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Input Disposability and Efficiency in Dutch Arable Farming

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  • Guan Zhengfei
  • Alfons Oude Lansink

Abstract

This paper develops a test for disposability of individual inputs based on non‐radial efficiency measures. Furthermore, the paper analyses the impact of congestion on overall technical efficiency for individual inputs. The application uses panel data from Dutch cash crop farms over the period 1989–1992. A significant difference between the efficiency measures under different assumptions on input disposability is detected by a t‐test, indicating that all inputs are weakly disposable. Analysis of the composition of overall technical efficiency reveals that weak disposability constitutes the largest component of inefficiency. Moreover, congested farms on average have a less effective management and operate on a larger, though less efficient, production scale.

Suggested Citation

  • Guan Zhengfei & Alfons Oude Lansink, 2003. "Input Disposability and Efficiency in Dutch Arable Farming," Journal of Agricultural Economics, Wiley Blackwell, vol. 54(3), pages 467-478, November.
    • Handle: RePEc:bla:jageco:v:54:y:2003:i:3:p:467-478
    DOI: 10.1111/j.1477-9552.2003.tb00072.x
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    References listed on IDEAS

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    1. Dervaux, Benoît & Kerstens, Kristiaan & Vanden Eeckaut, Philippe, 1998. "Radial and nonradial static efficiency decompositions: a focus on congestion measurement," Transportation Research Part B: Methodological, Elsevier, vol. 32(5), pages 299-312, June.
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    Cited by:

    1. Kassoum Ayouba, 2016. "On the estimation of damage reducing functions," Economics Bulletin, AccessEcon, vol. 36(4), pages 2394-2404.
    2. Dong, Zefeng & Guan, Zhengfei & Grogan, Kelly A. & Skevas, Theodoros, 2015. "Energy and Environmental Efficiency of Greenhouse Growers in Michigan," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196840, Southern Agricultural Economics Association.
    3. Musshoff, Oliver & Hirschauer, Norbert & Herink, Michael, 2009. "Bei welchen Problemstrukturen sind Data-Envelopment-Analysen sinnvoll? Eine kritische Würdigung," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 58(02), pages 1-11, February.
    4. Gary Ferrier & Michael Rosko & Vivian Valdmanis, 2006. "Analysis of uncompensated hospital care using a DEA model of output congestion," Health Care Management Science, Springer, vol. 9(2), pages 181-188, May.
    5. Walter Briec & Kristiaan Kerstens & Ignace Van de Woestyne, 2016. "Congestion in production correspondences," Journal of Economics, Springer, vol. 119(1), pages 65-90, September.
    6. Watkins, K. Bradley & Henry, Chris G. & Hardke, Jarrod T. & Mane, Ranjitsinh U. & Mazzanti, Ralph & Baker, Ron, 2021. "Non-radial technical efficiency measurement of irrigation water relative to other inputs used in Arkansas rice production," Agricultural Water Management, Elsevier, vol. 244(C).

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