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Economic Efficiency of Agricultural Production In Brazil

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  • Vicente, José R.

Abstract

This study measures levels of technical, allocative and economic efficiency in agricultural crop production for Brazil in 1995. A nonparametric frontier model (DEA) under constant returns to scale was used. On average, the results suggest that the sector suffers from moderate technical inefficiency and from strong allocative inefficiency. If full technical efficiency were achieved, the crop production would increase by more than 30% over that obtained in 1995. Land and labor were overutilized, while fertilizers and pesticides were underutilized. Climate, soil conditions and irrigation use affected technical efficiency levels, and education in rural areas helped explain the extent of allocative efficiency. The state of São Paulo State was the only production unit in Brazil operating in full efficiency in 1995.

Suggested Citation

  • Vicente, José R., 2004. "Economic Efficiency of Agricultural Production In Brazil," Brazilian Journal of Rural Economy and Sociology (RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 42(2), June.
  • Handle: RePEc:ags:rdecag:156074
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    File URL: http://purl.umn.edu/156074
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    References listed on IDEAS

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    1. Schultz, Theodore W, 1975. "The Value of the Ability to Deal with Disequilibria," Journal of Economic Literature, American Economic Association, vol. 13(3), pages 827-846, September.
    2. 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.
    3. Diewert, W Erwin, 1978. "Superlative Index Numbers and Consistency in Aggregation," Econometrica, Econometric Society, vol. 46(4), pages 883-900, July.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    agricultural production; nonparametric frontier; economic efficiency; technical efficiency; allocative efficiency.; Agribusiness; Q12 e O30;

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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