Farm household efficiency in Bangladesh: a comparison of stochastic frontier and DEA methods

Abdul Wadud · Ben White

394 citations0/0 files storedApplied Economics

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Efficiency Analysis Using DEA Agricultural economics and policies Agricultural Economics and Practices

Abstract

This study compares estimates of technical efficiency obtained from the stochastic frontier approach and the Data Envelopment Analysis (DEA) approach using farm-level survey data for rice farmers in Bangladesh. Technical inefficiency effects are modelled as a function of farm-specific socioeconomic factors, environmental factors and irrigation infrastructure. The results from both the approaches indicate that efficiency is significantly influenced by the factors measuring environmental degradation and irrigation infrastructure.

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References

1978Measuring the efficiency of decision making units 1957The Measurement of Productive Efficiency 1977Formulation and estimation of stochastic frontier production function models 1977Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error 1984Estimating most productive scale size using data envelopment analysis 1980A survey of frontier production functions and of their relationship to efficiency measurement 1995RECENT DEVELOPMENTS IN FRONTIER MODELLING AND EFFICIENCY MEASUREMENT 1990Recent developments in the econometric estimation of frontiers

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