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A Nonparametric Efficiency Analysis Of California Cotton Ginning Cooperatives

Author

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  • Caputo, Michael R.
  • Lynch, Lori

Abstract

In the spirit of Leamer's commitment to sensitivity analysis, we employ Farrell's nonparametric efficiency methodology and compare our results with those of Sexton, Wilson, and Wann. Testing the implicit assumption of technical efficiency in the methodology employed by Sexton, Wilson, and Wann, we find that the lack of technical efficiency is the cotton gins' main cause of overall inefficiency. We extend the nonparametric methodology by subjecting the shadow prices of technical efficiency to nonparametric statistical tests to draw stronger conclusions. In addition, the nonparametric methodology permits us to make gin-specific recommendations to improve the performance of the gins.

Suggested Citation

  • Caputo, Michael R. & Lynch, Lori, 1993. "A Nonparametric Efficiency Analysis Of California Cotton Ginning Cooperatives," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 0(Number 2), pages 1-15, December.
  • Handle: RePEc:ags:jlaare:30966
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    File URL: http://ageconsearch.umn.edu/record/30966/files/18020251.pdf
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    References listed on IDEAS

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    1. Jay T. Akridge, 1989. "Measuring Productive Efficiency in Multiple Product Agribusiness Firms: A Dual Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(1), pages 116-125.
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    Cited by:

    1. Hailu, Getu & Goddard, Ellen W. & Jeffrey, Scott R., 2005. "Measuring Efficiency in Fruit and Vegetable Marketing Co-operatives with Heterogeneous Technologies in Canada," 2005 Annual meeting, July 24-27, Providence, RI 19507, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Lori Lynch & Wesley N. Musser, 2001. "A Relative Efficiency Analysis of Farmland Preservation Programs," Land Economics, University of Wisconsin Press, vol. 77(4), pages 577-594.
    3. Chaddad, Fabio Ribas, 2006. "Investment Constraints in Agricultural Cooperatives: Theory, Evidence and Solutions," 44th Congress, July 23-27, 2006, Fortaleza, Ceará, Brazil 143259, Sociedade Brasileira de Economia, Administracao e Sociologia Rural (SOBER).

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    Keywords

    Agribusiness;

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