Key words: DEA method, Malmquist total productivity index

Abstract

The aim of this research was to assess the efficiency and the changes in efficiency in researched companies in the years 1996–2001 by the means of DEA method and an attempt of explanation the inefficiency of these companies with the application of Malmquist index. The subject to the analyses was 49 companies owned by Agricultural Property Agency. In the years 1996–2001 the researched group showed the technical efficiency indices VRS ranging from 0.911 to 0.952 and the average decrease of total productivity in researched companies amounted to 5%. This phenomenon is straightforwardly connected to the changes in technical progress which mean decrease in the researched years reached 5.2%. Slightly positive changes were observed in technical efficiency changes and in changes of pure technical efficiency. Inefficiency of researched companies can result from the execution of statutory missions of the companies and can have its source in the organization of material and human resources. This means, that the material resources of researched companies may be unadjusted to companies main aims, tasks, exploitation conditions, workforce and even to this resources themselves – in the proportions favoring effective management. This issue demands conducting further detailed analyses.

INTRODUCTION

The subject of this paper derives from the basic problem of economics which is the management efficiency and, in particular, the complex problem of measuring the management efficiency. This complexity existing in every economic activity is especially observable in agriculture where an additional influence of the variable called “natural conditions” has to be taken into consideration. The methods of measuring the economic efficiency are required to satisfy the conditions of exactness and low labor consumption. Therefore take their source the initiatives of creation the methods of aspectual utility, between which DEA method is classified.

The first objective of this research was to determine, based on DEA method, the efficiency and changes of efficiency in researched companies in the years 1996–2001. The other objective was to explain these companies’ inefficiency by the means of Malmquist index application.