rethinking financial reforms. [ABSTRACT FROM AUTHOR]

The study applies the probabilistic framework of nonparametric frontier estimation to model the effect of competitive conditions on sectors' production efficiency levels. We utilize conditional order-m robust frontiers to model the dynamic effects of competition on a sample of U.S. manufacturing sectors over the period 1958–2009. Contrary to the existing studies, we apply for the first time in the Industrial Organization literature the latest advances of robust nonparametric frontier analysis to disentagle the dynamic effects alongside the effects of competition on sectors' productive efficiency levels. The results derived from the time-dependent robust conditional estimators unveil a non-linear relationship between product market competition and productive efficiency. Our findings suggest that for higher competition levels the effect is positive up to a certain threshold after which the effect becomes negative. [ABSTRACT FROM AUTHOR]

This paper investigates whether there has been any improvement in efficiency convergence of banks in India during the post-reform period considering bank ownership structures, using a balanced panel for 73 banks over the time period 1996–2014. Utilizing nonparametric frontier estimators, we compute time-dependent bank efficiency scores, which allow us to examine the dynamics of technological frontier and catch-up levels of Indian banks, and to explore the convergence patterns in the estimated efficiency levels. Our results signify that the state-owned banks, which dominate the banking activity in India, establish themselves as the best performers, ahead of the private, foreign and cooperative banks during post-2005. Even during the recent global financial crisis period, we find that bank efficiency levels increased, except for foreign banks which have had the greatest adverse impact. The convergence results show that heterogeneity is present in bank efficiency convergence, which points to the presence of club formation suggesting that Indian banks' efficiency convergence is partly driven by the ownership structure. [ABSTRACT FROM AUTHOR]

Directional distances provide useful, flexible measures of technical efficiency of production units relative to the efficient frontier of the attainable set in input-output space. In addition, the additive nature of directional distances permits negative input or outputs quantities. The choice of the direction allows analysis of different strategies for the units attempting to reach the efficient frontier. Simar et al. (Eur J Oper Res 220:853–864, 2012) and Simar and Vanhems (J Econom 166:342–354, 2012) develop asymptotic properties of full-envelopment, FDH and DEA estimators of directional distances as well as robust order-m and order- α directional distance estimators. Extensions of these estimators to measures conditioned on environmental variables Z are also available (e.g., see Daraio and Simar in Eur J Oper Res 237:358–369, 2014). The resulting estimators have been shown to share the properties of their corresponding radial measures. However, to date the algorithms proposed for computing the directional distance estimates suffer from various numerical drawbacks (Daraio and Simar in Eur J Oper Res 237:358–369, 2014). In particular, for the order-m versions (conditional and unconditional) only approximations, based on Monte-Carlo methods, have been suggested, involving additional computational burden. In this paper we propose a new fast and efficient method to compute exact values of the directional distance estimates for all the cases (full and partial frontier cases, unconditional or conditional to external factors), that overcome all previous difficulties. This new method is illustrated on simulated and real data sets. Matlab code for computation is provided in an "Appendix". [ABSTRACT FROM AUTHOR]

In efficiency studies, inputs and outputs are often noisy measures, especially when education data is used. This article complements the conditional efficiency model by correcting for bias within conditional draws, using the m out of n bootstrap procedure. With a unique panel dataset, we estimate managerial efficiency, which accounts for nondiscretionary variables, and explain efficiency differentials of adult education programs in Flanders. Our results suggest that the characteristics of learners in a program matter for managerial efficiency, and that teacher characteristics are strongly correlated with efficiency differentials, as more homogeneity in the teacher workforce appears to result in higher program efficiency. [ABSTRACT FROM AUTHOR]

The paper examines in a nonparametric frontier framework the effect of exports on Latin American countries' technological change and technological catch-up levels over the period 1950–2014. Based on the probabilistic approach of nonparametric production efficiency measurement, we apply time-dependent conditional full and partial efficiency estimators to evaluate countries' export orientation policies over the examined period. The results reveal that the effect of countries' export activity on their technological change and technological catch-up levels is nonlinear. Overall our findings suggest that up to a certain point, lower export shares enhance countries' technological catch-up levels. The results also reveal that higher export shares affect positively their technological change levels. Finally, in a second stage analysis we apply a location-scale regression model in order to estimate the idiosyncratic part of the estimated production efficiencies. This measure is a proxy of Solow's residual accounting for aggregate effects of other factors not included in our estimation. [ABSTRACT FROM AUTHOR]

