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Technical Efficiency, Managerial Ability And Farmer Education In Guatemalan Corn Production: A Latent Variable Analysis

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  • Kalaitzandonakes, Nicholas G.
  • Dunn, Elizabeth G.
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    Abstract

    In this study it is argued that conflicting empirical results on the relationship between technical efficiency and education may be in part attributed to difficulties in the measurement of key variables. Calculation of technical efficiency with three alternative frontier methods for a sample of Guatemalan corn farms resulted in significant differences both in the average technical efficiency of the sample and the efficiency rankings of individual farms. Furthermore, following two-step procedures where technical efficiency is regressed against a set of explanatory variables, it is shown that the choice of efficiency measurement technique can alter the importance of education as a contributing factor to increased technical efficiency. An alternative approach is presented for investigating the relationship between education and efficiency while accounting for difficulties in the measurement of conceptual variables and measurement errors.

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    Bibliographic Info

    Article provided by Northeastern Agricultural and Resource Economics Association in its journal Agricultural and Resource Economics Review.

    Volume (Year): 24 (1995)
    Issue (Month): 1 (April)
    Pages:

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    Handle: RePEc:ags:arerjl:31462

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    Web page: http://www.narea.org/
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    Keywords: Farm Management;

    References

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    1. Alfons Weersink & Calum G. Turvey & Abdulahi Godah, 1990. "Decomposition Measures of Technical Efficiency for Ontario Dairy Farms," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 38(3), pages 439-456, November.
    2. Gerhard Arminger & Ronald Schoenberg, 1989. "Pseudo maximum likelihood estimation and a test for misspecification in mean and covariance structure models," Psychometrika, Springer, vol. 54(3), pages 409-425, September.
    3. Forsund, Finn R. & Lovell, C. A. Knox & Schmidt, Peter, 1980. "A survey of frontier production functions and of their relationship to efficiency measurement," Journal of Econometrics, Elsevier, vol. 13(1), pages 5-25, May.
    4. Seiford, Lawrence M. & Thrall, Robert M., 1990. "Recent developments in DEA : The mathematical programming approach to frontier analysis," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 7-38.
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    Cited by:
    1. Madau, Fabio A., 2012. "Technical and scale efficiency in the Italian Citrus Farming: A comparison between Stochastic Frontier Analysis (SFA) and Data Envelopment Analysis(DEA) Models," MPRA Paper 41403, University Library of Munich, Germany.
    2. Allen, Summer L. & Badiane, Ousmane & Ulimwengu, John M., 2012. "Government Expenditures, Social Outcomes, and Marginal Productivity of Agricultural Inputs: A Case Study for Tanzania," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126663, International Association of Agricultural Economists.
    3. Solis, Daniel & Bravo-Ureta, Boris E. & Quiroga, Ricardo E., 2006. "The Effect Of Soil Conservation On Technical Efficiency: Evidence From Central America," 2006 Annual meeting, July 23-26, Long Beach, CA 21345, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Thiam, Abdourahmane & Bravo-Ureta, Boris E. & Rivas, Teodoro E., 2001. "Technical efficiency in developing country agriculture: a meta-analysis," Agricultural Economics, Blackwell, vol. 25(2-3), pages 235-243, September.
    5. Nguyen, Khac Minh & Giang, Thanh Long, 2009. "Efficiency Estimates for the Agricultural Production in Vietnam: A Comparison of Parametric and Non-parametric Approaches," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 10(2), June.
    6. Sharma, Khem R. & Leung, PingSun & Zaleski, Halina M., 1999. "Technical, allocative and economic efficiencies in swine production in Hawaii: a comparison of parametric and nonparametric approaches," Agricultural Economics, Blackwell, vol. 20(1), pages 23-35, January.
    7. Vu Hoang Linh, 2012. "Efficiency of rice farming households in Vietnam," International Journal of Development Issues, Emerald Group Publishing, vol. 11(1), pages 60-73, April.
    8. Alene, Arega D. & Zeller, Manfred, 2005. "Technology adoption and farmer efficiency in multiple crops production in eastern Ethiopia: A comparison of parametric and non-parametric distance functions," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 6(1), January.
    9. Alene, Arega D. & Manyong, Victor M. & Gockowski, James, 2006. "The production efficiency of intercropping annual and perennial crops in southern Ethiopia: A comparison of distance functions and production frontiers," Agricultural Systems, Elsevier, vol. 91(1-2), pages 51-70, November.
    10. Sharma, Khem R. & Leung, PingSun & Zaleski, Halina M., 1999. "Technical, allocative and economic efficiencies in swine production in Hawaii: a comparison of parametric and nonparametric approaches," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 20(1), January.

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