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Ranking efficiency units in DEA using bootstrapping an applied analysis for Slovenian farm data

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  • Alexander Gocht
  • Kelvin Balcombe

Abstract

This article explores how data envelopment analysis (DEA), along with a smoothed bootstrap method, can be used in applied analysis to obtain more reliable efficiency rankings for farms. The main focus is the smoothed homogeneous bootstrap procedure introduced by Simar and Wilson (1998) to implement statistical inference for the original efficiency point estimates. Two main model specifications, constant and variable returns to scale, are investigated along with various choices regarding data aggregation. The coefficient of separation (CoS), a statistic that indicates the degree of statistical differentiation within the sample, is used to demonstrate the findings. The CoS suggests a substantive dependency of the results on the methodology and assumptions employed. Accordingly, some observations are made on how to conduct DEA in order to get more reliable efficiency rankings, depending on the purpose for which they are to be used. In addition, attention is drawn to the ability of the SLICE MODEL, implemented in GAMS, to enable researchers to overcome the computational burdens of conducting DEA (with bootstrapping). Copyright 2006 International Association of Agricultural Economists.

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Bibliographic Info

Article provided by International Association of Agricultural Economists in its journal Agricultural Economics.

Volume (Year): 35 (2006)
Issue (Month): 2 (09)
Pages: 223-229

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Handle: RePEc:bla:agecon:v:35:y:2006:i:2:p:223-229

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Cited by:
  1. Laure Latruffe & Fogarazi, Jozsef & Yann Desjeux, 2012. "Efficiency, productivity and technology comparison for farms in central and western europe : the case of field crop and dairy farming in hungary and france," Working Papers 169550, Institut National de la Recherche Agronomique, France.
  2. Thibbotuwawa, Manoj & Mugera, Amin W. & White, Benedict, 2012. "A Non-Parametric Analysis of Rice Production Efficiency in Sri Lanka," 2012 Conference (56th), February 7-10, 2012, Freemantle, Australia 124423, Australian Agricultural and Resource Economics Society.
  3. Abatania, Luke N. & Hailu, Atakelty & Mugera, Amin W., 2012. "Analysis of farm household technical efficiency in Northern Ghana using bootstrap DEA," 2012 Conference (56th), February 7-10, 2012, Freemantle, Australia 124211, Australian Agricultural and Resource Economics Society.

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