Application of Bounded Data Envelopment Analysis to Evaluate Efficiency of Broiler Firms (Case study: South Khorasan Province)

مجله اقتصاد و توسعه کشاورزی

Article 5, Volume 28, Issue 1, April 2014, Pages 45-54   

Document Type: Research Article

DOI: 10.22067/jead2.v1391i6.30111

Authors

H. Balali^* ; S.M.J. Esfahani

Agriculture Economics, Bu-ali Sina University

Abstract

Analyzing efficiency in each economic sector to adopt policies for optimal use of production factors and avoid wasting resources is important. In this study, in order to have a more comprehensive evaluation of the performance of each unit, efficiency of broiler firms was measured using bounded data envelopment analysis which determines position of each unit relative to efficient and inefficient frontiers.Considering the number of inputs and outputs of broiler firms to ensure reliability of data analysis envelopment, the required data were randomely selected from 30 active broiler firms in South Khorasan province. and their efficiency was analyzed using GAMS and SPSS17 software. The results of the study showed that the average efficiency of broiler firms based on input oriented method was 0/833 and more than 56 percent of the boiler firms were below the average of efficiency. Average efficiency of broiler firms in optimistic and pessimistic approaches based on output-oriented method were 1/225 and 0/861, respectively. The results of interval efficiency showed that 50 percent of the broiler firms were between efficient and inefficient frontier. The results confirm that as an increase in efficiency, production can be increased without using more resources. It is therefore suggested that identifying inefficient broiler firms, investigating the causes of the inefficiencies and modeling of efficient broiler firms, can be an effective step toward increasing efficiency

Keywords

Efficient and inefficient frontier; Broiler Firms; Bounded data envelopment analyze; South Khorasan Province