Application of the bootstrapped DEA for the analysis of Lithuanian family farm efficiency

2012-12-31
Application of the bootstrapped DEA for the analysis of Lithuanian family farm efficiency

Farming efficiency is one of the most important factors determining profitability and viabil-ity in general of the agribusiness. The aim of this paper is to analyze the dynamics of efficiency in Lithuanian family farms by the means of the bootstrapped Data Envelopment Analysis in order to propose certain guidelines for inefficiency mitigation. Stochastic kernels are then employed to esti-mate densities of the efficiency scores for different farming types. The research covers years 2004-2009 and is based on farm-level Farm Accountancy Data Network (FADN) data. The stochastic kernel for livestock farms exhibited a small range of efficiency scores. Therefore, these farms achieved a higher convergence as well as a higher average TE from the standpoint of the analyzed farming types. The mixed farms, though, were peculiar both a sort of bi-modal distribution of their efficiency scores.

Key words: efficiency, family farms, bootstrapping, data envelopment analysis.

JEL codes: C440, C610, Q100, Q130.

Baležentis, T.; Kriščiukaitienė, I. Application of the bootstrapped DEA for the analysis of Lithuanian family farm efficiency // Vadybos mokslas ir studijos - kaimo verslų ir jų infrastruktūros plėtrai = Management theory and studies for rural business and infrastructure development / Aleksandro Stulginskio universitetas. Lietuvos agrarinės ekonomikos institutas. 2012, nr. 5 (34), p. 35-46, ISSN 1822-6760 (EBSCO host: Business Source Complete; Ulrich’s; IndexCopernicus).