IDEAS home Printed from https://ideas.repec.org/a/jda/journl/vol.45year2011issue1pp95-110.html
   My bibliography  Save this article

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

Author

Listed:
  • Alexandros M. Theodoridis
  • Md. Mazharul Anwar

    (Aristotle University of Thessaloniki, Greece)

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.

Suggested Citation

  • Alexandros M. Theodoridis & Md. Mazharul Anwar, 2011. "A comparison of DEA and SFA methods: a case study of farm households in Bangladesh," Journal of Developing Areas, Tennessee State University, College of Business, vol. 45(1), pages 95-110, July-Dece.
    • Handle: RePEc:jda:journl:vol.45:year:2011:issue1:pp:95-110
    as

    Download full text from publisher

    File URL: http://muse.jhu.edu/journals/journal_of_developing_areas/v045/45.theodoridis.html
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mulugeta Y. Birhanu & Tesfahun Alemayehu & Jasmine E. Bruno & Fasil Getachew Kebede & Emmanuel Babafunso Sonaiya & Ezekiel H. Goromela & Oladeji Bamidele & Tadelle Dessie, 2021. "Technical Efficiency of Traditional Village Chicken Production in Africa: Entry Points for Sustainable Transformation and Improved Livelihood," Sustainability, MDPI, vol. 13(15), pages 1-21, July.
    2. Muhammad Aamir, Shahzad & Waqar, Akram & Muhammad, Khan, 2016. "Technical Efficiency Analysis of Wheat Farms in the Punjab, Pakistan: DEA Approach," MPRA Paper 81846, University Library of Munich, Germany, revised 01 Oct 2017.
    3. Tri Haryanto & Basri Talib & Norlida Salleh, 2015. "An Analysis of Technical Efficiency Variation in Indonesian Rice Farming," Journal of Agricultural Science, Canadian Center of Science and Education, vol. 7(9), pages 144-144, August.
    4. Blend Frangu & Jennie Sheerin Popp & Michael Thomsen & Arben Musliu, 2018. "Evaluating Greenhouse Tomato and Pepper Input Efficiency Use in Kosovo," Sustainability, MDPI, vol. 10(8), pages 1-14, August.
    5. Tanko, Mohammed & Ismaila, Salifu, 2021. "How culture and religion influence the agriculture technology gap in Northern Ghana," World Development Perspectives, Elsevier, vol. 22(C).
    6. Gianluca Bortoletto & Donata Favaro, 2019. "Healthcare efficiency across European countries during the recent economic crisis," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2019(2), pages 9-38.
    7. Guha, Pradyut & Mandal, Raju, 2021. "Technical Inefficiency of Maize Farming and Its Determinants in Different Agro-Climatic Regions of Sikkim, India," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 0(Number 2), June.
    8. María E. Pérez-Pons & Marta Plaza-Hernández & Ricardo S. Alonso & Javier Parra-Domínguez & Javier Prieto, 2020. "Increasing Profitability and Monitoring Environmental Performance: A Case Study in the Agri-Food Industry through an Edge-IoT Platform," Sustainability, MDPI, vol. 13(1), pages 1-16, December.
    9. Stéphane Korsaga, 2018. "Land Tenure Security, Land-Related Investments and Agricultural Performance in Sub-Saharan Africa: Efficiency or Equity? A Microeconomic Analysis Applied to the Case of Burkina Faso," Working Papers halshs-01699118, HAL.
    10. Muhammad Dimyati & Adhi Indra Hermanu, 2023. "Evaluating Research Efficiency in Indonesian Higher Education Institution," Evaluation Review, , vol. 47(2), pages 155-181, April.
    11. Sengphachan Khounthikoumane & Jae Bong Chang & Yoonsuk Lee, 2021. "Profit Efficiency of Rice Farms in Wet-Season Lowlands in Champhone District, Savannakhet Province, Lao PDR," Agriculture, MDPI, vol. 11(7), pages 1-10, July.
    12. Anirban Nandy & Piyush Kumar Singh & Alok Kumar Singh, 2021. "Systematic Review and Meta- regression Analysis of Technical Efficiency of Agricultural Production Systems," Global Business Review, International Management Institute, vol. 22(2), pages 396-421, April.
    13. Ana Pérez-González & Pablo Carlos & Elisa Alén, 2022. "An analysis of the efficiency of football clubs in the Spanish First Division through a two-stage relational network DEA model: a simulation study," Operational Research, Springer, vol. 22(3), pages 3089-3112, July.
    14. Rita, Rui & Marques, Vitor & Bárbara, Diogo & Chaves, Inês & Macedo, Pedro & Moutinho, Victor & Pereira, Mariana, 2023. "Crossing non-parametric and parametric techniques for measuring the efficiency: Evidence from 65 European electricity Distribution System Operators," Energy, Elsevier, vol. 283(C).

    More about this item

    Keywords

    Stochastic Frontier Analysis; Data Envelopment Analysis; Technical Efficiency; Determinants of Inefficiency; Farm Households;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jda:journl:vol.45:year:2011:issue1:pp:95-110. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Abu N.M. Wahid (email available below). General contact details of provider: https://edirc.repec.org/data/cbtnsus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.