Bootstrapping decomposed allocative efficiency with farmer's on and off farm choice

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Abstract

The reliance of farm households on non-farm income is a growing area of research but the relationship between multiple household income sources and the efficient use of family resources has rarely been examined. The main objective of the paper is to contribute to the research stream on the method in Data Envelopment Analysis (DEA) and efficiency measurement. Using 2004 data from Ireland, the paper develops a new framework to decompose allocative efficiency and bootstrap it for all household labour allocations. We also use similar techniques to calculate measures for household technical and scale efficiency. In addition, we bootstrap DEA efficiency measures and regression models simultaneously to remove the effects of dependence among DEA results on the regression estimation. We go on to analyze the determinants of household technical, allocative and scale efficiency.

Original languageEnglish
JournalEconomic Computation and Economic Cybernetics Studies and Research
Volume47
Issue number2
Publication statusPublished - 2013

Keywords

  • Allocative efficiency
  • Bootstrap
  • Choice
  • DEA
  • Farm household efficiency

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