IDEAS home Printed from https://ideas.repec.org/a/caa/jnlage/v61y2015i10id72-2014-agricecon.html

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

Author

Listed:
  • Lucyna BŁAŻEJCZYK-MAJKA

    (Department of Economic History, Adam Mickiewicz University in Poznań, Poznań, Poland)

  • Radosław KALA

    (Department of Mathematical and Statistical Methods, Poznań University of Life Sciences, Poznań, Poland)

Abstract

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.

Suggested Citation

  • Lucyna BŁAŻEJCZYK-MAJKA & Radosław KALA, 2015. "On the combined estimation of technical efficiency and its application to agriculture," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 61(10), pages 441-449.
    • Handle: RePEc:caa:jnlage:v:61:y:2015:i:10:id:72-2014-agricecon
    DOI: 10.17221/72/2014-AGRICECON
    as

    Download full text from publisher

    File URL: http://agricecon.agriculturejournals.cz/doi/10.17221/72/2014-AGRICECON.html
    Download Restriction: free of charge
    File URL: https://libkey.io/10.17221/72/2014-AGRICECON?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Afriat, Sidney N, 1972. "Efficiency Estimation of Production Function," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 13(3), pages 568-598, October.
    2. Finn Førsund & Nikias Sarafoglou, 2002. "On the Origins of Data Envelopment Analysis," Journal of Productivity Analysis, Springer, vol. 17(1), pages 23-40, January.
    3. V Sena, 2003. "The Frontier Approach to the Measurement of Productivity and Technical Efficiency," Economic Issues Journal Articles, Economic Issues, vol. 8(2), pages 71-97, September.
    4. 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.
    5. A. Georges Assaf & Frank W. Agbola, 2011. "Modelling the Performance of Australian Hotels: A DEA Double Bootstrap Approach," Tourism Economics, , vol. 17(1), pages 73-89, February.
    6. Kent Olson & Linh Vu, 2009. "Economic efficiency in farm households: trends, explanatory factors, and estimation methods," Agricultural Economics, International Association of Agricultural Economists, vol. 40(5), pages 587-599, September.
    7. Khem Sharma & Pingsun Leung & Halina Zaleski, 1997. "Productive Efficiency of the Swine Industry in Hawaii: Stochastic Frontier vs. Data Envelopment Analysis," Journal of Productivity Analysis, Springer, vol. 8(4), pages 447-459, November.
    8. 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, March.
    9. Indranil Bardhan & William Cooper & Subal Kumbhakar, 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, Springer, vol. 9(3), pages 249-278, March.
    10. William W. Cooper & Lawrence M. Seiford & Kaoru Tone, 2007. "Data Envelopment Analysis," Springer Books, Springer, edition 0, number 978-0-387-45283-8, March.
    11. 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, Elsevier, vol. 7(2), pages 75-85, June.
    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


    Cited by:

