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The Technical Efficiency of Illinois Grain Farms: An Application of a Ray-Homothetic Production Function

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  • Aly, Hassan Y.
  • Belbase, Krishna
  • Grabowski, Richard
  • Kraft, Steven

Abstract

The purpose of this paper is to measure the extent of technical inefficiency among a sample of Illinois grain farms using the corrected ordinary least squares method. Instead of assuming a Cobb-Douglas production function, a linear form of the ray-homothetic is used. The results show a significant amount of technical inefficiency among all the farms in the sample, but with large farms being less technically inefficient than small farms.

Suggested Citation

  • Aly, Hassan Y. & Belbase, Krishna & Grabowski, Richard & Kraft, Steven, 1987. "The Technical Efficiency of Illinois Grain Farms: An Application of a Ray-Homothetic Production Function," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 19(1), pages 69-78, July.
    • Handle: RePEc:cup:jagaec:v:19:y:1987:i:01:p:69-78_01
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    References listed on IDEAS

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    2. Coelli, Tim J., 1995. "Recent Developments In Frontier Modelling And Efficiency Measurement," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 39(3), pages 1-27, December.
    3. Boris Bravo-Ureta & Daniel Solís & Víctor Moreira López & José Maripani & Abdourahmane Thiam & Teodoro Rivas, 2007. "Technical efficiency in farming: a meta-regression analysis," Journal of Productivity Analysis, Springer, vol. 27(1), pages 57-72, February.
    4. Neff, David L. & Garcia, Philip & Hornbaker, Robert H., 1991. "Efficiency Measures Using The Ray-Homothetic Function: A Multiperiod Analysis," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 23(2), pages 1-9, December.
    5. Levins, Richard A. & Lopez, Ramon E., 1988. "Agricultural Supply Response and Industry Structure," Working Papers 197603, University of Maryland, Department of Agricultural and Resource Economics.
    6. Tim Lefroy & James Key, 2018. "Determinants of Broadacre Farming Efficiency in Western Australia: A Stochastic Frontier Analysis," Economic Papers, The Economic Society of Australia, vol. 37(2), pages 180-196, June.
    7. Neff, David L. & Garcia, Phillip, 1992. "Technical Efficiency: A Comparison of Four Frontier Methods," WAEA/ WFEA Conference Archive (1929-1995) 321397, Western Agricultural Economics Association.
    8. Fletschner, Diana K. & Zepeda, Lydia, 2002. "Efficiency Of Small Landholders In Eastern Paraguay," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(2), pages 1-19, December.
    9. Azad, Md Abdus Samad & Mustafi, B.A.A. & Hossain, Mahabub, 2008. "Hybrid Rice: Economic Assessment of a Promising Technology for Sustainable Food Grain Production in Bangladesh," 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia 5987, Australian Agricultural and Resource Economics Society.
    10. Martine Audibert, 1997. "Technical Inefficiency Effects Among Paddy Farmers in the Villages of the ‘Office du Niger’, Mali, West Africa," Journal of Productivity Analysis, Springer, vol. 8(4), pages 379-394, November.
    11. Aly, Hassan Y. & Shields, Michael P., 1999. "Privatization and surplus labor in the Egyptian textile industry," Economics Letters, Elsevier, vol. 63(2), pages 187-191, May.
    12. Kalaitzandonakes, N.G., 1992. "Farm Efficiency and Education: A Reconsideration," WAEA/ WFEA Conference Archive (1929-1995) 321387, Western Agricultural Economics Association.
    13. Barber, David L. & Byrne, Patrick J., 1997. "U.S. Chain Restaurant Efficiency," Journal of Food Distribution Research, Food Distribution Research Society, vol. 28(3), pages 1-9, October.
    14. D. L. Neff & P. Garcia & C. H. Nelson, 1993. "Technical Efficiency: A Comparison Of Production Frontier Methods," Journal of Agricultural Economics, Wiley Blackwell, vol. 44(3), pages 479-489, September.
    15. Rejesus, Roderick M. & Heisey, Paul W. & Smale, Melinda, 1999. "Sources of Productivity Growth in Wheat: A Review of Recent Performance and Medium- to Long-Term Prospects," Economics Working Papers 7693, CIMMYT: International Maize and Wheat Improvement Center.

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