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Table 3 Expected effect of environmental variables on technical inefficiency

From: The determinants of technical efficiency of a large scale HIV prevention project: application of the DEA double bootstrap using panel data from the Indian Avahan

Category Variable name Description Expected effect Justification
Type of client FSW/Yit Share of female sex workers (FSW) in total reached population that includes sex workers and men who have sex with men (MSM) - It may be easier to reach female sex workers than MSM given the high stigma against MSM in India, then the proportion of FSW in high-risk population may decrease inefficiency
Potential scale Log of estimated population Estimated number of high-risk population in the district + or- Acts as a barrier to NGO expansion since NGOs cannot expand beyond district. However, NGOs located in areas with many high-risk populations could also experience some logistic and management issues
Competition NGOs per district Number of NGOs in the district + or- There could be some positive or negative externalities on the average cost depending on the density of the NGOs per district
Solo district Takes the value of 1 if the NGO is alone to operate in the district and the value of 0 if there is a co-intervention with other AIDS control society intervention or a non-Avahan intervention + Competition between NGOs of different projects may reduce inefficiency then NGO operation alone may be positively correlated with inefficiency. NGOs operating alone in a district may also be as a result of the remoteness and poor characteristics of the districts which should also be positively with inefficiency
Purchasing & funding NGOs per SLP Number of NGOs supported by the same SLP + or- One could argue that SLP that are only contracting with a unique NGO could lack of experience, however if the number of NGOs per SLP is too high, it may be a source of managerial issue.
SLP SLP dummy + or- Depending on the SLP characteristics
Mismanagement NGO replaced NGO was replaced by another NGO + May be a signal for high level of inefficiency. May capture corruption level and a lack of organisation.
Maturity Years in Avahan Number of years in the Avahan initiative - Gain of experience may decrease inefficiency
HIV experience Had HIV experience before entering Avahan - NGOs with experience in HIV may have already worked with high-risk groups which could decrease inefficiency
Time Year dummy - Inefficiency is likely to decrease over time