The growing economic and environmental importance of managing water resources at a global level also entails greater efforts and interest in improving the functioning and efficiency of the increasingly more numerous wastewater treatment plants (WWTPs). In this context, this study analyzes the efficiency of a uniform sample of plants of this type located in the region of Valencia (Spain). The type of efficiency measure used for this (conditional order-m efficiency) allows continuous and discrete contextual variables to be directly involved in the analysis and enables the assessment of their statistical significance and effect (positive or negative). The main findings of the study showed that the quality of the influent water and also the size and age of the plants had a significant influence on their efficiency levels. In particular, as regards the effect of such variables, the findings pointed to the existence of an inverse relationship between the quality of the influent water and the efficiency of the WWTPs. Also, a lower annual volume of treated water and more modern installations showed a positive influence. Additionally, the average efficiency levels observed turned out to be higher than those reported in previous studies.

Summary: In this paper, we demonstrate that standard central limit theorem (CLT) results do not hold for means of non‐parametric, conditional efficiency estimators, and we provide new CLTs that permit applied researchers to make valid inference about mean conditional efficiency or to compare mean efficiency across groups of producers. The new CLTs are used to develop a test of the restrictive ‘separability’ condition that is necessary for second‐stage regressions of efficiency estimates on environmental variables. We show that if this condition is violated, not only are second‐stage regressions difficult to interpret and perhaps meaningless, but also first‐stage, unconditional efficiency estimates are misleading. As such, the test developed here is of fundamental importance to applied researchers using non‐parametric methods for efficiency estimation. The test is shown to be consistent and its local power is examined. Our simulation results indicate that our tests perform well both in terms of size and power. We provide a real‐world empirical example by re‐examining the paper by Aly et al. (1990, Review of Economics and Statistics 72, 211–18) and rejecting the separability assumption implicitly assumed by Aly et al., calling into question results that appear in hundreds of papers that have been published in recent years. [ABSTRACT FROM AUTHOR]

This paper analyses region-level technical efficiency in nine European countries over the 1995-2007 period. We propose the application of a nonparametric conditional frontier approach to account for the presence of heterogeneous conditions in the form of geographical externalities. Such environmental factors are beyond the control of regional authorities, but may affect the production function. Therefore, they need to be considered in the frontier estimation. Specifically, a spatial autoregressive term is included as an external conditioning factor in a robust order- m model. Thus we can test the hypothesis of non-separability (the external factor impacts both the input-output space and the distribution of efficiencies), demonstrating the existence of significant global interregional spillovers into the production process. Our findings show that geographical externalities affect both the frontier level and the probability of being more or less efficient. Specifically, the results support the fact that the spatial lag variable has an inverted U-shaped non-linear impact on the performance of regions. This finding can be interpreted as a differential effect of interregional spillovers depending on the size of the neighboring economies: positive externalities for small values, possibly related to agglomeration economies, and negative externalities for high values, indicating the possibility of production congestion. Additionally, evidence of the existence of a strong geographic pattern of European regional efficiency is reported and the levels of technical efficiency are acknowledged to have converged during the period under analysis. [ABSTRACT FROM AUTHOR]

The assessment of technical efficiency in the agricultural sector and the influence of exogenous (environmental) variables on the production process has been a major topic of economic research especially for managers and policy makers. The methological innovation of the present study involves the impact of environmental variables on efficiency and the utilization of panel data for the empirical analysis. This has been pursued using full nonparametric robust frontier techniques (the alpha-quantile estimator) and a panel data set of olive growing farms in Greece from the Farm Accountancy Data Network of the EU. According to the empirical results, the ratio of owned to total land, the ratio of family to total labor, the degree of specialization, and a farm’s location have a statistically significant impact on performance, which is not constant but varies over the 2006 to 2009 period considered.

