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Estimating Production Risk and Inefficiency Simultaneously: An Application to Cotton Cropping Systems

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  • Jaenicke, Edward C.
  • Frechette, Darren L.
  • Larson, James A.

Abstract

By using a stochastic frontier framework, the mutual effect of input use on production risk and inefficiency is investigated. Disentangling this mutual effect proves important for empirical reasons, at least when applied to west Tennessee cotton systems grown after various cover crops. The most striking result is that the stochastic frontier model, when compared with a typical Just-Pope model, reorders the relative riskiness of cover-crop regimes associated with the cotton systems.

Suggested Citation

  • Jaenicke, Edward C. & Frechette, Darren L. & Larson, James A., 2003. "Estimating Production Risk and Inefficiency Simultaneously: An Application to Cotton Cropping Systems," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(3), pages 1-18, December.
    • Handle: RePEc:ags:jlaare:31059
    DOI: 10.22004/ag.econ.31059
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    References listed on IDEAS

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    Cited by:

    1. Boyer, Christopher & Harmon, Xavier & Lambert, Dayton & Larson, James & Donald, Tyler, 2017. "Risk Effects on Nitrogen Fertilization and Cost-Share Payments under Alternative Tillage and Cover Crop Systems for Cotton," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252482, Southern Agricultural Economics Association.
    2. Muhamad Zahid Muhamad & Mad Nasir Shamsudin & Nitty Hirawaty Kamarulzaman & Nolila Mohd Nawi & Jamaliah Laham, 2022. "Investigating Yield Variability and Technical Efficiency of Smallholders Pineapple Production in Johor," Sustainability, MDPI, vol. 14(22), pages 1-18, November.
    3. Boyer, Christopher N. & Jensen, Kimberly L. & McLeod, Elizabeth & Larson, James A., 2016. "Upland Cotton Producers’ Willingness to participate in a BMP/STAX Pilot Program," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 234975, Agricultural and Applied Economics Association.
    4. Bergtold, Jason S. & Duffy, Patricia A. & Hite, Diane & Raper, Randy L., 2012. "Demographic and Management Factors Affecting the Adoption and Perceived Yield Benefit of Winter Cover Crops in the Southeast," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 44(1), pages 1-18, February.
    5. Do, Huu-Luat & Dang Thuy, Truong, 2022. "Productivity response and production risk: A study of mangrove forest effects in aquaculture in the Mekong River Delta," Ecological Economics, Elsevier, vol. 194(C).
    6. Antti Saastamoinen, 2015. "Heteroscedasticity Or Production Risk? A Synthetic View," Journal of Economic Surveys, Wiley Blackwell, vol. 29(3), pages 459-478, July.
    7. Bergtold, Jason S. & Duffy, Patricia A. & Hite, Diane & Raper, Randy L., 2008. "Demographic and Management Factors Affecting the Perceived Benefit of Winter Cover Crops in the Southeast," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6424, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Boyer, Christopher M. & Lambert, Dayton M. & Larson, James A. & Tyler, Donald, 2017. "Investment Analysis of Long-term Cover Crops and Tillage Systems on Cotton Production," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258525, Agricultural and Applied Economics Association.
    9. Che, Yuyuan & Ghosh, Sujit K. & Rejesus, Roderick M., 2022. "Estimating Production Risk Effects with Inequality Constraints," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322189, Agricultural and Applied Economics Association.
    10. Ali D. Cagdas & Scott R. Jeffrey & Elwin G. Smith & Peter C. Boxall, 2016. "Environmental Stewardship and Technical Efficiency in Canadian Prairie Canola Production," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 64(3), pages 455-477, September.
    11. Cagdas, Ali D. & Jeffrey, Scott R. & Smith, Elwin G. & Boxall, Peter C., 2013. "Adoption of BMPs and technical inefficiency in Canadian canola production," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150200, Agricultural and Applied Economics Association.

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