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Allocation Efficiency in a Traditional Indian Agriculture

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  • W. David Hopper

Abstract

The hypothesis that Indian cultivators who use traditional technology make rational profit maximizing allocations of factors was tested by observation of the allocation of four major inputs to four production alternatives for 43 farms in north central India. The measurements were made during the peak period of agricultural activity when factor-product allocations are truly competitive. Production functions were determined and the implicit marginal product of each factor and the implicit value of each product were calculated at the mean levels of input and expected output. The calculated relative prices implicit in the factor-product allocations conformed, within error limits, to expectations of profit maximizing behavior derived from a static neoclassical model. When the calculated relative implicit product prices were expanded to the market price level, they were in close correspondence with prices prevailing in the local market town.

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  • W. David Hopper, 1965. "Allocation Efficiency in a Traditional Indian Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 47(3), pages 611-624.
    • Handle: RePEc:oup:ajagec:v:47:y:1965:i:3:p:611-624.
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    1. Gallagher, Marcos & Goetz, Stephan J. & Debertin, David L., 1997. "Efficiency Effects of Institutional Factors: Limited-Resource Farms in Northeast Argentina," 1997 Occasional Paper Series No. 7 198047, International Association of Agricultural Economists.
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    4. José Solana‐Ibáñez & Manuel Caravaca‐Garratón, 2021. "Stakeholder engagement and corporate social reputation: The influence of exogenous factors on efficiency performance (stakeholder engagement and exogenous factors): Stakeholder engagement and exogenou," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(6), pages 1891-1905, November.
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    6. Lass, Daniel A. & Gempesaw, Conrado M., II, 1992. "Estimation Of Firm-Varying, Input-Specific Efficiencies In Dairy Production," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 21(2), pages 1-9, October.
    7. Sauer, J. & Mendoza-Escalante, A., 2008. "Farming in the Eastern Amazon – Poor but Allocatively Efficient," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 43, March.
    8. Dessing, Maryke, 2002. "Labor supply, the family and poverty: the S-shaped labor supply curve," Journal of Economic Behavior & Organization, Elsevier, vol. 49(4), pages 433-458, December.
    9. Hussain, Anwar, 1991. "Resource Use, Efficiency, And Returns To Scale In Pakistan: A Case Study Of The Peshawar Valley," Staff Papers 13627, University of Minnesota, Department of Applied Economics.
    10. Bailey, DeeVon & Biswas, Basudeb & Kumbhakar, Subal C. & Schulthies, B. Kris, 1989. "An Analysis Of Technical, Allocative, And Scale Inefficiency: The Case Of Ecuadorian Dairy Farms," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 14(1), pages 1-8, July.
    11. Sauer, Johannes & Mendoza-Escalante, Arisbe, 2007. "Farming In The Eastern Amazon-Poor But Allocatively Efficient," 47th Annual Conference, Weihenstephan, Germany, September 26-28, 2007 7573, German Association of Agricultural Economists (GEWISOLA).
    12. Nimoh, F. & Asuming-Brempong, S., 2012. "Resource Use Efficiency for Cowpea Production in Akatsi District of Ghana," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society (AESS), vol. 2(01), pages 1-8, March.
    13. Mundlak, Yair, 2001. "Production and supply," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 1, pages 3-85, Elsevier.
    14. Andrews, Margaret S., 1975. "An Analysis Of Small Holder Obectives In The Dominican Republic," Journal of the Northeastern Agricultural Economics Council, Northeastern Agricultural and Resource Economics Association, vol. 4(2), pages 1-9, October.
    15. Kristin Roll, 2013. "Measuring performance, development and growth when restricting flexibility," Journal of Productivity Analysis, Springer, vol. 39(1), pages 15-25, February.
    16. Annemie Maertens & Hope Michelson & Vesall Nourani, 2021. "How Do Farmers Learn from Extension Services? Evidence from Malawi," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(2), pages 569-595, March.
    17. Mellor, John W., 1969. "Production Economics And The Modernization Of Traditional Agricultures," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 13(1), pages 1-10, June.
    18. Maji, Chandi Charan, 1975. "Intertemporal allocation of irrigation water in the Mayurakshi Project (India): an application of deterministic and chance-constrained linear programming," ISU General Staff Papers 197501010800006381, Iowa State University, Department of Economics.
    19. Shabbir Ahmad & Abid A. Burki, 2016. "Banking deregulation and allocative efficiency in Pakistan," Applied Economics, Taylor & Francis Journals, vol. 48(13), pages 1182-1196, March.
    20. Kanter, Christopher A. & Hueth, Brent & Gould, Brian W., 2013. "A Comparative Efficiency Analysis of Cooperative and Non-cooperative Dairy Manufacturing Firms," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150497, Agricultural and Applied Economics Association.
    21. Mundlak, Yair, 1999. "Production and Supply (Revised)," Working Papers 232819, Hebrew University of Jerusalem, Center for Agricultural Economic Research.
    22. Theodoridis, A.M. & Psychoudakis, A. & Christofi, A., 2006. "Data Envelopment Analysis as a Complement to Marginal Analysis," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 7(2), pages 1-11, July.

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