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Production efficiency in Indian agriculture: An assessment of the post green revolution years

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  • Ray, Subhash C.
  • Ghose, Arpita
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    Abstract

    In this paper we use the nonparametric method of Data Envelopment Analysis (DEA) to obtain Pareto-Koopmans measures of technical efficiency of individual states over the years 1970–71 through 2000–01 in a multi-output, multi-input model of agricultural production. We disaggregate overall efficiency into two distinct components representing output and input efficiencies and identify the contribution of individual outputs and inputs to the measured level of overall efficiency. Because introduction of modern inputs has been a major component of the process of modernization of Indian agriculture, we examine to what extent different states succeeded in utilizing the modern inputs compared to the traditional inputs. Variations in the DEA efficiency scores across states and over years is explained in terms of differences in various institutional and demographic factors in a second stage regression analysis.

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    Bibliographic Info

    Article provided by Elsevier in its journal Omega.

    Volume (Year): 44 (2014)
    Issue (Month): C ()
    Pages: 58-69

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    Handle: RePEc:eee:jomega:v:44:y:2014:i:c:p:58-69

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    Related research

    Keywords: Data Envelopment Analysis; Pareto-Koopmans Efficiency; Modern and traditional inputs;

    References

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    1. Timothy Besley & Robin Burgess, 2000. "Land Reform, Poverty Reduction, And Growth: Evidence From India," The Quarterly Journal of Economics, MIT Press, vol. 115(2), pages 389-430, May.
    2. Tone, Kaoru, 2001. "A slacks-based measure of efficiency in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 130(3), pages 498-509, May.
    3. Abhijit Banerjee & Lakshmi Iyer, 2010. "History Institutions and Economic Performance: The Legacy of Colonial Land Tenure Systems in India," Working Papers id:2811, eSocialSciences.
    4. Tadesse, Bedassa & Krishnamoorthy, S., 1997. "Technical efficiency in paddy farms of Tamil Nadu: An analysis based on farm size and ecological zone," Agricultural Economics, Blackwell, vol. 16(3), pages 185-192, August.
    5. Jeon, Yoong-Deok & Kim, Young-Yong, 2000. "Land Reform, Income Redistribution, and Agricultural Production in Korea," Economic Development and Cultural Change, University of Chicago Press, vol. 48(2), pages 253-68, January.
    6. Ray, Subhash C. & Jeon, Yongil, 2008. "Reputation and efficiency: A non-parametric assessment of America's top-rated MBA programs," European Journal of Operational Research, Elsevier, vol. 189(1), pages 245-268, August.
    7. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    8. Asmild, Mette & Pastor, Jesús T., 2010. "Slack free MEA and RDM with comprehensive efficiency measures," Omega, Elsevier, vol. 38(6), pages 475-483, December.
    9. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    10. Kumbhakar, Subal C & Bhattacharyya, Arunava, 1992. "Price Distortions and Resource-Use Efficiency in Indian Agriculture: A Restricted Profit Function Approach," The Review of Economics and Statistics, MIT Press, vol. 74(2), pages 231-39, May.
    11. Deininger, Klaus & Squire, Lyn, 1998. "New ways of looking at old issues: inequality and growth," Journal of Development Economics, Elsevier, vol. 57(2), pages 259-287.
    12. K. Kalirajan, 1981. "An Econometric Analysis of Yield Variability in Paddy Production," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 29(3), pages 283-294, November.
    13. Charnes, A. & Cooper, W. W. & Golany, B. & Seiford, L. & Stutz, J., 1985. "Foundations of data envelopment analysis for Pareto-Koopmans efficient empirical production functions," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 91-107.
    14. Edelstein, Barak & Paradi, Joseph C., 2013. "Ensuring units invariant slack selection in radial data envelopment analysis models, and incorporating slacks into an overall efficiency score," Omega, Elsevier, vol. 41(1), pages 31-40.
    15. Silva Portela, Maria Conceicao A. & Thanassoulis, Emmanuel, 2005. "Profitability of a sample of Portuguese bank branches and its decomposition into technical and allocative components," European Journal of Operational Research, Elsevier, vol. 162(3), pages 850-866, May.
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