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Soil conservation and technical efficiency among hillside farmers in Central America: a switching regression model

  • Daniel Solís
  • Boris E. Bravo-Ureta
  • Ricardo E. Quiroga

The main objective of this paper is to evaluate and analyse technical efficiency (TE) levels for hillside farmers under different levels of adoption of soil conservation in El Salvador and Honduras. A switching regression model is implemented to examine potential selectivity bias for high and low level adopters, and separate stochastic production frontiers, corrected for selectivity bias, are estimated for each group. The main results indicate that households with above-average adoption show statistically higher average TE than those with lower adoption. Households with higher adoption have smaller farms and display the highest partial output elasticity for land. Constraints in the land and credit markets are likely explanations for these differences. In addition, all estimated models show that TE has a positive and significant association with education and extension. Copyright 2007 The Authors Journal compilation 2007 Australian Agricultural and Resource Economics Society Inc .

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File URL: http://hdl.handle.net/10.1111/j.1467-8489.2007.00394.x
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Article provided by Australian Agricultural and Resource Economics Society in its journal Australian Journal of Agricultural and Resource Economics.

Volume (Year): 51 (2007)
Issue (Month): 4 (December)
Pages: 491-510

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Handle: RePEc:bla:ajarec:v:51:y:2007:i:4:p:491-510
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