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A comparison of the efficiency of producers under collective and individual modes of organisation

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  • Michael Martin

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  • Timothy G. Taylor

    ()

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    Abstract

    This paper compares collective and individuals production systems' technical and allocative efficiency. The producers being studied belong to Honduran agrarian reform cooperatives engaging in colective and/or individual maize production. Debreu-Farrell technical efficiency related to stochastic production is calculated. Allocative efficiency is obtained from an analytically derived cost frontier. Results indicate that collective systems are slightly more efficient than individual production systems. Worker-shirking (one of the most cited theoretical arguments against colective form of enterprise) would seem to have no empirical basis from these results.

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    File URL: http://www.fce.unal.edu.co/cej/number1/9-Michel.pdf
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    Bibliographic Info

    Article provided by UN - RCE - CID in its journal COLOMBIAN ECONOMIC JOURNAL.

    Volume (Year): (2002)
    Issue (Month): ()
    Pages:

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    Handle: RePEc:col:000096:001906

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    Keywords: cooperative;

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    1. Will Bartlett & Saul Estrin & John Cable & Stephen Smith, 1992. "Labor-managed cooperatives and private firms in north central Italy: An empirical comparison," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, ILR Review, Cornell University, ILR School, vol. 46(1), pages 103-118, October.
    2. Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-44, June.
    3. Dong, Xiao-yuan & Putterman, Louis, 1997. "Productivity and Organization in China's Rural Industries: A Stochastic Frontier Analysis," Journal of Comparative Economics, Elsevier, Elsevier, vol. 24(2), pages 181-201, April.
    4. Seale, James M, Jr, 1990. "Estimating Stochastic Frontier Systems with Unbalanced Panel Data: The Case of Floor Tile Manufactories in Egypt," Journal of Applied Econometrics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 5(1), pages 59-74, January-M.
    5. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, Elsevier, vol. 6(1), pages 21-37, July.
    6. Murakami Naoki & Liu Deqiang & Otsuka Keijiro, 1994. "Technical and Allocative Efficiency among Socialist Enterprises: The Case of the Garment Industry in China," Journal of Comparative Economics, Elsevier, Elsevier, vol. 19(3), pages 410-433, December.
    7. Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, Elsevier, vol. 19(2-3), pages 233-238, August.
    8. Jensen, Michael C & Meckling, William H, 1979. "Rights and Production Functions: An Application to Labor-managed Firms and Codetermination," The Journal of Business, University of Chicago Press, University of Chicago Press, vol. 52(4), pages 469-506, October.
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    10. Kopp, Raymond J. & Diewert, W. Erwin, 1982. "The decomposition of frontier cost function deviations into measures of technical and allocative efficiency," Journal of Econometrics, Elsevier, Elsevier, vol. 19(2-3), pages 319-331, August.
    11. Boyd, Michael L, 1987. "The Performance of Private and Cooperative Socialist Organization: Postwar Yugoslav Agriculture," The Review of Economics and Statistics, MIT Press, MIT Press, vol. 69(2), pages 205-14, May.
    12. Martin, Michael J & Taylor, Timothy G, 1995. "Evaluation of a Multimedia Extension Program in Honduras," Economic Development and Cultural Change, University of Chicago Press, University of Chicago Press, vol. 43(4), pages 821-34, July.
    13. Bravo-Ureta, Boris E. & Evenson, Robert E., 1994. "Efficiency in agricultural production: The case of peasant farmers in eastern Paraguay," Agricultural Economics, Blackwell, Blackwell, vol. 10(1), pages 27-37, January.
    14. Greene, William H., 1990. "A Gamma-distributed stochastic frontier model," Journal of Econometrics, Elsevier, Elsevier, vol. 46(1-2), pages 141-163.
    15. Kalirajan, K P, 1990. "On Measuring Economic Efficiency," Journal of Applied Econometrics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 5(1), pages 75-85, January-M.
    16. Michael E. Sykuta & Michael L. Cook, 2001. "A New Institutional Economics Approach to Contracts and Cooperatives," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 83(5), pages 1273-1279.
    17. Battese, George E. & Corra, Greg S., 1977. "Estimation Of A Production Frontier Model: With Application To The Pastoral Zone Of Eastern Australia," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, Australian Agricultural and Resource Economics Society, vol. 21(03), December.
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