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A comparative efficiency analysis of wheat farms using parametric and nonparametric methods

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  • Mo, Lijia

Abstract

This study examined whether the efficiency measures were invariant to choice of parametric and nonparametric methods for a sample of 183 wheat farms. The efficiency measures from the deterministic parametric method were smaller than those from the deterministic method. There was a trade-off between scale efficiency and economic efficiency. In the deterministic nonparametric method, the economic efficiency, scale efficiency and overall efficiency results were invariant to the number of inputs or the dimensionality. Only allocative and pure technical efficiency measures depended on the dimensionality. This work illustrated the importance of holding curvature for the cost function in stochastic frontier results.

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  • Mo, Lijia, 2009. "A comparative efficiency analysis of wheat farms using parametric and nonparametric methods," 2010 Annual Meeting, February 6-9, 2010, Orlando, Florida 56427, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea10:56427
    DOI: 10.22004/ag.econ.56427
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    References listed on IDEAS

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    1. repec:ags:joaaec:v:29:y:1997:i:1:p:175-84 is not listed on IDEAS
    2. Boris Bravo-Ureta & Daniel Solís & Víctor Moreira López & José Maripani & Abdourahmane Thiam & Teodoro Rivas, 2007. "Technical efficiency in farming: a meta-regression analysis," Journal of Productivity Analysis, Springer, vol. 27(1), pages 57-72, February.
    3. Abdul Wadud & Ben White, 2000. "Farm household efficiency in Bangladesh: a comparison of stochastic frontier and DEA methods," Applied Economics, Taylor & Francis Journals, vol. 32(13), pages 1665-1673.
    4. Featherstone, Allen M. & Langemeier, Michael R. & Ismet, Mohammad, 1997. "A Nonparametric Analysis of Efficiency for a Sample of Kansas Beef Cow Farms," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 29(1), pages 175-184, July.
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    Cited by:

    1. Madau, Fabio A., 2011. "Parametric Estimation of Technical and Scale Efficiencies in Italian Citrus Farming," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 12(1).

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