Skip to main content
SpringerLink
Log in

Productive Efficiency of the Swine Industry in Hawaii: Stochastic Frontier vs. Data Envelopment Analysis

  • Published:
Journal of Productivity Analysis Aims and scope Submit manuscript

Abstract

Improving productive efficiency is an increasingly important determinant of the future of the swine industry in Hawaii. This paper examines the productive efficiency of a sample of swine producers in Hawaii by estimating a stochastic frontier production function and the constant returns to scale (CRS) and variable returns to scale (VRS) output-oriented DEA models. The technical efficiency estimates obtained from the two frontier techniques are compared. The scale properties are also examined under the two approaches. The industry's potential for increasing production through improved efficiency is also discussed.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Aigner, D., C.A.K. Lovell, and P. Schmidt. (1977). “Formulation and Estimation of Stochastic Frontier Production Function Models.” Journal of Econometrics 6, 21–37.

    Google Scholar 

  • Ali, A.I. and L.M. Seiford. (1993). “The Mathematical Programming Approach to Efficiency.” In H.O. Fried, C.A.K. Lovell, and S.S. Schmidt (eds.), The Measurement of Productive Efficiency: Techniques and Applications. Oxford University Press.

  • Banker, R.D., R.F. Conrad, and R.P. Strauss. (1986). “A Comparative Application of Data Envelopment Analysis and Translog Methods: An Illustration of Hospital Production.” Management Science 32, 30–44.

    Google Scholar 

  • Banker, R.D. (1984). “Estimating Most Productive Scale Size Using Data Envelopment Analysis.” European Journal of Operation Research 17, 35–44.

    Google Scholar 

  • Banker, R.D. and R.M. Thrall. (1992). “Estimation of Returns to Scale Using Data Envelopment Analysis.” European Journal of Operation Research 62, 74–84.

    Google Scholar 

  • Battese, G.E. (1992). “Frontier Production Functions and Technical Efficiency: A Survey of Empirical Applications in Agricultural Economics.” Agricultural Economics 7, 185–208.

    Google Scholar 

  • Battese, G.E. and T.J. Coelli. (1988). “Prediction of Firm-level Technical Efficiencies with a Generalized Frontier Production Function and Panel Data.” Journal of Econometrics 38, 387–399.

    Google Scholar 

  • Battese, G.E. and T.J. Coelli. (1995). “A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data.” Empirical Economics 20, 325–332.

    Google Scholar 

  • Bauer, P.W. (1990). “Recent Developments in the Econometric Estimation of Frontiers.” Journal of Econometrics 46, 39–56.

    Google Scholar 

  • Bjurek, H., L. Hjalmarsson, and F.R. Førsund. (1990). “Deterministic Parametric and Nonparametric Estimation in Service Production.” Journal of Econometrics 46, 213–227.

    Google Scholar 

  • Bowlin, W.F., A. Charnes, W.W. Cooper, and H.D. Sherman. (1985). “Data Envelopment Analysis and Regression Methods to Efficiency Estimation and Evaluation.” Annals of Operations Research 2, 113–138.

    Google Scholar 

  • Bravo-Ureta, B.E. and A.E. Pinheiro. (1993). “Efficiency Analysis of Developing Country Agriculture: A Review of Frontier Function.” Agricultural and Resource Economics Review 22, 88–101.

    Google Scholar 

  • Charnes, A., W.W. Cooper, and E. Rhodes. (1978). “Measuring the Efficiency of Decision Making Units.” European Journal of Operation Research 2, 429–444.

    Google Scholar 

  • Charnes, A., W.W. Cooper, D. Divine, T.W. Ruefli, and D. Thomas. (1989). “Comparisons of DEA and Existing Ratio and Regression Systems for Effecting Efficiency Evaluations of Regulated Electric Cooperatives in Texas.” Research in Governmental and Nonprofit Accounting 5, 187–210.

    Google Scholar 

  • Coelli, T.J. (1995). “Recent Developments in Frontier Modeling and Efficiency Measurement.” Australian Journal of Agricultural Economics 39, 219–245.

    Google Scholar 

  • Coelli, T.J. (1994). “A Guide to FRONTIER Version 4.1: A Computer Program for Stochastic Frontier Production and Cost Function Estimation.” Department of Econometrics, University of New England, Armidale, Australia.

