Efficiency measurements in multi‐activity data envelopment analysis with shared inputs

Po‐Chi Chen, Shih‐Hsun Hsu, Ching‐Cheng Chang and Ming‐Miin Yu

China Agricultural Economic Review, 2013, vol. 5, issue 1, 24-42

Abstract: Purpose - The paper aims to propose a modified multi‐activity data envelopment analysis (MDEA) to provide information on the efficiency performance of farmers' cooperatives with inputs shared among several closely‐related activities. Design/methodology/approach - The directional distance functions are used to construct a non‐radial measure of performance in which the optimal input/output adjustment and the optimal allocation of shared inputs is simultaneously taken into consideration. The model is applied to study the case of 201 farmers' cooperatives in Taiwan. Findings - The empirical results suggest that there exist significant discrepancy in terms of the performance among the four departments of the farmers' cooperatives. Furthermore, the wide discrepancy in the returns to scale warrant further deregulations by easing restrictions on their consolidation with other cooperatives to operate over broader geographical areas. Originality/value - An empirical study on Taiwan's farmers' cooperatives is used to demonstrate its applicability and how they can effectively allocate their fixed resources in a multi‐activity environment. Such a measure can be used for rewarding the individual groups of an organization based on their relative contributions to the overall performance.

Keywords: Multi‐activity DEA; Shared inputs; Efficiency measure; Taiwan; Agriculture (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:caerpp:v:5:y:2013:i:1:p:24-42

DOI: 10.1108/17561371311294748

Access Statistics for this article

China Agricultural Economic Review is currently edited by Dr Fu Qin, Dr Jikun Huang, Dr Kevin Z Chen, Dr Weiming Tian, Prof Daniel Sumner, Prof Xian Xin and Prof Holly Wang

More articles in China Agricultural Economic Review from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().