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Multi-directional program efficiency: the case of Lithuanian family farms

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Listed:
  • Mette Asmild

    ()

  • Tomas Baležentis

    ()

  • Jens Hougaard

    ()

Abstract

The present paper analyses both managerial and program efficiencies of Lithuanian family farms, in the tradition of Charnes et al. (Manag Sci 27(6):668–697, 1981 ) but with the important difference that multi-directional efficiency analysis rather than the traditional data envelopment analysis approach is used to estimate efficiency. This enables a consideration of input-specific efficiencies. The study shows clear differences between the efficiency scores on the different inputs as well as between the farm types of crop, livestock and mixed farms respectively. We furthermore find that crop farms have the highest program efficiency, but the lowest managerial efficiency and that the mixed farms have the lowest program efficiency (yet not the highest managerial efficiency). Copyright Springer Science+Business Media New York 2016

Suggested Citation

  • Mette Asmild & Tomas Baležentis & Jens Hougaard, 2016. "Multi-directional program efficiency: the case of Lithuanian family farms," Journal of Productivity Analysis, Springer, vol. 45(1), pages 23-33, February.
  • Handle: RePEc:kap:jproda:v:45:y:2016:i:1:p:23-33
    DOI: 10.1007/s11123-014-0419-6
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    References listed on IDEAS

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    1. Peter Bogetoft & Jens Hougaard, 1999. "Efficiency Evaluations Based on Potential (Non-Proportional) Improvements," Journal of Productivity Analysis, Springer, vol. 12(3), pages 233-247, November.
    2. Mercedes Beltrán & Ernest Reig, 2014. "Comparing conventional and organic citrus grower efficiency in Spain," Working Papers 1406, Department of Applied Economics II, Universidad de Valencia.
    3. Leopold Simar & Valentin Zelenyuk, 2006. "On Testing Equality of Distributions of Technical Efficiency Scores," Econometric Reviews, Taylor & Francis Journals, vol. 25(4), pages 497-522.
    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. Asmild, Mette & Matthews, Kent, 2012. "Multi-directional efficiency analysis of efficiency patterns in Chinese banks 1997–2008," European Journal of Operational Research, Elsevier, vol. 219(2), pages 434-441.
    6. Gorton, Matthew & Davidova, Sophia, 2004. "Farm productivity and efficiency in the CEE applicant countries: a synthesis of results," Agricultural Economics, Blackwell, vol. 30(1), pages 1-16, January.
    7. Torben Holvad & Jens Hougaard & Dorte Kronborg & Hans Kvist, 2004. "Measuring inefficiency in the Norwegian bus industry using multi-directional efficiency analysis," Transportation, Springer, vol. 31(3), pages 349-369, August.
    8. 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.
    9. M-J Mancebón & J Calero & Á Choi & D P Ximénez-de-Embún, 2012. "The efficiency of public and publicly subsidized high schools in Spain: Evidence from PISA-2006," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 63(11), pages 1516-1533, November.
    10. Anonymous, 2012. "2012 Annual Agricultural Outlook," Staff Papers 120986, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    11. Nan Li & Hailin Mu & Huanan Li & Shusen Gui, 2012. "Diesel Consumption of Agriculture in China," Energies, MDPI, Open Access Journal, vol. 5(12), pages 1-24, December.
    12. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
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    14. Mette Asmild & Jens Hougaard & Dorte Kronborg & Hans Kvist, 2003. "Measuring Inefficiency Via Potential Improvements," Journal of Productivity Analysis, Springer, vol. 19(1), pages 59-76, January.
    15. Wollni, Meike & Brümmer, Bernhard, 2012. "Productive efficiency of specialty and conventional coffee farmers in Costa Rica: Accounting for technological heterogeneity and self-selection," Food Policy, Elsevier, vol. 37(1), pages 67-76.
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    Citations

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    Cited by:

    1. Kapelko, Magdalena & Oude Lansink, Alfons, 2017. "Dynamic multi-directional inefficiency analysis of European dairy manufacturing firms," European Journal of Operational Research, Elsevier, vol. 257(1), pages 338-344.
    2. repec:spr:cejnor:v:26:y:2018:i:1:d:10.1007_s10100-017-0473-z is not listed on IDEAS
    3. repec:kap:jproda:v:49:y:2018:i:1:d:10.1007_s11123-017-0519-1 is not listed on IDEAS
    4. repec:ana:journl:v:4:y:2018:i:1:p:21-38 is not listed on IDEAS
    5. Mette Asmild & Tomas Baležentis & Jens Leth Hougaard, 2016. "Multi-directional productivity change: MEA-Malmquist," Journal of Productivity Analysis, Springer, vol. 46(2), pages 109-119, December.

    More about this item

    Keywords

    Multi-directional efficiency analysis (MEA); Managerial efficiency; Program efficiency; Data envelopment analysis (DEA); Family farms; Lithuania; C430; C440; C610; Q100; Q120;

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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