An alternative approach to calculating measures of efficiency in the agricultural sector of economy
In economy every effectiveness measure represents a characteristic that reflects the ratio between the effect magnitude and production costs necessitated its obtaining. Practical efficiency indicators do not sufficiently take into account either the costs or the effect, or both of them. There is therefore a need to provide objective assessments of the effectiveness of use of production factors in the agrarian sector of the economy. The implementation of this procedure is based on handling large amounts of information, where homogeneous groups (clusters) are to be selected. Analysis of homogeneous populations (in addition to the methodological requirements) allows detecting the fact that within different clusters there is essentially different relationship between analyzed features. Production functions constructed on selected clusters allow us to calculate the coefficients of elasticity showing the approximate percentage change of the outcome indicator (effect) with 1% change of factor. In this case, the proportion of the resource chosen at random in the total production can be represented as a ratio of the coefficient of elasticity of this resource to the elasticity of the total production. Based on using cluster analysis and the theory of production functions it is shown that in general effectiveness index of using any resource is not constant, but represents a function that depends on the endowment of all the production resources by the enterprise and their impact on the value of the resulting effect. This approach allowed us to offer a method for determining the partial indices of efficiency of particular resource use, which is based on the revealing the resulting effect of the part that is due to the action of this resource.