scholarly journals Estimation of technical efficiency of cattle feedlot system in Adamawa State, Nigeria: Comparison among estimators

2020 ◽  
Vol 12 (1) ◽  
pp. 24-30
Author(s):  
B.H. Gabdo ◽  
M.R. Ja’afar-Furo ◽  
M.Y. Hamid ◽  
Y.A. Thlaffa

Abstract. This study adopts an output oriented Shephard Distance Function (SDF) to estimate Technical Efficiency (TE) in cattle feedlot under five distinct estimators (Data Envelopment Analysis /DEA/, Free Disposal Hull /FDH/, Order-m, Order-α and Bootstrap). The aim is to rank the efficiency estimates based on descending order of the TE estimates from the five estimators and test the hypotheses of mean difference across the estimators. In addition, the independent variables used in the feedlot system were also ranked based on magnitude to total cost. Results show initial cost of animal, feed cost, water cost, labour cost, depreciation, medicaments and cost of salt lick are ranked 1st, 2nd, 3rd, 4th, 5th, 6th and 7th, respectively, in terms of proportion to total cost. The study found a combination of inappropriate scale of production and managerial problems as the causes of inefficiency in the cattle feedlot. The study advocates for proper pricing of inputs, commensurate and timely utilization of inputs to avert input waste. Similarly, the study recommends up-scaling (178 cattle feedlot) and down-scaling (92 cattle feedlot) the cattle feedlot production owing to their operation at increasing and decreasing returns to scale, respectively, to attain enhanced efficiency.

2018 ◽  
Vol 2 (1) ◽  
pp. 43 ◽  
Author(s):  
Alexandra Maria Rios Cabral ◽  
Francisco S. Ramos

Aim: This study aims to evaluate the technical efficiency of 44 Brazilian port terminals that handled containers in 2016. The evaluation will first proceed by identifying the main benchmarks. It will then provide an analysis of variables that may have an effect on technical efficiency as well as the nature of their relationship with the latter--namely: container movement and specialized terminals. Design / Research methods: In this work we apply the techniques of Data Envelopment Analysis and Free Disposal Hull. Output-oriented models were constructed, using three inputs - berth depth, berth length and number of berths, and three outputs - number of containers handled, medium board measured in container handled per hour of mooring, and medium consignment rate measured in container throughput per ship. Conclusions / findings: The main results show that half of the terminals have an inefficient infrastructure, with capacity larger than necessary to meet current demand for transportation of containers. In addition, there is a strong relationship between the efficiency and size of a terminal port and between the efficiency and degree of specialization. Moreover, the private use terminal of (TUP) Itacal and public quay OCRIM can serve as benchmarks for most of the terminals. Originality / value of the article: Relatively few works in the literature tried to measure technical efficiency for developing countries. Besides that, none of the works found regarding Brazilian ports have shown the scenario after promulgation of the Port’s Law in 2013, and only a few used container cargo as focus. This article is of interest for scientists of the sector, exporters/importers, and Brazilian Government officers interested in observing the effects of public policies aimed at the sector. We also suggest future work concerning the sector's improvements which can follow from our findings. 


2011 ◽  
Vol 43 (4) ◽  
pp. 515-528 ◽  
Author(s):  
Amin W. Mugera ◽  
Michael R. Langemeier

In this article, we used bootstrap data envelopment analysis techniques to examine technical and scale efficiency scores for a balanced panel of 564 farms in Kansas for the period 1993–2007. The production technology is estimated under three different assumptions of returns to scale and the results are compared. Technical and scale efficiency is disaggregated by farm size and specialization. Our results suggest that farms are both scale and technically inefficient. On average, technical efficiency has deteriorated over the sample period. Technical efficiency varies directly by farm size and the differences are significant. Differences across farm specializations are not significant.


2019 ◽  
Vol 23 (03) ◽  
pp. 1950025 ◽  
Author(s):  
WOJCIECH NASIEROWSKI

This paper presents the results of a comparison of the technical efficiency of innovation approach in Canada to approaches in 41 other countries. Data Envelopment Analysis was used to investigate this subject. Results of simulation experiments were used to anticipate possible general suggestions regarding policy measures that may be considered when exploring means to improve Canadian performance. Data from the World Competitiveness Yearbook and European Innovation Scoreboard were used. Oslo Manual definition of innovations was used. Enablers (context) — difficult to change country characteristics that may impact upon technical efficiency — were entered into the examination. A qualitative overview of the Canadian perspective to innovations supplements the quantitative portion of the presentation. It is observed that return to scale and congestion issues dominate considerations on technical efficiency of innovations. Wealthier countries seem to be less technically efficient in innovations than not so rich ones. Canada operates under Decreasing Returns to Scale. Congestions seem to be the main contributor to inefficiencies. Suggestions regarding the betterment of technical efficiency of innovations in Canada are presented here. Attention was drawn to several questions for further studies on the subject and their importance clarified.


