Measurement of Technical, Allocative, Economic, and Scale Efficiency of Rice Production in Arkansas Using Data Envelopment Analysis
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Data envelopment analysis is used to calculate technical, allocative, economic, and scale
efficiencies for fields enrolled in the University of Arkansas Rice Research Verification
Program. The results reveal most fields have high technical and scale efficiencies, implying
inputs are used in minimum levels necessary to achieve given output levels and fields are
close to optimal in size. However, most fields exhibit allocative and economic inefficiencies
and do not use inputs in the right combinations necessary to achieve cost minimization. Tobit
analysis indicated allocative and economic efficiencies could be improved with better variety
selection and better irrigation management.
