Non-Parametric Analysis of Technical Efficiency: Factors Affecting Efficiency of West Java Rice Farms

The objectives of this analysis are to evaluate the technical and scale efficiency of rice farms in West Java and to identify determinants affecting farms’ efficiency. Further, the farm size–productivity relation is investigated. Data Envelopment Analysis is used to estimate technical efficiency scores. Additionally, Tobit regression is used to explain the variation in the efficiency scores related to farm-specific factors. I conclude that farm size is one of the most important factors of farm’s technical efficiency and that high land fragmentation was the main source of the technical inefficiency during the final period of the intensification era, known as the Green Revolution.