A comparison of DEA and SFA methods: a case study of farm households in Bangladesh

Alexandros M. Theodoridis and Md. Mazharul Anwar ()
Additional contact information
Md. Mazharul Anwar: Aristotle University of Thessaloniki, Greece

Journal of Developing Areas, 2011, vol. 45, issue 1, 95-110

Abstract: Non-parametric Data Envelopment Analysis (DEA) and parametric Stochastic Frontier Analysis (SFA) have become very popular in the analysis of productive efficiency. This study undertakes a comparison of the SFA and the constant returns to scale (CRS) and variable returns to scale (VRS) output-oriented DEA models, based on a sample of 240 farms in Bangladesh. However, the aim of this paper is not only to compare estimates of technical efficiency obtained from the two approaches, but also to examine the determinants of inefficiency. The detection and measurement of technical inefficiency and its determinants can be used as a basis of policy recommendations. The results from both the approaches indicated that there is a potential for increasing farm production through efficiency improvement and that farmers' age and educational level have a significant effect on efficiency.

Keywords: Stochastic Frontier Analysis; Data Envelopment Analysis; Technical Efficiency; Determinants of Inefficiency; Farm Households (search for similar items in EconPapers)
JEL-codes: D24 Q12 Q18 (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
http://muse.jhu.edu/journals/journal_of_developing ... /45.theodoridis.html

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:jda:journl:vol.45:year:2011:issue1:pp:95-110

Access Statistics for this article

More articles in Journal of Developing Areas from Tennessee State University, College of Business Contact information at EDIRC.
Bibliographic data for series maintained by Abu N.M. Wahid ().