This paper uses a fully nonparametric framework to assess the efficiency of primary schools using data about schools in 16 European countries participating in PIRLS 2011. This study represents an original enterprise since most of the empirical research in the field is restricted to evaluations at regional or national level and focused on secondary education. For our purpose, we adapt the metafrontier framework to compare and decompose the technical efficiency of primary schools operating in heterogeneous contexts, which in our case is represented by different educational systems or countries. Similarly, we use an extension of the conditional nonparametric robust approach to test the potential influence of a mixed set of environmental school factors and variables representing cultural values of each country. Our results indicate that the intergenerational transmission of non-cognitive skills such as responsibility or perseverance are significantly related to school efficiency, whereas most school factors do not seem to have a significant influence on school performance. [ABSTRACT FROM AUTHOR]

This paper investigates in a non-parametric framework whether academic programmes maximize their student graduation rates and programme quality ratings given the first-year student dropout rates. In addition, it explores what institutional and programme characteristics explain this interaction. The results show a large variation in how academic programmes are able to deal with the selective nature of first-year dropout. Nevertheless, we can accurately explain the variation among programmes by programme and institutional characteristics. It seems that universities can maximize the relation between first-year dropout, graduation rates and quality ratings in several ways: (1) by improving student programme satisfaction, (2) by better preparing certain groups of students for higher education, (3) by supporting male students, (4) by supporting ethnic minority students, (5) by attracting older staff, and (6) by strengthening the selective nature of the first year (ie, increasing the academic dismissal policy threshold). [ABSTRACT FROM AUTHOR]

Municipal solid waste collection is a public service with impact on the environment, public health, and the appearance of a municipal area. The standard of efficiency achieved in providing this service has a direct impact on household expenditure, since the costs of collection are recovered through citizens’ taxes. The failure to consider relevant performance drivers recently led some Italian waste utilities into bankruptcy and financial collapse. Following prior research to identify the environmental and operational variables affecting the efficiency and quality of waste collection services, this study applies a more suitable and robust non-parametric method based on conditional order-m efficiency to identify the performance drivers of the waste collection services in 40 municipalities in Verona province, Italy. The exogenous variables studied could be clustered as 1) customer features (size of population served, population density, tourist flows, and percentage of non-residential customers; 2) household features, measured by number of inhabitants per house; and 3) operational features, represented by tons of waste collected for each load, method adopted (curbside or street bin), and maturity achieved with a given method. The study demonstrates that all variables affect the cost efficiency of waste collection with different intensity and direction. [ABSTRACT FROM AUTHOR]

This paper investigates how the efficiency of universities is affected by the characteristics of the territory in which they operate. The theoretical framework combines two perspectives: (1) the resource dependence theory, suggesting that the location of university can determine the amount of resources available to it; (2) institutional isomorphism, according to which the characteristics of other higher education institutions located in the same area may shape the university production function and the efficiency of its operations. In order to test this framework we use data on Russian universities and a non-parametric conditional order-m efficiency estimator with two categories of contextual variables. The first group includes the social, economic and cultural characteristics of the region where the university is located, while the second deal with the characteristics of other higher education institutions located in the same region. The main contribution of this paper is that it applies efficiency models that incorporate exogenous factors associated with a geographical area in context of higher education. Our findings highlight that the managerial efficiency of universities is strongly associated with the contextual factors of the environment in which they are embedded. Important policy implication of this result is that different public policies in higher education should treat particular universities differently depending on characteristics of context in which they operate. • We analyze how characteristics of the territory where a university is exert in influence its efficiency. • Efficiency of universities is strongly associated with the contextual factors of the environment. • The strongest predictors of universities efficiency are variables reflecting competitive environment. [ABSTRACT FROM AUTHOR]

The objective of this paper is to assess technical efficiency of cereal production in Greece in a nonparametric framework while accounting for a set of exogenous variables. To this end, we implement robust partial frontier techniques on a sample of cereal-producing farms included in the Farm Accountancy Data Network (FADN). Moreover, we assess the partial impacts of the environmental variables using non parametric regression tools.

