Abstract:
Bootstrapping the DEA is one of the current methods
of measuring robust efficiency by
constructing a confidence interval and measuring th
e noise (bias) in production. In this
study, two estimators: the conventional Data Envelo
pment Analysis (DEA) and bootstrap
simulation with 2,000 bootstrap iterations were app
lied on a cross sectional data of 296
broiler farms in Peninsular Malaysia. The objective
of the study was to measure the
robust technical efficiency, production bias and fa
ctors motivating technical efficiency in
the Northern, Southern, and East-central regions of
Peninsular Malaysia. As a regional
approach, the study found the existence of both ine
fficiency and noise in broiler farms
across regions of Peninsular Malaysia. Findings sho
w disease infestation and unfavorable
temperature as components of noise or exogenous fac
tors or factors beyond farmers’
control in broiler production. The study identified
age (+), education (+), experience (+),
production system (-), number of poultry farms owne
d (-), business status (+) and land
tenure status (-) as statistically significant in a
meliorating efficiency in broiler production.
Result also show that strong statistically signific
ant differences exist in the magnitude of
technical efficiency scores between the two estimat
ors across the regions. The study
advocate for increase in scale of production as maj
ority of the farmers produce at
increasing returns to scale.
Keywords
: Bias-corrected, FEAR, Frontier, Iteration, Robust
.
