DOI: 10.36347/sjebm.2014.v01i11.008

Pages: 580-585

The study investigates the relative efficiency of 20 investment programs in agriculture sector studied by Martic et al. (1996). The agriculture bank management is facing the tremendous problem of deciding under the constraints of limited funds and wish to maximize the economic return, which the firms to be selected for their investment portfolio. A recent model in Data Envelopment Analysis (DEA), called Kourosh and Arash Model (KAM) is applied in order to find the most efficient investment program. Although, there were 9 technically efficient investment programs by Constant Returns to Scale (CRS) technology, 10-6-KAM suggests that there are only 2 efficient ones with 10-6 degree of freedom (DF) in the frontier. Moreover, number of technically efficient investment programs was 14 while Variable Returns to Scale (VRS) is applied. However, 10-6-KAM shows there were only 4 efficient ones with 10-6-DF in the frontier.