Advanced Search
MyIDEAS: Login to save this article or follow this journal

Statistical precision of DEA and Malmquist indices: A bootstrap application to Norwegian grain producers

Contents:

Author Info

  • Odeck, James
Registered author(s):

    Abstract

    Previous applications of data envelopment analysis (DEA) and its subsequent Malmquist indices to efficiency and productivity measurements have been criticised for not providing statistical inferences regarding the significance of observed results. In this paper, DEA and a Malmquist index are combined with a bootstrap method in order to provide succinct statistical inferences that determine the performance of grain producers in Eastern Norway. The data cover the period between 1987 and 1997. Results reveal: (i) a significant degree of inefficiency (approximately 11%) and an average productivity progress of 38% over the period considered; (ii) the formidable productivity progress observed is primarily explained by technical efficiency changes that enabled producers to catch up with front runners; and (iii) environmental factors, such as weather conditions, impact both efficiency and productivity. Finally, the analysis reveals that using bootstrapping to make statistical inferences suggests that researchers should be careful in making performance comparisons based on conventional DEA methods, as any discovered differences may not be significant.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.sciencedirect.com/science/article/B6VC4-4V3HHJX-1/2/3b874fa144784a59be624fd426e14c89
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Elsevier in its journal Omega.

    Volume (Year): 37 (2009)
    Issue (Month): 5 (October)
    Pages: 1007-1017

    as in new window
    Handle: RePEc:eee:jomega:v:37:y:2009:i:5:p:1007-1017

    Contact details of provider:
    Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/375/description#description

    Order Information:
    Postal: http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
    Web: https://shop.elsevier.com/order?id=375&ref=375_01_ooc_1&version=01

    Related research

    Keywords: Significance testing of DEA Bootstrapping Efficiency measurement Productivity growth Grain production;

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Simar, L. & Wilson, P.W., 1999. "Statistical Inference in Nonparametric Frontier Models: the State of the Art," Papers 9904, Catholique de Louvain - Institut de statistique.
    2. Briec, Walter & Kerstens, Kristiaan, 2009. "Multi-horizon Markowitz portfolio performance appraisals: A general approach," Omega, Elsevier, vol. 37(1), pages 50-62, February.
    3. Francisco J. André, 2007. "Indirect Elicitation of Non-Linear Multiattribute Utility Functions. A Dual Procedure Combined with DEA," Working Papers 07.02, Universidad Pablo de Olavide, Department of Economics.
    4. Cherchye, Laurens & Van Puyenbroeck, Tom, 2007. "Profit efficiency analysis under limited information with an application to German farm types," Omega, Elsevier, vol. 35(3), pages 335-349, June.
    5. Adler, Nicole & Raveh, Adi, 2008. "Presenting DEA graphically," Omega, Elsevier, vol. 36(5), pages 715-729, October.
    6. Botti, Laurent & Briec, Walter & Cliquet, Gérard, 2009. "Plural forms versus franchise and company-owned systems: A DEA approach of hotel chain performance," Omega, Elsevier, vol. 37(3), pages 566-578, June.
    7. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity," Econometrica, Econometric Society, vol. 50(6), pages 1393-1414, November.
    8. Bernhard Brümmer, 2001. "Estimating confidence intervals for technical efficiency: the case of private farms in slovenia," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 28(3), pages 285-306, October.
    9. Léopold Simar & Paul W. Wilson, 1998. "Sensitivity Analysis of Efficiency Scores: How to Bootstrap in Nonparametric Frontier Models," Management Science, INFORMS, vol. 44(1), pages 49-61, January.
    10. A Oude Lansink & E Silva & S Stefanou, 2000. "Decomposing productivity growth allowing efficiency gains and price-induced technical progress," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 27(4), pages 497-518, December.
    11. SIMAR, Léopold & WILSON, Paul, 1996. "Estimating and bootstrapping malmquist indices," CORE Discussion Papers 1996060, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    12. Rikard Althin, 2001. "Measurement of Productivity Changes: Two Malmquist Index Approaches," Journal of Productivity Analysis, Springer, vol. 16(2), pages 107-128, September.
    13. Avkiran, Necmi K., 2009. "Removing the impact of environment with units-invariant efficient frontier analysis: An illustrative case study with intertemporal panel data," Omega, Elsevier, vol. 37(3), pages 535-544, June.
    14. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    15. Avkiran, Necmi K., 2009. "Opening the black box of efficiency analysis: An illustration with UAE banks," Omega, Elsevier, vol. 37(4), pages 930-941, August.
    16. Timo Kuosmanen & Diemuth Pemsl & Justus Wesseler, 2006. "Specification and Estimation of Production Functions Involving Damage Control Inputs: A Two-Stage, Semiparametric Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(2), pages 499-511.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Rodrigo Taborda & Julieth Santamaría, 2011. "Productivity growth in electric energy retail in Colombia. A bootstrapped malmquist indices approach," DOCUMENTOS DE TRABAJO 009152, UNIVERSIDAD DEL ROSARIO.
    2. Alperovych, Yan & Amess, Kevin & Wright, Mike, 2013. "Private equity firm experience and buyout vendor source: What is their impact on efficiency?," European Journal of Operational Research, Elsevier, vol. 228(3), pages 601-611.
    3. Assaf, A. George & Barros, Carlos & Sellers-Rubio, Ricardo, 2011. "Efficiency determinants in retail stores: a Bayesian framework," Omega, Elsevier, vol. 39(3), pages 283-292, June.
    4. Yu, Yan & Wen, Zongguo, 2010. "Evaluating China's urban environmental sustainability with Data Envelopment Analysis," Ecological Economics, Elsevier, vol. 69(9), pages 1748-1755, July.
    5. Ramanathan, Ramakrishnan & Ramanathan, Usha, 2010. "A qualitative perspective to deriving weights from pairwise comparison matrices," Omega, Elsevier, vol. 38(3-4), pages 228-232, June.
    6. Liu, John S. & Lu, Louis Y.Y. & Lu, Wen-Min & Lin, Bruce J.Y., 2013. "Data envelopment analysis 1978–2010: A citation-based literature survey," Omega, Elsevier, vol. 41(1), pages 3-15.
    7. Simon, Jose & Simon, Clara & Arias, Alicia, 2011. "Changes in productivity of Spanish university libraries," Omega, Elsevier, vol. 39(5), pages 578-588, October.
    8. Simona Sanguineti & Alessio Tei, 2012. "L’efficienza delle aziende di Trasporto Pubblico Locale: confronto tra le maggiori realtà italiane," ECONOMIA E DIRITTO DEL TERZIARIO, FrancoAngeli Editore, vol. 2012(3), pages 359-377.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:eee:jomega:v:37:y:2009:i:5:p:1007-1017. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.