A comparison of DEA, DFA and SFA methods using data from caspian cattle feedlot farms

Abstract

Data Envelopment Analysis (DEA) is a non parametric data analytic technique that is extensively used by various research communities. In this study, we investigate the relative operating efficiencies of a set of cattle feedlot farm in Iran. The study analyses the technical efficiency the Caspian cattle feedlot farms over the periods 2007-2008. Stochastic Frontier Approach (SFA) and Data Frontier Analysis (DFA) indicate a generally low level of technical efficiency with significant inefficiency differences among farms. Specially, the econometric results suggests that stochastic frontier model generates lower technical efficiency estimates than parametric and nonparametric deterministic models, while parametric deterministic frontier model yields lower estimates than the nonparametric model DEA. © 2010 Asian Network for Scientific Information.