The growing economic and environmental importance of managing water resources at a global level also entails greater efforts and interest in improving the functioning and efficiency of the increasingly more numerous wastewater treatment plants (WWTPs). In this context, this study analyzes the efficiency of a uniform sample of plants of this type located in the region of Valencia (Spain). The type of efficiency measure used for this (conditional order-m efficiency) allows continuous and discrete contextual variables to be directly involved in the analysis and enables the assessment of their statistical significance and effect (positive or negative). The main findings of the study showed that the quality of the influent water and also the size and age of the plants had a significant influence on their efficiency levels. In particular, as regards the effect of such variables, the findings pointed to the existence of an inverse relationship between the quality of the influent water and the efficiency of the WWTPs. Also, a lower annual volume of treated water and more modern installations showed a positive influence. Additionally, the average efficiency levels observed turned out to be higher than those reported in previous studies. [ABSTRACT FROM AUTHOR]

This paper studies the role of direct democracy in ensuring efficient and cost-effective provision of goods and services in the public sector. The sample consists of the population of municipalities in the German State of Bavaria, where in the mid-1990s considerable direct democratic reforms granted citizens wide opportunities to directly participate in local affairs through binding initiatives. Using information on the municipal resources and the municipal provision of public goods, and applying a fully non-parametric approach to estimate local government overall efficiency, the analysis shows that more direct democratic activity is associated with higher government efficiency. This result suggests that more inclusive governance through direct decision-making mechanisms may induce more accountable and less inefficient governments. [ABSTRACT FROM AUTHOR]

We analyse the effect of competition on technical efficiency of Italian airports by applying a novel conditional nonparametric frontier analysis for the first time to the airport industry. We find that competition affects mostly the frontier of best performers, whilst airports that are lagging behind are less influenced. A novel two stage approach shows that, on average, competition has a negative impact on technical efficiency. We estimate a measure of pure efficiency , whitened from the main effect of the competition, whose distribution has a bi-modal shape, indicating the existence of two differently managed groups of airports. [ABSTRACT FROM AUTHOR]

The German potable water supply industry is regarded highly fragmented, thus preventing efficiency improvements that could happen through consolidation. Focusing on a hypothetical restructuring of the industry, we use a cross-section sample of 364 German water utilities in 2006, applying Data Envelopment Analysis, to analyze the potential efficiency gains from hypothetical mergers between water utilities at the county level. A conditional efficiency framework is applied to account for the water utilities' operating environments. A conditional order- m approach is applied for the detection of potential outlying observations. Merger gains are decomposed into a technical efficiency effect, a harmony effect and a scale effect. The greatest efficiency improvement potentials turn out to result from reducing individual inefficiencies while pure merger gains are found to be low. The results suggest improving incentives for efficient operations in water supply and a consolidation of the smallest water utilities. [ABSTRACT FROM AUTHOR]

The evaluation of market structures and the quantification of returns to scale in network industries usually are of high interest for researchers and policy makers. Regarding the debate on optimal market structures in German potable water supply, we use a cross-sectional sample of 364 German water utilities observed in 2006 to derive a nonparametric measure of scale elasticity for the water industry. The data sample is validated by applying a super-efficiency approach and a statistical testing procedure for outlier detection. Besides using a standard data envelopment analysis approach, a conditional efficiency approach is applied to account for the water utilities' operating environments. The results indicate non-decreasing returns to scale for the majority of water utilities and constant or non-increasing returns for larger utilities. Optimal firm size is found to be generally larger than the current sample median firm size. Efficiency improvements could be realized by increases in firm sizes and through a consolidation of the industry. [ABSTRACT FROM AUTHOR]

The performance of economic producers is often affected by external or environmental factors that, unlike the inputs and the outputs, are not under the control of the Decision Making Units (DMUs). These factors can be included in the model as exogenous variables and can help to explain the efficiency differentials, as well as improve the managerial policy of the evaluated units. A fully nonparametric methodology, which includes external variables in the frontier model and defines conditional DEA and FDH efficiency scores, is now available for investigating the impact of external-environmental factors on the performance. In this paper, we offer a state-of-the-art review of the literature, which has been proposed to include environmental variables in nonparametric and robust (to outliers) frontier models and to analyse and interpret the conditional efficiency scores, capturing their impact on the attainable set and/or on the distribution of the inefficiency scores. This paper develops and complements the approach of Bădin et al. () by suggesting a procedure that allows us to make local inference and provide confidence intervals for the impact of the external factors on the process. We advocate for the nonparametric conditional methodology, which avoids the restrictive 'separability' assumption required by the two-stage approaches in order to provide meaningful results. An illustration with real data on mutual funds shows the usefulness of the proposed approach. [ABSTRACT FROM AUTHOR]

