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

Lucyna Błażejczyk-Majka and Radosław Kala
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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

Agricultural Economics, 2015, vol. 61, issue 10, 441-449

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.

Keywords: data envelopment analysis; elasticity; frontier production function; regression (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:caa:jnlage:v:61:y:2015:i:10:id:72-2014-agricecon

DOI: 10.17221/72/2014-AGRICECON

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