On the combined estimation of technical efficiency and its application to agriculture

https://doi.org/10.17221/72/2014-AGRICECONCitation:Błażejczyk-Majka L., Kala R. (2015): On the combined estimation of technical efficiency and its application to agriculture. Agric. Econ. – Czech, 61: 441-449.
download PDF
Assessment of efficiency of businesses has been considered an object of interest by economists since the 1950’s. A number of methods have been developed, including the so-called parametric approaches, using the regression analysis, and the non-parametric approaches, connected with the mathematical programming techniques. However, the diversity of available methods, especially when supplying contradictory estimates, leads to confusion, hindering an objective interpretation of results. In this paper, we propose a procedure leading to the reduction of such discrepancies by the proper modification of a combined method linking the non-parametric approach with a parametric one. Usefulness of the proposed solution is shown by estimation of technical efficiency concerning the agricultural production in the USA and the selected regions of the European Union.
Aigner D.J., Chu S.F. (1968): On estimating the industry production function. American Economic Review, 58: 226–239.
Aigner Dennis, Lovell C.A.Knox, Schmidt Peter (1977): Formulation and estimation of stochastic frontier production function models. Journal of Econometrics, 6, 21-37  https://doi.org/10.1016/0304-4076(77)90052-5
Afriat S. N. (1972): Efficiency Estimation of Production Functions. International Economic Review, 13, 568-  https://doi.org/10.2307/2525845
Arnold Victor L., Bardhan Indranil R., Cooper William W., Kumbhakar Subal C. (1996): Chapter 12 New uses of DEA and statistical regressions for efficiency evaluation and estimation — with an illustrative application to public secondary schools in Texas. Annals of Operations Research, 66, 255-277  https://doi.org/10.1007/BF02187301
Assaf A. Georges, Agbola Frank W. (2011): Modelling the performance of Australian hotels: a DEA double bootstrap approach. Tourism Economics, 17, 73-89  https://doi.org/10.5367/te.2011.0027
Assaf A.G., Matawie K.M. (2009): A two-stage approach to efficiency modeling: an application to the Australian hospital food production industry. Journal of Hospitality & Tourism Research, 33: 284–304.
Battese G. E., Coelli T. J. (1992): Frontier production functions, technical efficiency and panel data: With application to paddy farmers in India. Journal of Productivity Analysis, 3, 153-169  https://doi.org/10.1007/BF00158774
Bardham I.R., Cooper W.W., Kumbhakar S.C. (1998): A simulation study of joint uses of data envelopment analysis and statistical regressions for production function estimation and efficiency evaluation. Journal of Productivity Analysis, 9: 249–278. https://doi.org/10.1023/A:1018339122236
Charnes A., Cooper W.W., Rhodes E. (1978): Measuring the efficiency of decision making units. European Journal of Operational Research, 2, 429-444  https://doi.org/10.1016/0377-2217(78)90138-8
Coelli T.J., Rao D.S.P., O’Donnell C.J., Battese G.E. (2005): An Introduction to Efficiency and Productivity Analysis.2nd ed. Springer Science+Business Media, New York.
Cooper W.W., Seiford L.M., Tone K. (2007): Data Envelopment Analysis: A Comprehensive Text with Models, Applications, References and Dea-solver Software. 2nd ed. Springer Science+Business Media, New York.
Cubbin John, Tzanidakis George (1998): Regression versus data envelopment analysis for efficiency measurement: an application to the England and Wales regulated water industry. Utilities Policy, 7, 75-85  https://doi.org/10.1016/S0957-1787(98)00007-1
Debreu Gerard (1951): The Coefficient of Resource Utilization. Econometrica, 19, 273-  https://doi.org/10.2307/1906814
Ferrier Gary D., Lovell C.A.Knox (1990): Measuring cost efficiency in banking. Journal of Econometrics, 46, 229-245  https://doi.org/10.1016/0304-4076(90)90057-Z
Farrell M. J. (1957): The Measurement of Productive Efficiency. Journal of the Royal Statistical Society. Series A (General), 120, 253-  https://doi.org/10.2307/2343100
Førsund F.R., Sarafoglou N. (2002): On the origins of data envelopment analysis. Journal of Productivity Analysis, 17: 23–40. https://doi.org/10.1023/A:1013519902012
Greene W.H. (2008): The econometric approach to efficiency analysis. In: Fried H., Lovell K., Schmidt S. (eds): The Measurement of Productive Efficiency and Productive Growth. Oxford University Press, Oxford New York.
Hu Jin-Li, Shieh Hwai-Shuh, Huang Chia-Hui, Chiu Chia-Ning (2009): Cost Efficiency of International Tourist Hotels in Taiwan: A Data Envelopment Analysis Application. Asia Pacific Journal of Tourism Research, 14, 371-384  https://doi.org/10.1080/10941660903310060
Meeusen Wim, van Den Broeck Julien (1977): Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error. International Economic Review, 18, 435-  https://doi.org/10.2307/2525757
Olson Kent, Vu Linh (2009): Economic efficiency in farm households: trends, explanatory factors, and estimation methods. Agricultural Economics, 40, 587-599  https://doi.org/10.1111/j.1574-0862.2009.00400.x
Pastor Jesús T. (1996): Chapter 3 Translation invariance in data envelopment analysis: A generalization. Annals of Operations Research, 66, 91-102  https://doi.org/10.1007/BF02187295
Sahoo Biresh Kumar (1999): A comparative application of data envelopment analysis and frontier translog production function for estimating returns to scale and efficiencies. International Journal of Systems Science, 30, 379-394  https://doi.org/10.1080/002077299292335
Sena V. (2003): The frontier approach to the measurement of productivity and technical efficiency. Economic Issues, 8: 71–97.
Sharma K.R, Leung P., Zaleski H.M. (1997): Productive efficiency of the swine industry in Hawaii: stochastic frontier vs. data envelopment analysis. Journal of Productivity Analysis, 8: 447–459. https://doi.org/10.1023/A:1007744327504
Thanassoulis E., Portela M., Despić O. (2008): Data envelopment analysis: the mathematical programming approach to efficiency analysis. In: Fried H., Lovell K., Schmidt S. (eds): The Measurement of Productive Efficiency and Productive Growth. Oxford University Press, Oxford, New York.
Timmer C. P. (1971): Using a Probabilistic Frontier Production Function to Measure Technical Efficiency. Journal of Political Economy, 79, 776-  https://doi.org/10.1086/259787
FAND data. Available at http://ec.europa.eu/agriculrure/rica
download PDF

© 2021 Czech Academy of Agricultural Sciences | Prohlášení o přístupnosti