IDEAS home Printed from https://ideas.repec.org/a/kap/jproda/v38y2012i3p319-331.html
   My bibliography  Save this article

Measurement of technical efficiency in farrow-to-finish swine production using multi-activity network data envelopment analysis: evidence from Taiwan

Author

Listed:
  • Po-Chi Chen

Abstract

This study aims to propose a dynamic multi-activity network data development analysis (DMNDEA) model to measure the technical efficiency of farrow-to-finish swine production in Taiwan. Production phases are explicitly divided into two activities; namely, the breed-to-farrow phase and the wean-to-finish phase. By using this model, the problem of shared inputs and dynamic intermediates among activities that characterize pig production are taken into account in an integrated framework, simultaneously with the consideration of non-zero slack, allowing us to examine aspects of production in a more comprehensive and factual manner. For the empirical results based on sample data from 2006 to 2007, it is shown that the overall technical inefficiencies obtained from DMNDEA are not obviously different from those obtained using a traditional one-stage model. However, the DMNDEA results explicitly show us that the sources of inefficiency for each farm are different. Furthermore, second-stage bootstrapping regression results reveal that the determinants of efficiency for each production phase are not the same, indicating the need to identify the influential factors for each production phase separately. Copyright Springer Science+Business Media, LLC 2012

Suggested Citation

  • Po-Chi Chen, 2012. "Measurement of technical efficiency in farrow-to-finish swine production using multi-activity network data envelopment analysis: evidence from Taiwan," Journal of Productivity Analysis, Springer, vol. 38(3), pages 319-331, December.
  • Handle: RePEc:kap:jproda:v:38:y:2012:i:3:p:319-331
    DOI: 10.1007/s11123-012-0267-1
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11123-012-0267-1
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1007/s11123-012-0267-1?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 search for a different version of it.

