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Data Envelopment Analysis To Measure Technical Efficiency In The Algerian Companies

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  • Bouadam, Kamel
  • Chiad, Faycal

Abstract

This paper aims to use data envelopment analysis in measuring and analyzing the technical efficiency of 11 agro-alimentary companies using non-parametric data envelopment analysis (DEA) models under a constant returns to scale technology. This method is often used for measurement and evaluation of decision making units. We use the term decision making unit (DMU) to refer to any entity that is to be evaluated in terms of its abilities to convert inputs into outputs. This method also shows its easiness in use and availability of softwares. We have chosen eleven companies from agro-alimentary sector in S�tif, using two inputs and one output: the two inputs are fixed assets, current and number of employees. The output is the net income. This paper shows that the major Algerian companies are inefficient and they must improve their efficiencies.

Suggested Citation

  • Bouadam, Kamel & Chiad, Faycal, 2011. "Data Envelopment Analysis To Measure Technical Efficiency In The Algerian Companies," MPRA Paper 113845, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:113845
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    File URL: https://mpra.ub.uni-muenchen.de/113845/1/MPRA_paper_113845.pdf
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    References listed on IDEAS

    as
    1. Kalyan Chakraborty & Basudeb Biswas & W. Cris Lewis, 2001. "Measurement of Technical Efficiency in Public Education: A Stochastic and Nonstochastic Production Function Approach," Southern Economic Journal, John Wiley & Sons, vol. 67(4), pages 889-905, April.
    2. 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.
    3. Charnes, A. & Cooper, W. W. & Golany, B. & Seiford, L. & Stutz, J., 1985. "Foundations of data envelopment analysis for Pareto-Koopmans efficient empirical production functions," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 91-107.
    4. Kalyan Chakraborty & Basudeb Biswas & W. Cris Lewis, 2001. "Measurement of Technical Efficiency in Public Education: A Stochastic and Nonstochastic Production Function Approach," Southern Economic Journal, John Wiley & Sons, vol. 67(4), pages 889-905, April.
    5. A. Charnes & W. W. Cooper & E. Rhodes, 1981. "Evaluating Program and Managerial Efficiency: An Application of Data Envelopment Analysis to Program Follow Through," Management Science, INFORMS, vol. 27(6), pages 668-697, June.
    6. Timothy J. Coelli & D.S. Prasada Rao & Christopher J. O’Donnell & George E. Battese, 2005. "An Introduction to Efficiency and Productivity Analysis," Springer Books, Springer, edition 0, number 978-0-387-25895-9, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    data envelopment analysis; linear programming; technical efficiency; input; output; agro-alimentary;
    All these keywords.

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • C4 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics

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