Technical, Allocative, Cost and Scale Efficiencies in Bangladesh Rice Cultivation: A Non‐parametric Approach

Abstract

Applying programming techniques to detailed data for 406 rice farms in 21 villages, for 1997, produces inefficiency measures, which differ substantially from the results of simple yield and unit cost measures. For the Boro (dry) season, mean technical efficiency was 69.4 per cent, allocative efficiency was 81.3 per cent, cost efficiency was 56.2 per cent and scale efficiency 94.9 per cent. The Aman (wet) season results are similar, but a few points lower. Allocative inefficiency is due to overuse of labour, suggesting population pressure, and of fertiliser, where recommended rates may warrant revision. Second-stage regressions show that large families are more inefficient, whereas farmers with better access to input markets, and those who do less off-farm work, tend to be more efficient. The information on the sources of inter-farm performance differentials could be used by the extension agents to help inefficient farmers. There is little excuse for such sub-optimal use of survey data, which are often collected at substantial costs.

Determinants of tomato farmers efficiency in Mymensingh district of Bangladesh: Data Envelopment Analysis approach

“…Other factors like experience, family size and extension service were insignificant. Alam (2011) and Coelli et al (2002) also found the insignificant relation between experience and efficiency.…”

Bank efficiency, productivity, and convergence in EU countries: a weighted Russell directional distance model

“…As stated by Coelli et al (2002), cost efficiency and allocative efficiency can be estimated by DEA. 5 The cost efficiency evaluates how much total input costs can be decreased without decreasing output.…”

Technical Efficiency in a Vegetable Based Mixed-Cropping Sector in Tugela Ferry, Msinga District, Kwazulu-Natal

“…Tauer and Hanchar's (1995) Monte Carlo simulations suggest that measures of efficiency are more sensitive to changes in the number of products and inputs than to changes in the number of observations. Finally, Coelli et al (2002) showed that many firms could spuriously appear on the DEA frontier when the sample is small and there are many inputs.…”

“…Finally, the SPF approach is suited only for single-output technologies. A multi-output case can only be studied if the various outputs can be aggregated into a single aggregate output (Coelli et al, 2002).…”