    References listed on IDEAS

    as
    1. Rolf Färe & Shawna Grosskopf & Gerald Whittaker, 2014. "Network DEA II," International Series in Operations Research & Management Science, in: Wade D. Cook & Joe Zhu (ed.), Data Envelopment Analysis, edition 127, chapter 0, pages 307-327, Springer.
    2. Tsutsui, Miki & Goto, Mika, 2009. "A multi-division efficiency evaluation of U.S. electric power companies using a weighted slacks-based measure," Socio-Economic Planning Sciences, Elsevier, vol. 43(3), pages 201-208, September.
    3. Lorenzo Castelli & Raffaele Pesenti & Walter Ukovich, 2010. "A classification of DEA models when the internal structure of the Decision Making Units is considered," Annals of Operations Research, Springer, vol. 173(1), pages 207-235, January.
    4. Isabelle Piot-Lepetit & Monique Le Moing, 2007. "Productivity and environmental regulation : the effect of the nitrates directive in the French pig sector," Post-Print hal-02375148, HAL.
    5. Tsai, P. F. & Mar Molinero, C., 2002. "A variable returns to scale data envelopment analysis model for the joint determination of efficiencies with an example of the UK health service," European Journal of Operational Research, Elsevier, vol. 141(1), pages 21-38, August.
    6. Wade Cook & Moez Hababou & Hans Tuenter, 2000. "Multicomponent Efficiency Measurement and Shared Inputs in Data Envelopment Analysis: An Application to Sales and Service Performance in Bank Branches," Journal of Productivity Analysis, Springer, vol. 14(3), pages 209-224, November.
    7. Fukuyama, Hirofumi & Weber, William L., 2009. "A directional slacks-based measure of technical inefficiency," Socio-Economic Planning Sciences, Elsevier, vol. 43(4), pages 274-287, December.
    8. Rajiv D. Banker, 1993. "Maximum Likelihood, Consistency and Data Envelopment Analysis: A Statistical Foundation," Management Science, INFORMS, vol. 39(10), pages 1265-1273, October.
    9. Tonsor, Glynn T. & Featherstone, Allen M., 2006. "Heterogeneous Production Efficiency of Specialized Swine Producers," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35379, Southern Agricultural Economics Association.
    10. Simar, Leopold & Wilson, Paul W., 2007. "Estimation and inference in two-stage, semi-parametric models of production processes," Journal of Econometrics, Elsevier, vol. 136(1), pages 31-64, January.
    11. Liu, Junming & Tone, Kaoru, 2008. "A multistage method to measure efficiency and its application to Japanese banking industry," Socio-Economic Planning Sciences, Elsevier, vol. 42(2), pages 75-91, June.
    12. Galanopoulos, Konstantinos & Aggelopoulos, Stamatis & Kamenidou, Irene & Mattas, Konstadinos, 2006. "Assessing the effects of managerial and production practices on the efficiency of commercial pig farming," Agricultural Systems, Elsevier, vol. 88(2-3), pages 125-141, June.
    13. Amin W. Mugera & Allen M. Featherstone, 2008. "Backyard Hog Production Efficiency: Evidence from the Philippines," Asian Economic Journal, East Asian Economic Association, vol. 22(3), pages 267-287, September.
    14. Mette Asmild & Jens Leth Hougaard, 2006. "Economic versus environmental improvement potentials of Danish pig farms," Agricultural Economics, International Association of Agricultural Economists, vol. 35(2), pages 171-181, September.
    15. Isabelle Piot-Lepetit & Monique Moing, 2007. "Productivity and environmental regulation: the effect of the nitrates directive in the French pig sector," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 38(4), pages 433-446, December.
    16. Lansink, Alfons Oude & Reinhard, Stijn, 2004. "Investigating technical efficiency and potential technological change in Dutch pig farming," Agricultural Systems, Elsevier, vol. 79(3), pages 353-367, March.
    17. Tone, Kaoru & Tsutsui, Miki, 2009. "Network DEA: A slacks-based measure approach," European Journal of Operational Research, Elsevier, vol. 197(1), pages 243-252, August.
    18. Wade Cook & Dan Chai & John Doyle & Rodney Green, 1998. "Hierarchies and Groups in DEA," Journal of Productivity Analysis, Springer, vol. 10(2), pages 177-198, October.
    19. Rowland, William W. & Langemeier, Michael R. & Schurle, Bryan W. & Featherstone, Allen M., 1998. "A Nonparametric Efficiency Analysis for a Sample of Kansas Swine Operations," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 30(1), pages 189-199, July.
    20. Luenberger, David G., 1992. "Benefit functions and duality," Journal of Mathematical Economics, Elsevier, vol. 21(5), pages 461-481.
    21. Khem R. Sharma & PingSun Leung & Halina M. Zaleski, 1999. "Technical, allocative and economic efficiencies in swine production in Hawaii: a comparison of parametric and nonparametric approaches," Agricultural Economics, International Association of Agricultural Economists, vol. 20(1), pages 23-35, January.
    22. Sharma, Khem R. & Leung, PingSun & Zaleski, Halina M., 1999. "Technical, allocative and economic efficiencies in swine production in Hawaii: a comparison of parametric and nonparametric approaches," Agricultural Economics, Blackwell, vol. 20(1), pages 23-35, January.
    23. Cooper, W.W. & Huang, Zhimin & Li, Susan X. & Parker, Barnett R. & Pastor, Jesus T., 2007. "Efficiency aggregation with enhanced Russell measures in data envelopment analysis," Socio-Economic Planning Sciences, Elsevier, vol. 41(1), pages 1-21, March.
    24. Tone, Kaoru & Tsutsui, Miki, 2010. "Dynamic DEA: A slacks-based measure approach," Omega, Elsevier, vol. 38(3-4), pages 145-156, June.
    25. 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.
    26. Rolf Färe & Gerald Whittaker, 1995. "An Intermediate Input Model Of Dairy Production Using Complex Survey Data," Journal of Agricultural Economics, Wiley Blackwell, vol. 46(2), pages 201-213, May.
    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. Kao, Chiang, 2014. "Network data envelopment analysis: A review," European Journal of Operational Research, Elsevier, vol. 239(1), pages 1-16.
    2. Frederic Ang & Pieter Jan Kerstens, 2016. "To Mix or Specialise? A Coordination Productivity Indicator for English and Welsh farms," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(3), pages 779-798, September.
    3. Bai, Xuejie & Sun, Xianzhen & Chiu, Yung-Ho, 2020. "Does China's higher education investment play a role in industrial growth?," Technology in Society, Elsevier, vol. 63(C).
    4. Lim, Dong-Joon & Kim, Moon-Su, 2022. "Measuring dynamic efficiency with variable time lag effects," Omega, Elsevier, vol. 108(C).
    5. Bo Hsiao & Li-Hsueh Chen, 2019. "Performance Evaluation for Taiwanese Hospitals by Multi-Activity Network Data Envelopment Analysis," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 18(03), pages 1009-1043, May.
    6. Omrani, Hashem & Soltanzadeh, Elham, 2016. "Dynamic DEA models with network structure: An application for Iranian airlines," Journal of Air Transport Management, Elsevier, vol. 57(C), pages 52-61.
    7. Gangyi Wang & Chang’e Zhao & Yuzhuo Shen & Ni Yin, 2021. "Estimation of cost efficiency of fattening pigs, sows, and piglets using SFA approach analysis: Evidence from China," PLOS ONE, Public Library of Science, vol. 16(12), pages 1-22, December.
    8. Yu, Ming-Miin & Chen, Li-Hsueh & Hsiao, Bo, 2016. "Dynamic performance assessment of bus transit with the multi-activity network structure," Omega, Elsevier, vol. 60(C), pages 15-25.

