A Comparative Study of the Operational Efficiency of Taiwan Irrigation Associations -The Application of 3-Stage DEA and Metafrontier Models
Date Issued
2007
Date
2007
Author(s)
Yang, Shi-Hua
DOI
zh-TW
Abstract
This research tries to estimate the operational efficiency of 15 Taiwan Irrigation Associations using empirical data from 2001 to 2004. In order to meet the characteristics including various outputs, different output qualities and specific production environments, 3-stage DEA and Metafrontier models are chosen and modified for empirical study. The findings of this research may give policy suggestions to improve the operational efficiency.
The estimated operational efficiency, the pure technical efficiency in third stage, is 0.912. The study shows the operational efficiency will be underestimated by 9.88% if output quality variable and production environment variable are ignored. In addition, if scale efficiency is not taken under consideration, the efficiency will be underestimated by 16.48%.
If the outputs are unable to expand in the short run, it is important to emphasize on control and utilization of the production inputs. Slack variable analysis points out the number of employee is to be improved, but capital expenditure is relatively fully utilized. Moreover, output-input ratio analysis shows that the irrigation and drainage to capital expenditure ratio is as high as 1.428, the irrigation and drainage to operation expenditure ratio is 1.412 and the irrigation and drainage to water use ratio is as low as 0.983. According to the findings of sensitivity analysis, output-input ratio and efficiency index, each Irrigation Association could find out its strength and weakness of resources endowment to improve the relative inefficiency and to make progress in the future.
The estimated operational efficiency, the pure technical efficiency in third stage, is 0.912. The study shows the operational efficiency will be underestimated by 9.88% if output quality variable and production environment variable are ignored. In addition, if scale efficiency is not taken under consideration, the efficiency will be underestimated by 16.48%.
If the outputs are unable to expand in the short run, it is important to emphasize on control and utilization of the production inputs. Slack variable analysis points out the number of employee is to be improved, but capital expenditure is relatively fully utilized. Moreover, output-input ratio analysis shows that the irrigation and drainage to capital expenditure ratio is as high as 1.428, the irrigation and drainage to operation expenditure ratio is 1.412 and the irrigation and drainage to water use ratio is as low as 0.983. According to the findings of sensitivity analysis, output-input ratio and efficiency index, each Irrigation Association could find out its strength and weakness of resources endowment to improve the relative inefficiency and to make progress in the future.
Subjects
經營效率
三階段DEA
Metafrontier
Irrigation Association
operational efficiency
3-stage DEA
Type
thesis
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