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

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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)

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.

Suggested Citation

  • Lucyna BŁAŻEJCZYK-MAJKA & Radosław KALA, 2015. "On the combined estimation of technical efficiency and its application to agriculture," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 61(10), pages 441-449.
    • Handle: RePEc:caa:jnlage:v:61:y:2015:i:10:id:72-2014-agricecon
    DOI: 10.17221/72/2014-AGRICECON
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    Cited by:

    1. Aleksandra Marcikić Horvat & Bojan Matkovski & Stanislav Zekić & Boris Radovanov, 2020. "Technical efficiency of agriculture in Western Balkan countries undergoing the process of EU integration," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(2), pages 65-73.

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