Non-Parametric Analysis of Technical Efficiency: Factors Affecting Efficiency of West Java Rice Farms

Brázdik, František

doi:10.2139/ssrn.1148203

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Non-Parametric Analysis of Technical Efficiency: Factors Affecting Efficiency of West Java Rice Farms

CERGE-EI Working Paper Series No. 286

50 Pages Posted: 25 Jun 2008

See all articles by František Brázdik

František Brázdik

Czech National Bank; Charles University in Prague - CERGE-EI, a joint workplace of Charles University and the Economics Institute of the Czech Academy of Sciences

Date Written: January 2006

Abstract

The objectives of this analysis are to evaluate the technical and scale efficiency of rice farms in West Java and to identify determinants affecting farms' efficiency. Further, the farm size-productivity relation is investigated. Data Envelopment Analysis is used to estimate technical efficiency scores. Additionally, Tobit regression is used to explain the variation in the efficiency scores related to farm-specific factors. I conclude that farm size is one of the most important factors of farms' technical efficiency and that high land fragmentation was the main source of the technical inefficiency during the final period of the intensification era, known as the Green Revolution.

Keywords: rice farms, data envelopment analysis

JEL Classification: C23, C50, N55, O38, Q11, Q15

Suggested Citation: Suggested Citation

Brázdik, František, Non-Parametric Analysis of Technical Efficiency: Factors Affecting Efficiency of West Java Rice Farms (January 2006). CERGE-EI Working Paper Series No. 286, Available at SSRN: https://ssrn.com/abstract=1148203 or http://dx.doi.org/10.2139/ssrn.1148203