Measuring Technical Efficiency of Dairy Farms with Imprecise Data: A Fuzzy Data Envelopment Analysis Approach

Amin Mugera ()

No 103251, 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania from Agricultural and Applied Economics Association

Abstract: This article integrates fuzzy set theory in Data Envelopment Analysis (DEA) framework to compute technical efficiency scores when input and output data are imprecise. The underlying assumption in convectional DEA is that inputs and outputs data are measured with precision. However, production agriculture takes place in an uncertain environment and, in some situations, input and output data may be imprecise. We present an approach of measuring efficiency when data is known to lie within specified intervals and empirically illustrate this approach using a group of 34 dairy producers in Pennsylvania. Compared to the convectional DEA scores that are point estimates, the computed fuzzy efficiency scores allow the decision maker to trace the performance of a decision-making unit at different possibility levels.

Keywords: Farm Management; Production Economics; Productivity Analysis; Research Methods/ Statistical Methods; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 30
Date: 2011
New Economics Papers: this item is included in nep-agr, nep-cse, nep-ecm and nep-eff
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Related works:
Journal Article: Measuring Technical Efficiency of Dairy Farms with Imprecise Data: A Fuzzy Data Envelopment Analysis Approach (2013)
Journal Article: Measuring technical efficiency of dairy farms with imprecise data: a fuzzy data envelopment analysis approach (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea11:103251

DOI: 10.22004/ag.econ.103251

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