Determining technical, allocative and cost efficiencies of rice farmers in Kedah, Malaysia using data envelopment analysis

This study estimates technical, allocative, and cost efficiency using cost DEA model under both constant returns to scale (CRS) and variable returns to scale (VRS) respectively using survey data of 70 rice farmers from Kedah, Malaysia. In case of cost efficiency only 4.29% of the farmers were 100% t...

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Bibliographic Details
Main Authors: Khan, Sahubar Ali Mohd. Nadhar, Baten, M. D. Azizul, Nawawi, Mohd. Kamal Mohd, Murat, Rusdi @ Indra Zuhdi bin
Format: Conference Proceeding
Language:English
Subjects:
Cost analysis
Data envelopment analysis
Economic models
Operations research
Online Access:Get full text
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Summary:This study estimates technical, allocative, and cost efficiency using cost DEA model under both constant returns to scale (CRS) and variable returns to scale (VRS) respectively using survey data of 70 rice farmers from Kedah, Malaysia. In case of cost efficiency only 4.29% of the farmers were 100% technically efficient under CRS while it is increased into 16.90% under VRS. The average technical, allocative and cost efficiencies were estimated at 0.28, 0.878 and 0.255 respectively under CRS while they were increased into 0.61, 0.883 and 0.533 respectively under VRS.
ISSN:0094-243X
1551-7616
DOI:10.1063/1.4966075