    Google Scholar 

  • Farrell, M.J. (1957). “The Measurement of Productive Efficiency.” Journal of the Royal Statistical Society Series A, 120, Part 3, 253–281.

    Google Scholar 

  • Favero, C.A. and L. Papi. (1995). “Technical Efficiency and Scale Efficacy in the Italian Banking Sector: A Non-parametric Approach.” Applied Economics 27, 385–395.

    Google Scholar 

  • Ferrier, G.D. and C.A.K. Lovell (1990). “Measuring Cost Efficiency in Banking: Econometric and Linear Programming Evidence.” Journal of Econometrics 46, 229–245.

    Google Scholar 

  • Førsund, F.R., C.A.K. Lovell, and P. Schmidt. (1980). “A Survey of Frontier Production Functions and of Their Relationship to Efficiency Measurement.” Journal of Econometrics 13, 5–25.

    Google Scholar 

  • Førsund, F.R. and E. Hernaes. (1994). “A Comparative Analysis of Ferry Transport in Norway.” In A. Charnes, W.W. Cooper, A.Y. Lewin, and L.M. Seiford (eds.), Data Envelopment Analysis: Theory, Methodology and Applications. Kluwer Academic Publishers.

  • Fried, H.O., C.A.K. Lovell, and S.S. Schmidt (eds.). (1993). The Measurement of Productive Efficiency: Techniques and Applications. Oxford University Press.

  • Hjalmarsson, L., S.C. Kumbhakar, and A. Heshmati. (1996). “DEA, DFA and SFA: A Comparison.” The Journal of Productivity Analysis 7, 303–327.

    Google Scholar 

  • IDEAS: Integrated Data Envelopment Analysis System, Version 5.1.2, 1 Consulting, Inc., Amherst., 1995.

  • Johnes, G. (1995). “Scale and Technical Efficiency in the Production of Economic Research.” Applied Economic Letters 2, 7–11.

    Google Scholar 

  • Kalaitzandonakes, N.G. and E.G. Dunn. (1995). “Technical Efficiency, Managerial Ability and Farmer Education in Guatemalan Corn Production: A Latent Variable Analysis.” Agricultural and Resource Economic Review 24, 36–46.

    Google Scholar 

  • Löthgren, M. and M. Tambour. (1996). “Alternative Approaches to Estimate Returns to Scale in DEA-Models.” Working Paper No. 90, January, The Economic Research Institute, Stockholm School of Economics.

  • Meeusen, W. and J. van den Broeck. (1977). “Efficiency Estimation from Cobb-Douglas Production Functions with Composite Error.” International Economic Review 18, 435–444.

    Google Scholar 

  • Seiford, L.M. and R.M. Thrall. (1990). “Recent Developments in DEA: The Mathematical Programming Approach to Frontier Analysis.” Journal of Econometrics 46, 7–38.

    Google Scholar 

  • Sharma, K.R. (1996). “Productive Efficiency of the Swine Industry in Hawaii: Stochastic Production Frontier vs. Data Envelopment Analysis.” Unpublished Ph.D. Thesis, University of Hawaii at Manoa.

    Google Scholar 

  • Sharma, K.R., P.S. Leung, and H.M. Zaleski (1996). Production Economics of the Swine Industry in Hawaii. Research Extension Series 163, Hawaii Institute of Tropical Agriculture and Human Resources.

Download references

Author information

Authors and Affiliations

  1. Department of Agricultural and Resource Economics, University of Hawaii at Manoa, 3050 Maile Way, Gilmore Hall 115, Honolulu, HI, 96822

    Khem R. Sharma & Pingsun Leung

  2. Department of Animal Sciences, University of Hawaii at Manoa, 1800 East-West Road, Henke Hall 106, Honolulu, HI, 96822

    Halina M. Zaleski

Authors
  1. Khem R. Sharma
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Pingsun Leung
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Halina M. Zaleski
    View author publications

    You can also search for this author in PubMed Google Scholar

Rights and permissions

Reprints and permissions

About this article

Cite this article

Sharma, K.R., Leung, P. & Zaleski, H.M. Productive Efficiency of the Swine Industry in Hawaii: Stochastic Frontier vs. Data Envelopment Analysis. Journal of Productivity Analysis 8, 447–459 (1997). https://doi.org/10.1023/A:1007744327504

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1023/A:1007744327504

Search

Navigation