2014 ◽  
Vol 31 (2) ◽  
pp. 394-422 ◽  
Author(s):  
Alois Kneip ◽  
Léopold Simar ◽  
Paul W. Wilson

Data envelopment analysis (DEA) and free disposal hull (FDH) estimators are widely used to estimate efficiencies of production units. In applications, both efficiency scores for individual units as well as average efficiency scores are typically reported. While several bootstrap methods have been developed for making inference about the efficiencies of individual units, until now no methods have existed for making inference about mean efficiency levels. This paper shows that standard central limit theorems do not apply in the case of means of DEA or FDH efficiency scores due to the bias of the individual scores, which is of larger order than either the variance or covariances among individual scores. The main difficulty comes from the fact that such statistics depend on efficiency estimators evaluated at random points. Here, new central limit theorems are developed for means of DEA and FDH scores, and their efficacy for inference about mean efficiency levels is examined via Monte Carlo experiments.


2014 ◽  
Vol 31 (01) ◽  
pp. 1450010 ◽  
Author(s):  
KRISTIAAN KERSTENS ◽  
IGNACE VAN DE WOESTYNE

This note first succinctly summarizes the currently available methods to solve the various nonconvex free disposal hull (FDH) models for technical efficiency as well as for minimum costs. It also offers some empirical illustration as to their computational efficiency. Second, this note briefly points out that the recent article by (26) and its correction by (4) proposing an extended enumeration method to solve for technical efficiency evaluated relative to this family of FDH models contain no original results.


Author(s):  
V. Prakash ◽  
J. Rajesh ◽  
M. Thilagam

Data envelopment analysis (DEA) is a method of analyzing the relative efficiency of similar types of organizations known as decision making units (DMU’s). In this paper, DEA model is applied to evaluate the relative technical efficiency of state road transport undertakings (SRTU’s) in India during the period 2011-2012. The authors have considered thirty-four SRTU’s functioning in India. The variables chosen to characteristic production units are the number of fleet held, staff strength and fuel efficiency as inputs and Passengers carried as output. The BCC model is input- oriented allowing for variable returns to scale (VRS), units are ranked and the projection analyses are given.


2017 ◽  
Vol 37 (332) ◽  
pp. 10-19 ◽  
Author(s):  
Eligijus Laurinavičius ◽  
Daiva Rimkuvienė

Abstract Production economics forms a very important part of an enormous range of economic theory. Agricultural production is no exception. When evaluating the competitiveness of the multifunctional agriculture, it is necessary to use the measure of efficiency instead of productivity. The conception of the efficiency is explained and the methods for measurement are provided. The authors discuss the methods of Stochastic Frontier Approach (SFA), Free Disposal Hull (FDH) and Data Envelopment Analysis (DEA) that are particularly useful for multi-criterial evaluation of multifunctional processes. Those methods assign an efficiency score to each Decision Making Unit (DMU) based on how well it transforms a given set of inputs into outputs. Most studies have only focused on application of DEA method for assesment of the efficiency of agriculture farms. There is still a need on applications for sectors. This paper provides an examination of the applicability of DEA method to agriculture sectors efficiency measurement. By applying mathematical models, which are based on the DEA, the efficiency of agriculture in each EU country was evaluated.


Author(s):  
Mini Kundi ◽  
Seema Sharma

Purpose The purpose of the present study is to evaluate the efficiency of glass firms in India. Design/methodology/approach Data envelopment analysis (DEA) has been employed to study the technical, scale and super efficiency measures of glass firms in India. Findings Major findings of DEA analysis show that 65 percent firms are found to be technically efficient. Returns to scale analysis indicate that five firms are operating at decreasing returns to scale and two firms are exhibiting increasing returns to scale. Further, results show that small– and medium–scale firms are more efficient than large–scale firms. Old firms are more efficient compared to the young firms and foreign-owned firms are technically more efficient compared to the domestic firms. Practical implications The results of this study would help the managers to assess their relative efficiency and take corrective measures to efficiently use their resources. Originality/value This seems to be the first study to apply DEA to analyze the efficiency of glass firms in India. No previous study on glass industry seems to have decomposed the measure of overall technical efficiency into its components, namely pure technical efficiency and scale efficiency and no study seems to have examined whether ownership, age and size of a firm are significant for its efficiency. In addition, no earlier study seems to have ranked the glass firms based on their efficiency values. Further, target values of inputs and outputs are demonstrated in this study. Stability of efficiency scores is also checked.


Sign in / Sign up

Export Citation Format

Share Document