Khem R. Sharma

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

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 industrys potential for increasing production through improved efficiency is also discussed.

Technical Efficiency of the Longline Fishery in Hawaii: An Application of A Stochastic Production Frontier

This paper examines the level and determinants of technical efficiency for a sample of domestic longline fishing vessels operating in Hawaii in 1993. The data on per-trip costs and revenues, fishing targets, vessel ownership, experience and education level of fishermen, vessel size, and vessel age are analyzed using a translog stochastic production frontier, including a model for vessel-specific technical inefficiencies. Output elasticities, marginal productivities of inputs, and returns to scale are also examined. The technical inefficiency effects are found to be highly significant in explaining the levels of and variation in vessel revenues. The mean technical efficiency for the sample vessels is estimated to be 84%. Vessels that target swordfish, and those varying target by season, set, or trip, tend to be less efficient than those vessels targeting tuna and those mixing targets in all trips. Owner-operated vessels seem to be more efficient than those operated by hired captains. The experience of fishermen has a strong positive influence on technical efficiency. Although insignificant, vessel size and fishermens education level have a positive influence, and vessel age has a negative influence on vessel efficiency.

Technical efficiency of carp production in Nepal: An application of stochastic frontier production function approach*

Modern aquaculture is a relatively new activity among Nepalese farmers and a small contributor to the economy. Given the abundance of water resources and fish species, rising demand for fish, and its high profitability, aquaculture has potential for future expansion if it gets appropriate attention from the government. In Nepal, productivity in aquaculture is much lower compared to other countries in the region, which suggests that there is potential for increased fish production through technological progress and improvement in farm-level technical efficiency. However, no formal analysis has yet been conducted to assess the productive performance of Nepalese aquaculture and its potential for future improvement. Against this background, this paper examines the technical efficiency and its determinants for a sample of fish pond farms from the Tarai region of the country using a stochastic production frontier involving a model for technical inefficiency effects. The estimated mean technical efficiency is 77%, with intensive farms being more efficient than extensive farms. The adoption of regular fish, water, and feed management activities has a strong positive effect on technical efficiency.

Technical efficiency of carp pond culture in peninsula Malaysia : an application of stochastic production frontier and technical inefficiency model

Carp pond culture is an important contributor to the aquaculture industry in Peninsula Malaysia. However, carp production has decreased since the advent of new aquaculture development policies, and carp pond farms are concerned with improving productivity to sustain growing fish demand while staying profitable. In this paper, stochastic production frontier analysis is conducted in conjunction with a technical inefficiency model to examine the productive performance and its determinants in carp pond culture in Peninsula Malaysia. The mean technical efficiency for sample carp farms is estimated to be 42%, indicating a great potential for increasing carp production in Peninsula Malaysia through improved efficiency. Seed ratio has a significant effect on fish production; therefore, the proper choice of species composition is important to improving productivity in carp polyculture. Because the intensive/semi-intensive system is found to be technically more efficient than the extensive system, efforts should be made to promote the intensive/semi-intensive carp culture.

Technical efficiency of carp pond culture in South Asia: An application of a stochastic meta‐production frontier model

Abstract A stochastic meta‐production frontier model is estimated to examine the inter‐country differences in levels of technical efficiency of semi‐intensive/intensive and extensive carp pond culture systems among the major carp producing countries in South Asia, namely India, Bangladesh, Pakistan, and Nepal. The mean technical efficiencies for semi‐intensive/intensive farms vary from 0.68 for Nepal to 0.79 for India, with an overall average of 0.75 and those for extensive farms vary from 0.48 for Bangladesh to 0.62 for Pakistan, with an overall mean of 0.57. Differences in efficiency levels are explained in terms of various farm‐specific and country‐specific factors by estimating a model for technical inefficiency effects. The adoption of recommended fish, water, and feed management practices is found to be critical for improved performance of carp producers. For each country, the study also compares the efficiency scores based on its own production frontier with those obtained from the meta‐production frontier.

A review of production frontier analysis for aquaculture management

Abstract This paper examines recent advances in production economics with special reference to efficiency measurement using production frontiers and its implications for aquaculture management. Compared with agriculture and other industries, the use of production frontiers in aquaculture is still very limited. However, in recent years several frontier applications in aquaculture have appeared in the literature, suggesting potential applications of these techniques in aquaculture. A synopsis of stochastic frontier production function model and data envelopment analysis (DEA), the two most popular approaches to efficiency measurement, is presented, followed by a review of recent frontier studies in shrimp, carp and tilapia production. The paper concludes with a brief discussion of future development and prospects of frontier applications for aquaculture management.

PERFORMANCE MEASUREMENT OF HAWAII STATE PUBLIC LIBRARIES: AN APPLICATION OF DATA ENVELOPMENT ANALYSIS (DEA)

In view of continuing economic stagnation and consequent budgetary constraints facing the state, Hawaii public libraries have been concerned with their operational efficiency and library managers have been seeking better methods in allocating limited resources among the libraries. This paper employed data envelopment analysis (DEA) technique to assess the performance and resource utilization efficiency of 47 public libraries in Hawaii. Three output measures-circulation, reader visits, and reference transactions and four input categories- collection, library staff, days open, and nonpersonal expenditures were used in the analysis. For fiscal year 1996/97, the estimated technical efficiency scores for Hawaii State public library branches ranged from 0.45 to 1.00, with an average of 0.84. The results showed that 14 of the 47 libraries are technically efficient. The estimated efficiency scores were related to relevant library-specific factors and community characteristics, such as total floor space, size of collection, population density, and location to identify factors influencing library performance. Only floor space and volume of collection did show moderate positive effects on library performance. The resulting information can be mainly useful in improving the performance of inefficient libraries. With special consideration to factors uncontrollable by the libraries the results may also be useful in allocating limited resources among them.

Stochastic frontier approach to measuring irrigation performance: An application to rice production under the two systems in the Tarai of Nepal

This study employs the stochastic frontier production function approach to measuring the productive performance of canal irrigation in terms of farm-specific technical efficiency. The 1993 production data from samples of rice farmers from Khageri (government managed) and Pithuwa (farmer managed) irrigation systems in the Tarai of Nepal were analyzed using a stochastic production frontier, including a model for the technical inefficiency effects. Relative both to a common or pooled production frontier for the two systems and a separate or own frontier for each system, on average, the farmers from the farmer-managed system were found to be more efficient than those from the government system. Furthermore, the government system showed higher spatial variability in technical efficiency in rice production than the farmer-managed one, which suggests that irrigation management has a significant influence on production and hence on the distribution of productivity gains among the farmers. However, better performance of the farmer-managed irrigation system relative to the government system should be weighed against the higher transaction costs associated with irrigation management by farmers. The results indicate that substantial potential exists for increasing rice production by increasing the application of chemical fertilizer, the planting of seed, and the use of irrigation and by improving technical efficiency at the farm level.