Decomposition of Economic Efficiency under Risk into Technical and Allocative Risks: A Study on Fish Production in South Tripura District, Tripura, India
The risk arises from inadequate knowledge about best practice techniques (technical risk) and markets/prices (allocative risk). On the basis of this assumption, the economic inefficiency has been decomposed into inefficiencies due to technical and allocative risks. The study, conducted during 2004-05, is based on the primary cross-sectional data collected from six villages from three rural development blocks of South Tripura district in the Tripura state of India, with 239 farms as the sample. More than 96 per cent of the difference between observed and frontier output has been found primarily due to factors which are under the control of farms, i.e. due to technical inefficiencies. The mean economic efficiency under risk has been estimated at the level of 34.11 per cent. The economic inefficiency due to technical risk and allocative risk has been found as 20.86 and 45.03 per cent, respectively of the existing economic inefficiency. The variations in EEar (allocative risks) have been found lower than those in EEtr (technical risks). A negative correlation has been observed between EEtr and EEar. The amount of EEtr has been found to be lower than that of EEar.
Volume (Year): 18 (2005)
Issue (Month): 2005 ()
|Contact details of provider:|| Web page: http://www.geocities.com/aeraindia/|
More information through EDIRC
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.:
- L. Dean Hiebert, 1974. "Risk, Learning, and the Adoption of Fertilizer Responsive Seed Varieties," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(4), pages 764-768.
- Kalirajan, K P, 1990. "On Measuring Economic Efficiency," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 5(1), pages 75-85, January-M.
- Kislev Yoav & Nira Shchori-Bachrach, 1973. "The Process of an Innovation Cycle," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 55(1), pages 28-37.
- Schultz, Theodore W, 1975. "The Value of the Ability to Deal with Disequilibria," Journal of Economic Literature, American Economic Association, vol. 13(3), pages 827-46, September.
When requesting a correction, please mention this item's handle: RePEc:ags:aerrae:58462. 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: (AgEcon Search)
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.