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European Review of Agriculture Economics Vol 28 (3) (2001) pp.285-306
© 2001 Oxford University Press and the Foundation for the European Review of Agricultural Economics

Estimating confidence intervals for technical efficiency: the case of private farms in slovenia

Bernhard Brümmer

Institut für Agrarökonomie, Kiel, Germany

Summary

This paper analyses the technical efficiency of private farms in Slovenia. Both parametric and non-parametric frontier techniques are employed. The results of the competing methods are compared, and variables that might determine the differences in efficiency are identified. Special attention is directed to the construction of confidence intervals for the individual efficiency estimates. For this purpose, distributional assumptions as well as bootstrapping methods are employed. The analysis reveals a significant degree of inefficiency. However, the confidence intervals suggest a more cautious interpretation of the efficiency scores.

Keywords: technical efficiency, stochastic frontier analysis, data envelopment analysis, confidence intervals, bootstrap


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