    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. Kao, Chiang, 2014. "Network data envelopment analysis: A review," European Journal of Operational Research, Elsevier, vol. 239(1), pages 1-16.
    2. Lampe, Hannes W. & Hilgers, Dennis, 2015. "Trajectories of efficiency measurement: A bibliometric analysis of DEA and SFA," European Journal of Operational Research, Elsevier, vol. 240(1), pages 1-21.
    3. Shwu-Huei Huang & Ming-Miin Yu & Ming-Shenq Hwang & Yu-Shan Wei & Ming-Huei Chen, 2017. "Efficiency of Tax Collection and Tax Management in Taiwan's Local Tax Offices," Pacific Economic Review, Wiley Blackwell, vol. 22(4), pages 620-648, October.
    4. S. Lozano & G. Villa, 2019. "Data envelopment analysis of systems with multiple modes of functioning," Annals of Operations Research, Springer, vol. 278(1), pages 17-41, July.
    5. Agata Malak-Rawlikowska & Monika Gębska & Robert Hoste & Christine Leeb & Claudio Montanari & Michael Wallace & Kees de Roest, 2021. "Developing a Methodology for Aggregated Assessment of the Economic Sustainability of Pig Farms," Energies, MDPI, vol. 14(6), pages 1-25, March.
    6. Liu, John S. & Lu, Louis Y.Y. & Lu, Wen-Min, 2016. "Research fronts in data envelopment analysis," Omega, Elsevier, vol. 58(C), pages 33-45.
    7. Chen, Zhongfei & Wanke, Peter & Antunes, Jorge Junio Moreira & Zhang, Ning, 2017. "Chinese airline efficiency under CO2 emissions and flight delays: A stochastic network DEA model," Energy Economics, Elsevier, vol. 68(C), pages 89-108.
    8. AGRELL, Per & HATAMI-MARBINI, Adel, 2011. "Frontier-based performance analysis models for supply chain management; state of the art and research directions," LIDAM Discussion Papers CORE 2011069, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    9. Antonio Peyrache & Maria C. A. Silva, 2019. "The Inefficiency of Production Systems and its decomposition," CEPA Working Papers Series WP052019, School of Economics, University of Queensland, Australia.
    10. Zhong, Shen & Li, Junwei & Chen, Xi & Wen, Hongmei, 2022. "A multi-hierarchy meta-frontier approach for measuring green total factor productivity: An application of pig breeding in China," Socio-Economic Planning Sciences, Elsevier, vol. 81(C).
    11. Fukuyama, Hirofumi & Matousek, Roman, 2018. "Nerlovian revenue inefficiency in a bank production context: Evidence from Shinkin banks," European Journal of Operational Research, Elsevier, vol. 271(1), pages 317-330.
    12. Akther, Syed & Fukuyama, Hirofumi & Weber, William L., 2013. "Estimating two-stage network Slacks-based inefficiency: An application to Bangladesh banking," Omega, Elsevier, vol. 41(1), pages 88-96.
    13. David Hadley & Euan Fleming & Renato Villano, 2013. "Is Input Mix Inefficiency Neglected in Agriculture? A Case Study of Pig-based Farming Systems in England and Wales," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(2), pages 505-515, June.
    14. Boris Bravo-Ureta & Daniel Solís & Víctor Moreira López & José Maripani & Abdourahmane Thiam & Teodoro Rivas, 2007. "Technical efficiency in farming: a meta-regression analysis," Journal of Productivity Analysis, Springer, vol. 27(1), pages 57-72, February.
    15. Wanke, Peter F., 2013. "Physical infrastructure and shipment consolidation efficiency drivers in Brazilian ports: A two-stage network-DEA approach," Transport Policy, Elsevier, vol. 29(C), pages 145-153.
    16. Khalili-Damghani, Kaveh & Tavana, Madjid & Santos-Arteaga, Francisco J. & Mohtasham, Sima, 2015. "A dynamic multi-stage data envelopment analysis model with application to energy consumption in the cotton industry," Energy Economics, Elsevier, vol. 51(C), pages 320-328.
    17. Alves, André Bernardo & Wanke, Peter & Antunes, Jorge & Chen, Zhongfei, 2020. "Endogenous network efficiency, macroeconomy, and competition: Evidence from the Portuguese banking industry," The North American Journal of Economics and Finance, Elsevier, vol. 52(C).
    18. Gangyi Wang & Chang’e Zhao & Yuzhuo Shen & Ni Yin, 2021. "Estimation of cost efficiency of fattening pigs, sows, and piglets using SFA approach analysis: Evidence from China," PLOS ONE, Public Library of Science, vol. 16(12), pages 1-22, December.
    19. Lozano, Sebastián & Villa, Gabriel, 2016. "Data Envelopment Analysis of systems with multiple modes of functioning," MPRA Paper 76076, University Library of Munich, Germany.
    20. 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.

    More about this item

    Keywords

    Pig; DEA; Multi-activity; Dynamic network; Russell measure; C61; D24; Q12;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

    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:kap:jproda:v:38:y:2012:i:3:p:319-331. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.