    1. Aleksandra Marcikić Horvat & Bojan Matkovski & Stanislav Zekić & Boris Radovanov, 2020. "Technical efficiency of agriculture in Western Balkan countries undergoing the process of EU integration," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(2), pages 65-73.
    2. Kyshakevych, Bohdan & Melnyk, Olga & Maksyshko, Natalia & Maturin, Yuriy & Kotyk, Yaroslaw, . "Systemic issues and efficiency reserves in EU agriculture: a slack-based DEA approach," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 11(1).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Parmeter, Christopher F., 2021. "Is it MOLS or COLS?," Efficiency Series Papers 2021/04, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    2. Valentin Zelenyuk, 2019. "Data Envelopment Analysis and Business Analytics: The Big Data Challenges and Some Solutions," CEPA Working Papers Series WP072019, School of Economics, University of Queensland, Australia.
    3. Effendy & M Fardhal Pratama & Rustam Abdul Rauf & Made Antara & Muhammad Basir-Cyio & Mahfudz & Muhardi, 2019. "Factors influencing the efficiency of cocoa farms: A study to increase income in rural Indonesia," PLOS ONE, Public Library of Science, vol. 14(4), pages 1-15, April.
    4. Maria Francesca Cracolici & Peter Nijkamp & Piet Rietveld, 2008. "Assessment of Tourism Competitiveness by Analysing Destination Efficiency," Tourism Economics, , vol. 14(2), pages 325-342, June.
    5. Błażejczyk-Majka Lucyna, 2017. "Application of DEA for Evaluating the Efficiency of Economic Policy as Exemplified by EU Agriculture," Studia Historiae Oeconomicae, Sciendo, vol. 35(1), pages 163-176, December.
    6. G. Thomas Sav, 2012. "Efficiency Estimates and Rankings Employing Data Envelopment and Stochastic Frontier Analyses: Evaluating the Management of U.S. Public Colleges," Information Management and Business Review, AMH International, vol. 4(8), pages 444-452.
    7. Zelenyuk, Valentin, 2020. "Aggregation of inputs and outputs prior to Data Envelopment Analysis under big data," European Journal of Operational Research, Elsevier, vol. 282(1), pages 172-187.
    8. Amar Oukil & Slim Zekri, 2021. "Investigating farming efficiency through a two stage analytical approach: Application to the agricultural sector in Northern Oman," Papers 2104.10943, arXiv.org.
    9. Forsund, Finn R. & Sarafoglou, Nikias, 2005. "The tale of two research communities: The diffusion of research on productive efficiency," International Journal of Production Economics, Elsevier, vol. 98(1), pages 17-40, October.
    10. W. Cooper & C. Lovell, 2011. "History lessons," Journal of Productivity Analysis, Springer, vol. 36(2), pages 193-200, October.
    11. Mehdiloo, Mahmood & Podinovski, Victor V., 2019. "Selective strong and weak disposability in efficiency analysis," European Journal of Operational Research, Elsevier, vol. 276(3), pages 1154-1169.
    12. Francesco Silvi & Giuseppe Di Giacomo & Aline Pennisi, 2013. "L?efficienza delle strutture periferiche del ministero del lavoro e delle politiche sociali," RIVISTA DI ECONOMIA E STATISTICA DEL TERRITORIO, FrancoAngeli Editore, vol. 2013(3), pages 5-44.
    13. Ole Bent Olesen & Niels Christian Petersen & Victor V. Podinovski, 2022. "Scale characteristics of variable returns-to-scale production technologies with ratio inputs and outputs," Annals of Operations Research, Springer, vol. 318(1), pages 383-423, November.
    14. Nadimi, Reza & Tokimatsu, Koji, 2019. "Potential energy saving via overall efficiency relying on quality of life," Applied Energy, Elsevier, vol. 233, pages 283-299.
    15. Blasejczyk-Majka, Lucyna & Kala, Radoslaw & Maciejewski, Krzysztof, 2011. "Do Field Crop Farms and Mixed Farms of Old and New EU Members Improve Productivity at the Same Rate? A Regional Level Approach," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114254, European Association of Agricultural Economists.
    16. Konstantinos Petridis & Alexander Chatzigeorgiou & Emmanouil Stiakakis, 2016. "A spatiotemporal Data Envelopment Analysis (S-T DEA) approach: the need to assess evolving units," Annals of Operations Research, Springer, vol. 238(1), pages 475-496, March.
    17. Nadia M. Guerrero & Juan Aparicio & Daniel Valero-Carreras, 2022. "Combining Data Envelopment Analysis and Machine Learning," Mathematics, MDPI, vol. 10(6), pages 1-22, March.
    18. Cheng, Gang & Qian, Zhenhua, 2011. "Dea数据标准化方法及其在方向距离函数模型中的应用 [Data normalization for data envelopment analysis and its application to directional distance function]," MPRA Paper 31995, University Library of Munich, Germany.
    19. Pin-Chih Wang & Yuh-Ming Lee & Chiu-Yang Chen, 2014. "Estimation of Resource Productivity and Efficiency: An Extended Evaluation of Sustainability Related to Material Flow," Sustainability, MDPI, vol. 6(9), pages 1-18, September.
    20. Cherchye, Laurens & Rock, Bram De & Walheer, Barnabé, 2015. "Multi-output efficiency with good and bad outputs," European Journal of Operational Research, Elsevier, vol. 240(3), pages 872-881.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:caa:jnlage:v:61:y:2015:i:10:id:72-2014-agricecon. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ivo Andrle (email available below). General contact details of provider: https://www.cazv.cz/en/home/ .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.