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Economic Efficiency of Agricultural Production In Brazil

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  • Vicente, José R.
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    Abstract

    This study measures levels of technical, allocative and economic efficiency in agricultural crop production for Brazil in 1995. A nonparametric frontier model (DEA) under constant returns to scale was used. On average, the results suggest that the sector suffers from moderate technical inefficiency and from strong allocative inefficiency. If full technical efficiency were achieved, the crop production would increase by more than 30% over that obtained in 1995. Land and labor were overutilized, while fertilizers and pesticides were underutilized. Climate, soil conditions and irrigation use affected technical efficiency levels, and education in rural areas helped explain the extent of allocative efficiency. The state of São Paulo State was the only production unit in Brazil operating in full efficiency in 1995.

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    Bibliographic Info

    Article provided by Sociedade Brasileira de Economia e Sociologia Rural in its journal Brazilian Journal of Rural Economy and Sociology (RESR).

    Volume (Year): 42 (2004)
    Issue (Month): 2 (June)
    Pages:

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    Handle: RePEc:ags:rdecag:156074

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    Related research

    Keywords: agricultural production; nonparametric frontier; economic efficiency; technical efficiency; allocative efficiency.; Agribusiness; Q12 e O30;

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    1. Diewert, W Erwin, 1978. "Superlative Index Numbers and Consistency in Aggregation," Econometrica, Econometric Society, vol. 46(4), pages 883-900, July.
    2. 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.
    3. Schultz, Theodore W, 1975. "The Value of the Ability to Deal with Disequilibria," Journal of Economic Literature, American Economic Association, vol. 13(3), pages 827-46, September.
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