Investigating the Changes of the Technical Efficiencies of the Aquaculture Production in Taiwan
Date Issued
2009
Date
2009
Author(s)
Hung, Ling-Yi
Abstract
The objective of this paper is threefold. First, this paper applies three different methodologies, including Data Envelope Analysis (DEA), classical stochastic frontier analysis and Bayesian stochastic frontier analysis, to estimate technical efficiency of aquaculture farms in Taiwan. In what follows, we compare these three technical efficiencies estimated by these three different methodologies. We conduct the analysis in several steps. We first compare the estimated coefficient of the production function between Bayesian and stochastic production frontier models. In addition, we compare these distributions of technical efficiency by utilizing two different non-parametric methods. To test whether these distributions were the same, the Kruskal-Wallis test is conducted. To further test whether the relative rank of aquaculture farms were consistent between the estimation methods, we use the Spearman Rank test. The final objective of this study is to investigate if the technical efficiency has been changed between 1999 and 2006. First we compare the distribution of technical efficiency obtained from three different methodologies from 1999 to 2006. Finally, we use the results obtained from Bayesian stochastic frontier model to compare the distribution of technical efficiency between 2000 and 2006.mpirical results show that the coefficients of two stochastic frontier models are almost the same. But when compare the production elasticity, the conclusion is that not only the sigh but the most important input exist slightly differences between two methodologies. In addition, the distribution of technical efficiency estimated by DEA is right-skewed, and flatter than the distribution of technical efficiency estimated by other two methods regardless of the fish types. With respect to the examination if the distributions of technical efficiency were the same, results show that at least two distributions are statistically different. In terms of the relative rank of these aquaculture farms, Bayesian and classical stochastic frontier analysis are statistically correlated, but DEA and two stochastic frontier methodologies are strongly correlated only in some kinds of fish and the others are weakly correlated.his study analyses the change of technical efficiency across years, and results show that regardless of these different methodologies, there’s a significant differences between 1999 and 2000. After 2000 there’re some up and down in these years, but the scale is minor. Focusing on the change of technical efficiency between 2000 and 2006, results show that when it compares all percentiles, 2006 are higher than 2000. Most importantly, technical efficiencies are centralized around 0.85 in 2006, but centralized around 0.5 and 0.75 in 2000, that’s the reason why technical efficiencies are higher in 2006.
Subjects
technical efficiency
aquaculture
Data envelope analysis
Stochastic frontier analysis
Type
thesis
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