This paper provides empirical evidence of the link between countries’ cultural factors and innovation performance. By defining innovation process in a knowledge production framework it uses conditional and unconditional Data Envelopment Analysis (DEA) models together with data from the European Innovation Scoreboard for the year 2007 and Hofstede’s cultural indexes. In this way it models and measures the effect of cultural values on 25 European countries’ innovation efficiency levels. The empirical results reveal that national culture can impact countries’ innovation performance. Specifically, we find significant negative effects on countries’ innovation efficiency levels for countries with higher power distance and uncertainty avoidance values. [ABSTRACT FROM AUTHOR]

Existing university rankings apply fixed and exogenous weights based on a theoretical framework, stakeholder or expert opinions. Fixed weights cannot embrace all requirements of a 'good ranking' according to the Berlin Principles. As the strengths of universities differ, the weights on the ranking should differ as well. This paper proposes a fully nonparametric methodology to rank universities. The methodology is in line with the Berlin Principles. It assigns to each university the weights that maximize (minimize) the impact of the criteria where university performs relatively well (poor). The method accounts for background characteristics among universities and evaluates which characteristics have an impact on the ranking. In particular, it accounts for the level of tuition fees, an English speaking environment, size, research or teaching orientation. In general, medium sized universities in English speaking countries benefit from the benevolent ranking. On the contrary, we observe that rankings with fixed weighting schemes reward large and research oriented universities. Especially Swiss and German universities significantly improve their position in a more benevolent ranking. [ABSTRACT FROM AUTHOR]

Abstract: Students’ evaluations of teacher performance (SETs) are increasingly used by universities. However, SETs are controversial mainly due to two issues: (1) teachers value various aspects of excellent teaching differently, and (2) SETs should not be determined on exogenous influences. Therefore, this paper constructs SETs using a tailored version of the non-parametric Data Envelopment Analysis approach. In particular, we account for different values and interpretations that teachers attach to ‘good teaching’. Moreover, we reduce the impact of measurement errors and a-typical observations, and account explicitly for heterogeneous background characteristics arising from teacher, student and course characteristics. [Copyright &y& Elsevier]

This paper presents a methodology to aggregate multidimensional research output. Using a tailored version of the non-parametric Data Envelopment Analysis model, we account for the large heterogeneity in research output and the individual researcher preferences by endogenously weighting the various output dimensions. The approach offers three important advantages compared to the traditional approaches: (1) flexibility in the aggregation of different research outputs into an overall evaluation score; (2) a reduction of the impact of measurement errors and a-typical observations; and (3) a correction for the influences of a wide variety of factors outside the evaluated researcher's control. As a result, research evaluations are more effective representations of actual research performance. The methodology is illustrated on a data set of all faculty members at a large polytechnic university in Belgium. The sample includes questionnaire items on the motivation and perception of the researcher. This allows us to explore whether motivation and background characteristics (such as age, gender, retention, etc.,) of the researchers explain variations in measured research performance. [ABSTRACT FROM AUTHOR]

The aim of this article is to assess the efficiency improvement potential of Finnish dairy farms and to explain performance differences between farms using alternative production frontier methods. In our empirical analysis, we employ parametric, semiparametric, and fully nonparametric production frontier techniques to investigate differences between methodologies and to guarantee that the empirical results are not sensitive to the specific method used. Although we find marked differences in average efficiency with respect to alternative frontier techniques, the correlation of efficiency scores between methods is high, indicating that the order is fairly consistent. With regard to the determinants of performance differences, all the methods used provide fairly similar results concerning the influential factors. The results suggest that farms located in the north were significantly less efficient compared to farms in southern Finland. As the milk yield per cow is increased, efficiency scores increase on average, but stagnate or start to fall again at the highest levels of average milk yields. [ABSTRACT FROM AUTHOR]