Using data envelopment analysis for the efficiency and elasticity evaluation of agricultural farms

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" Using data envelopment analysis for the efficiency and elasticity evaluation of agricultural farms "
Atici, Kazim Baris

Document Type	:	Latin Dissertation
Record Number	:	830537
Doc. No	:	TLets572917
Main Entry	:	Atici, Kazim Baris
Title & Author	:	Using data envelopment analysis for the efficiency and elasticity evaluation of agricultural farms\ Atici, Kazim Baris
College	:	University of Warwick
Date	:	2012
student score	:	2012
Degree	:	Thesis (Ph.D.)
Abstract	:	Data Envelopment Analysis (DEA) is a well-established relative efficiency measurement technique, which has been widely applied to evaluate the technical efficiency of agricultural units in different countries by focusing on different aspects of agricultural production. This research deals with the evaluation of efficiency through DEA in non-homogeneous agricultural production, where units produce a wide range of different outputs. The objectives are threefold. Firstly, we propose a novel methodological approach of integrating the production trade-offs concept of DEA into non-homogeneous agricultural efficiency evaluation to prevent the overstatement of the efficiency of specialist farms and overcome the issue of insufficient discrimination due to large number of outputs in the models. Secondly, we aim to integrate this methodological perspective to the theory of elasticity measurement on DEA frontiers. The efficient frontiers of DEA are not defined in functional forms as in the classical economic theory, therefore obtaining elasticity measures on them require different considerations. We introduce the production trade-offs to the elasticity measurement and derive the necessary models to calculate the elasticities of response in the presence of production trade-offs. As a third objective, before moving to the introduction of the trade-offs in elasticity measurement, for theoretical completeness, we first consider the elasticity measurement on DEA frontiers of constant returns-to-scale (CRS) technologies. Our proposed methodology and all the developed elasticity theory are illustrated in a real world case of Turkish agricultural sectors. We provide extensive empirical applications covering all the proposed theory and methodology. Among the results of this research, we provide an elasticity measurement framework, which enables us to calculate elasticities of response measures in both VRS and CRS technologies, with or without production tradeoffs included. We observe that the integration of production trade-offs provide better discrimination of efficiency scores compared to the models without trade-offs included. We also investigate how changing production trade-offs affect the efficiency and elasticity measures of the evaluated units.
Subject	:	HA Statistics ; HB Economic Theory ; S Agriculture (General)
Added Entry	:	University of Warwick