IDEAS home Printed from
   My bibliography  Save this article

A DEA approach to assess the efficiency of radiata pine logs to produce New Zealand structural grades


  • Alzamora, Rosa M.
  • Apiolaza, Luis A.


An efficiency analysis revealed the relative magnitude of wood traits that distinguishes efficient radiata pine logs to produce New Zealand structural grades. Technical and cost efficiencies were obtained by using data envelopment analysis (DEA). Wood trait prices used to perform the cost efficiency corresponded to economic weights derived from a partial regression. These values were 1.1, 29.7, 0.3 and −0.4NZ$/m3 for small end diameter (cm), stiffness (GPa), basic density (kg/m3) and largest branch (mm) respectively. The most efficient logs were those with the highest difference between recovery value and price. There were positive and significant correlations between technical efficiency and wood stiffness (0.46, p<0.05) and between cost efficiency and log recovery value (0.85, p<0.05). The most efficient logs had a ratio of 1:4 between stiffness and small end diameter whereas logs that did not generate structural lumber presented ratios close to 1:8. This information will inform the development of breeding objectives, and help segregating and pricing logs by using traits patterns that result in efficient logs for the production of structural wood.

Suggested Citation

  • Alzamora, Rosa M. & Apiolaza, Luis A., 2013. "A DEA approach to assess the efficiency of radiata pine logs to produce New Zealand structural grades," Journal of Forest Economics, Elsevier, vol. 19(3), pages 221-233.
  • Handle: RePEc:eee:foreco:v:19:y:2013:i:3:p:221-233
    DOI: 10.1016/j.jfe.2013.01.003

    Download full text from publisher

    File URL:
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    1. Mei Xue & Patrick T. Harker, 1999. "Overcoming the Inherent Dependency of DEA Efficiency Scores: A Bootstrap Approach," Center for Financial Institutions Working Papers 99-17, Wharton School Center for Financial Institutions, University of Pennsylvania.
    2. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    3. Chakraborty, Kalyan & Misra, Sukant & Johnson, Phillip, 2002. "Cotton Farmers' Technical Efficiency: Stochastic and Nonstochastic Production Function Approaches," Agricultural and Resource Economics Review, Cambridge University Press, vol. 31(02), pages 211-220, October.
    4. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132-132.
    5. Jahanshahloo, G.R. & Soleimani-damaneh, M. & Mostafaee, A., 2008. "A simplified version of the DEA cost efficiency model," European Journal of Operational Research, Elsevier, vol. 184(2), pages 814-815, January.
    6. 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.
    7. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, Oxford University Press, vol. 84(3), pages 488-500.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Log efficiency; DEA; Pinus radiata; Economic weights; Structural lumber; Breeding objectives;

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory


    Access and download statistics


    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:eee:foreco:v:19:y:2013:i:3:p:221-233. 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: (Dana Niculescu). General contact details of provider: .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.