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Technical Efficiency And Farm Size: A Non-Parametric Frontier Analysis

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  • Papadas, Christos T.
  • Dahl, Dale C.
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    Abstract

    This study examines the argument that farm size is associated with technical efficiency. A non-parametric, frontier analysis method is used, together with some additional statistical analysis. Although some gains in efficiency appear as we move toward larger farms, they do not seem to be significantly large. The input/output ratios are indeed smaller for larger farms and the difference is statistically significant. It can be attributed however to the fact that smaller farms operate on a smaller scale and not inside the production frontier.

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    File URL: http://purl.umn.edu/13679
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    Bibliographic Info

    Paper provided by University of Minnesota, Department of Applied Economics in its series Staff Papers with number 13679.

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    Date of creation: 1991
    Date of revision:
    Handle: RePEc:ags:umaesp:13679

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    Related research

    Keywords: Productivity Analysis;

    References

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    1. Seiford, Lawrence M. & Thrall, Robert M., 1990. "Recent developments in DEA : The mathematical programming approach to frontier analysis," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 7-38.
    2. Afriat, Sidney N, 1972. "Efficiency Estimation of Production Function," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 13(3), pages 568-98, October.
    3. Sengupta, Jati K., 1990. "Transformations in stochastic DEA models," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 109-123.
    4. 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.
    5. A. Charnes & W. W. Cooper & E. Rhodes, 1981. "Evaluating Program and Managerial Efficiency: An Application of Data Envelopment Analysis to Program Follow Through," Management Science, INFORMS, vol. 27(6), pages 668-697, June.
    6. Banker, Rajiv D., 1984. "Estimating most productive scale size using data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 17(1), pages 35-44, July.
    7. Varian, Hal R., 1990. "Goodness-of-fit in optimizing models," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 125-140.
    8. Bauer, Paul W., 1990. "Recent developments in the econometric estimation of frontiers," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 39-56.
    9. Fare, Rolf & Knox Lovell, C. A., 1978. "Measuring the technical efficiency of production," Journal of Economic Theory, Elsevier, vol. 19(1), pages 150-162, October.
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    Cited by:
    1. Gonzalez, Maria A. & Lopez, Rigoberto A., 2003. "Market-Based Land Reform And Farm Efficiency In Colombia: A Dea Approach," 2003 Annual meeting, July 27-30, Montreal, Canada 22202, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Bozoglu, Mehmet & Ceyhan, Vedat, 2007. "Measuring the technical efficiency and exploring the inefficiency determinants of vegetable farms in Samsun province, Turkey," Agricultural Systems, Elsevier, vol. 94(3), pages 649-656, June.

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