Efficiency analysis based on the data of forest accountancy networks – prospects and limitations

Freiburg im Breisgau

2010

S. 127-133

6 Tab., 6 Lit. Ang.

Artikel aus einer ZeitschriftUnselbständiges Werk

200166405

Data Envelopment Analysis (DEA) is a powerful tool for assessing measures of relative efficiency. The approach is capable of dealing with a multitude of inputs and outputs simultaneously. As the significance of the results depends on both the number of variables and the number of decision making units, it is tempting to investigate the applicability of DEA to the pool of data represented by forest accountancy data networks. The aim of this paper is to highlight the potentials of such an analysis in generating additional management information as well as to point out the preconditions, obstacles and limitations associated with the exercise. The example of two Austrian forest accountancy networks demonstrates how alternative models can be created based on a given data set and to what extent the results depend on the exact model specifications. Some of the crucial aspects of deriving efficiency measures for forest enterprises are addressed such as the definition of the decision making units, the aggregation of inputs and outputs, the standardization of measures and the treatment of uncontrollable variables. It is concluded that comparative efficiency analysis via DEA may well extend the scope of analyses and interfirm comparisons utilizing data from accountancy networks. However, a prudent model specification is a pre-requisite for deriving not only sound, but also relevant, results.