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The Efficiency of Labor Input in the Tree Nut Growers Industry: A Stochastic Frontier Production Approach Study in Butte County, California

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Author Info
Kuo-Liang Matt Chang () (Department of Economics,South Dakota State University)
Todd A. Lone () (Department of Agricultural Economics, Jordan College of Agricultural Sciences and Technology, California State University, Fresno)
Abstract

This paper aims to examine the contribution of the labor input to agricultural production efficiency. If an increase in numbers of labor does not increase production efficiency, we should have reason to question the current quantity-oriented labor policies in terms of solving the labor shortage issue. In addition, we want to examine the marginal rate of technical substitution (MRTS) between the labor input and other inputs. The MRTS will provide a clear idea of how labor can be replaced with other inputs without losing total production. Finally, the influence of farm labor on economies of scale and economies of scope will also be discussed. We will investigate whether the scale and size of the farm has a significant role in determining production efficiency for our target farmers.

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File URL: http://econ.sdstate.edu/repec/sda/pdf/laborefficiencypaperforAgribusiness.pdf
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Publisher Info
Paper provided by South Dakota State University, Department of Economics in its series SDSU Working Papers (in Progress) with number 42009.

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Length: 21 pages
Date of creation: Sep 2009
Date of revision:
Handle: RePEc:sda:workpa:42009

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Web page: http://econ.sdstate.edu/
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Related research
Keywords: Labor; Stochastic Frontier;

Find related papers by JEL classification:
J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Kalirajan, K P & Shand, R T, 1999. " Frontier Production Functions and Technical Efficiency Measures," Journal of Economic Surveys, Blackwell Publishing, vol. 13(2), pages 149-72, April. [Downloadable!] (restricted)
  2. Daehoon Nahm & Niramon Sutummakid, 2003. "Efficiency of Agricultural Production in the Central Region of Thailand," Research Papers 0302, Macquarie University, Department of Economics. [Downloadable!]
  3. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-32.
  4. Battese, George E. & Corra, Greg. S., 1977. "Estimation Of A Production Frontier Model: With Application To The Pastoral Zone Of Eastern Australia," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 21(03), December. [Downloadable!]
  5. Paul Bishop & Steven Brand, 2003. "The efficiency of museums: a stochastic frontier production function approach," Applied Economics, Taylor and Francis Journals, vol. 35(17), pages 1853-1858, November. [Downloadable!] (restricted)
  6. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July. [Downloadable!] (restricted)
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