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Estimation and decomposition of technical efficiency for sugarbeet farms

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  • Shunxiang Wu
  • Stephen Devadoss
  • Yaochi Lu
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    Abstract

    This study computes technical efficiency for Idaho sugarbeet farms and decomposes it into pure technical efficiency, scale efficiency, and congestion efficiency using nonparametric procedures. The results indicate that the average efficiency is 0.88 with 45% of the farms in the sample exhibiting full efficiency. Improper scale operation and input overutilization are the major sources of inefficiency for remaining farms. Technical efficiency is independent of farm size. A Tobit model was used to examine the impacts of variables such as farm size, specialization, tenancy position, hired labour, location, and managerial ability on efficiency. Inefficiency in sugarbeet production results in a shortfall of potential revenues not only for producers, but also for landlords and processors.

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210161819
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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Applied Economics.

    Volume (Year): 35 (2003)
    Issue (Month): 4 ()
    Pages: 471-484

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    Handle: RePEc:taf:applec:v:35:y:2003:i:4:p:471-484

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    11. Rowland, William W. & Langemeier, Michael R. & Schurle, Bryan W. & Featherstone, Allen M., 1998. "A Nonparametric Efficiency Analysis For A Sample Of Kansas Swine Operations," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 30(01), July.
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    Cited by:
    1. Boris Bravo-Ureta & Daniel Solís & Víctor Moreira López & José Maripani & Abdourahmane Thiam & Teodoro Rivas, 2007. "Technical efficiency in farming: a meta-regression analysis," Journal of Productivity Analysis, Springer, vol. 27(1), pages 57-72, February.
    2. Geys, Benny & Moesen, Wim, 2008. "Measuring local government technical (in)efficiency: An application and comparison of FDH, DEA and econometric approaches," Discussion Papers, Research Unit: Market Processes and Governance SP II 2008-21, Social Science Research Center Berlin (WZB).

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