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Analysis on the Returns to Scale of Fiscal Expenditure on Agriculture in China

Author: JiCheng
Tutor: ZhouHong
School: Nanjing Agricultural College
Course: Applied Mathematics
Keywords: DEA production possibility sets of intersection-form non-parametricproduction function returrls to scale
CLC: F224
Type: Master's thesis
Year: 2009
Downloads: 31
Quote: 0
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Abstract

Data envelopment analysis(DEA) is a new crossing domain among mathematics, operational research, mathematical economics and management science. DEA is a method which can evaluate the units of multi-input and multi-output by mathematical programming. Since the initial model, many new models have been created, and they have been widely applied in all the fields of the society. This thesis is mainly composed by three parts:1. With the application of the production possibility sets of intersection-form, this article presents the multivariate production function which is determined by the non-parametric method;2. This paper gives an empirical analysis using DEA in China fiscal expenditure on agriculture between2000and2006;3. Throughing software programming analysis intuitively the state of returns to scale when the input scale is larger, This paper aims at analysis the proving direction, which could make more effectively allocation of China fiscal expenditure on agriculture.Firstly, this article researched DEA model, based on justice system to determine the production possibility set "sum-form" of the production possibility set. And then proved that in the single-input single-output case of how under the "intersection-form" multi-faceted cone into "sum-form" multi-faceted cone method. By this method can be used linear programming approach to the analysis of returns to scale, and can determine the status of returns to scale (especially the "saturation" and "crowded"). Theoretical proof of completion, but also an innovative point of this article.Secondly, accessed to the study of Chinese Agricultural Statistical Yearbook and China Statistical Yearbook, this paper filtered out the data needed for this article, including2000to2006the support of the various parts of rural production costs and operating expenses, capital expenditures, Three items of sci-tech funds, agriculture, forestry, animal husbandry and fishery total value. In this paper, a total of five of China’s fiscal expenditure on agriculture projects (support to rural production costs and sectors such as agriculture, forestry, hydro-meteorological operating expenses, capital expenditure in agriculture, agricultural Three items of sci-tech funds, rural relief costs and other expenses, etc.). Among them, expenditures and operating expenses to support rural production, agriculture, capital expenditures are the two major items of expenditure, the proportion of their total expenditure in general government investment in agriculture of more than80%of the total; With the development of productive forces and national independent innovation strategy put forward by agriculture science and technology and inputs to agriculture’s role will become increasingly large, therefore, these three items of expenditure this financial investment in agriculture as a factor to consider, while the output value of agriculture, forestry, animal husbandry and fishery output factors as a financial support for agriculture. By screening out the data using DEA methods of production possibility set changes in China in recent years, the financial returns to scale agricultural expenditure analysis.Lastly, by analyzing the data, this paper screened out the direction of program analysis and improvement, so that China’s financial support for agriculture are more efficient. Throughing model analysis, China’s agricultural output’s growth of the state financial support for agriculture depends heavily invested, the current agricultural output growth also can not do without state financial support, it needs to further improve the financial efficiency in the use of funds into agriculture, so that financial support maximize the marginal benefits of agricultural funds. Through analysis of the results and recommended that future financial support for agriculture on the three major capital investment adjustments, the financial cost of the overall annual rate of agriculture circumstances, to support rural production to reduce costs and operating expenses of the investment proportion of the various parts to increase the agricultural science and technology three costs and spending on agricultural infrastructure.

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