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Pension Transfers and farm household technical efficiency: Evidence from South Africa

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  • Stefania Lovo

Abstract

This article analyzes the effect of entitlements from the Old Age Pension Program of South Africa on household technical efficiency using a sample of farm households in South Africa's KwaZulu-Natal province. The analysis is at the household level, and off-farm activities are considered as additional outputs in a nonparametric estimation of technical efficiency. This approach captures the jointness between farm and off-farm activities. The pension's effect is identified by exploiting the age-eligibility criteria in the pension program. Results show a positive effect of the pension and suggest that this large cash transfer can improve households' ability to make use of the best available technologies. Copyright 2011, Oxford University Press.

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File URL: http://hdl.handle.net/10.1093/ajae/aar051
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Bibliographic Info

Article provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 93 (2011)
Issue (Month): 5 ()
Pages: 1391-1405

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Handle: RePEc:oup:ajagec:v:93:y:2011:i:5:p:1391-1405

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Cited by:
  1. Fitz, Dylan, 2013. "Development Chutes and Ladders: A Joint Impact Evaluation of Asset and Cash Transfers in Brazil," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150254, Agricultural and Applied Economics Association.
  2. Stefania Lovo, 2012. "Market imperfections, liquidity, and farm household labor allocation: the case of rural South Africa," Agricultural Economics, International Association of Agricultural Economists, vol. 43(4), pages 417-428, 07.
  3. Hung-Hao Chang, 2013. "Old Farmer Pension Program and Farm Succession: Evidence from a Population-Based Survey of Farm Households in Taiwan," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(4), pages 976-991.

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