Management of agricultural research centers in Brazil: A DEA application using a dynamic GMM approach

In this paper, we measure the performance for each of the Brazilian Agricultural Research Corporation research centers by means of a Data Envelopment Analysis model. Performance data are available for a panel covering the period 2002-2009. The approach is instrumentalist, in the sense of Ramalho, Ramalho, and Henriques (2010). We investigate the effects on performance of contextual variable indicators related to the intensity of partnerships and revenue generation. For this purpose, we propose a fractional nonlinear regression model and dynamic GMM (Generalized Method of Moments) estimation. We do not rule out the endogeneity of the contextual variables, cross-sectional correlation or autocorrelation within the panel. We conclude that revenue generation and previous performance scores are statistically significant and positively associated with actual performance.