Production economics forms a very important part of an enormous range of economic theory. Agricultural production is no exception. When evaluating the competitiveness of the multifunctional agriculture, it is necessary to use the measure of efficiency instead of productivity. The conception of the efficiency is explained and the methods for measurement are provided. The authors discuss the methods of Stochastic Frontier Approach (SFA), Free Disposal Hull (FDH) and Data Envelopment Analysis (DEA) that are particularly useful for multi-criterial evaluation of multifunctional processes. Those methods assign an efficiency score to each Decision Making Unit (DMU) based on how well it transforms a given set of inputs into outputs. Most studies have only focused on application of DEA method for assesment of the efficiency of agriculture farms. There is still a need on applications for sectors. This paper provides an examination of the applicability of DEA method to agriculture sectors efficiency measurement. By applying mathematical models, which are based on the DEA, the efficiency of agriculture in each EU country was evaluated.

In the article “Professor Tinbergen’s Method” (Keynes J. M. Professor Tinbergen’s Method. − The Economic Journal. 1939. Vol. 49. No. 195) John Maynard Keynes expressed critical notes concerning insufficient scientific level of the Jan Tinbergen’s results obtained with the help of econometric methods. The conclusion of present research is that the critical appraisal of econometric applying given by John Maynard Keynes in 1939 can be completely assigned to many published in Latvia research in economics and business done by inductive statistics because scientists carelessly apply the linear regression model in absence of the knowledge a priori required by proper theorems and algorithms. Moreover, many times there is no sense even to speak about stochastic experiment because the most important condition − ceteris paribus does not fulfil, namely, economic environment is not homogeneous enough. As the result, the causal inferences derived from Regression Report are not scientifically justified. The second conclusion is that the objective criticism in econometrics applications area in order to keep the satisfactory level of scientific correctness and scientific ethics in Latvia has to be established. We also assert that the applications of inductive econometrics in agriculture are much more justified due to possibility to repeat the stochastic experiments many times in constant circumstances like in physics and mechanics. The meta-target of present article is to remind the protests of John Maynard Keynes to the careless utilization of econometric theorems and to raise a wide discussion about the problems of correctness in applying inductive statistics in economics and agriculture in Latvia.