Advanced Search
MyIDEAS: Login to save this article or follow this journal

Price Distortions and Resource-Use Efficiency in Indian Agriculture: A Restricted Profit Function Approach

Contents:

Author Info

  • Kumbhakar, Subal C
  • Bhattacharyya, Arunava

Abstract

This paper develops a generalized profit function that incorporates price distortions resulting from imperfect market conditions, sociopolitical and institutional constraints, as well as technical and allocative inefficiency. The model is applied to test (1) the appropriateness of the neoclassical profit function and (2) the effect of education and farm size on allocative performance using farm-level data from Indian agriculture. Empirical results reject the neoclassical profit-maximization hypothesis based on market prices in favor of the general model with price distortions and, therefore, help to improve allocation of inputs and output. Farm size is found to reduce price distortions only for small farmers. Copyright 1992 by MIT Press.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://links.jstor.org/sici?sici=0034-6535%28199205%2974%3A2%3C231%3APDAREI%3E2.0.CO%3B2-R&origin=bc
File Function: full text
Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by MIT Press in its journal Review of Economics & Statistics.

Volume (Year): 74 (1992)
Issue (Month): 2 (May)
Pages: 231-39

as in new window
Handle: RePEc:tpr:restat:v:74:y:1992:i:2:p:231-39

Contact details of provider:
Web page: http://mitpress.mit.edu/journals/

Order Information:
Web: http://mitpress.mit.edu/journal-home.tcl?issn=00346535

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Ray, Subhash C. & Ghose, Arpita, 2014. "Production efficiency in Indian agriculture: An assessment of the post green revolution years," Omega, Elsevier, Elsevier, vol. 44(C), pages 58-69.
  2. Balint, Borbala & Sauer, Johannes, 2006. "Distorted Prices And Producer Efficiency - Romanian Maize," 46th Annual Conference, Giessen, Germany, October 4-6, 2006, German Association of Agricultural Economists (GEWISOLA) 14958, German Association of Agricultural Economists (GEWISOLA).
  3. Rahman, Sanzidur, 2003. "Profit Efficiency Among Bangladeshi Rice Farmers," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa, International Association of Agricultural Economists 25898, International Association of Agricultural Economists.
  4. Sauer, Johannes & Balint, Borbala, 2006. "Romanian Maize - Distorted Prices and Producer Efficiency," 2006 Annual meeting, July 23-26, Long Beach, CA, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) 21410, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  5. Thiam, Abdourahmane & Bravo-Ureta, Boris E. & Rivas, Teodoro E., 2001. "Technical efficiency in developing country agriculture: a meta-analysis," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 25(2-3), September.
  6. Thiam, Abdourahmane & Bravo-Ureta, Boris E. & Rivas, Teodoro E., 2001. "Technical efficiency in developing country agriculture: a meta-analysis," Agricultural Economics, Blackwell, Blackwell, vol. 25(2-3), pages 235-243, September.
  7. Sipilainen, Timo & Oude Lansink, Alfons G.J.M., 2005. "Learning in Organic Farming – An Application on Finnish Dairy Farms," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark, European Association of Agricultural Economists 24493, European Association of Agricultural Economists.
  8. Ali, Farman & Parikh, Ashok & Shah, Mir Kalan, 1996. "Measurement of economic efficiency using the behavioral and stochastic cost frontier approach," Journal of Policy Modeling, Elsevier, Elsevier, vol. 18(3), pages 271-287, June.
  9. Raghbendra Jha & Hari K. Nagarajan & Subbarayan Prasanna, 2005. "Land Fragmentation and its Implications for Productivity: Evidence from Southern India," ASARC Working Papers, The Australian National University, Australia South Asia Research Centre 2005-01, The Australian National University, Australia South Asia Research Centre.
  10. Tai-Hsin Huang, 2000. "Estimating X-Efficiency in Taiwanese Banking Using a Translog Shadow Profit Function," Journal of Productivity Analysis, Springer, Springer, vol. 14(3), pages 225-245, November.
  11. Andersson, Camilla I.M. & Holmgren, Erik & MacGregor, James & Stage, Jesper, 2008. "Giving credit to the microlenders. Formal microlending, credit constraints and adverse selection: a case study of shrimp farmers in Bangladesh," Discussion Papers, International Institute for Environment and Development, Environmental Economics Programme 37921, International Institute for Environment and Development, Environmental Economics Programme.
  12. Sumelius, John & Islam, K.M. Zahidul & Sipilainen, Timo, 2011. "Access to Microfinance: Does it Matter for Profit Efficiency Among Small Scale Rice Farmers in Bangladesh?," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland, European Association of Agricultural Economists 116067, European Association of Agricultural Economists.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:tpr:restat:v:74:y:1992:i:2:p:231-39. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Karie Kirkpatrick).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.