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Allocation Efficiency in a Traditional Indian Agriculture

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  • W. David Hopper

Abstract

The hypothesis that Indian cultivators who use traditional technology make rational profit maximizing allocations of factors was tested by observation of the allocation of four major inputs to four production alternatives for 43 farms in north central India. The measurements were made during the peak period of agricultural activity when factor-product allocations are truly competitive. Production functions were determined and the implicit marginal product of each factor and the implicit value of each product were calculated at the mean levels of input and expected output. The calculated relative prices implicit in the factor-product allocations conformed, within error limits, to expectations of profit maximizing behavior derived from a static neoclassical model. When the calculated relative implicit product prices were expanded to the market price level, they were in close correspondence with prices prevailing in the local market town.

Suggested Citation

  • W. David Hopper, 1965. "Allocation Efficiency in a Traditional Indian Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 47(3), pages 611-624.
    • Handle: RePEc:oup:ajagec:v:47:y:1965:i:3:p:611-624.
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    Cited by:

    1. Dessing, Maryke, 2002. "Labor supply, the family and poverty: the S-shaped labor supply curve," Journal of Economic Behavior & Organization, Elsevier, vol. 49(4), pages 433-458, December.
    2. Hussain, Anwar, 1991. "Resource Use, Efficiency, And Returns To Scale In Pakistan: A Case Study Of The Peshawar Valley," Staff Papers 13627, University of Minnesota, Department of Applied Economics.
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    13. José Solana‐Ibáñez & Manuel Caravaca‐Garratón, 2021. "Stakeholder engagement and corporate social reputation: The influence of exogenous factors on efficiency performance (stakeholder engagement and exogenous factors): Stakeholder engagement and exogenou," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(6), pages 1891-1905, November.
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    17. W. Cooper & C. Lovell, 2011. "History lessons," Journal of Productivity Analysis, Springer, vol. 36(2), pages 193-200, October.
    18. Kanter, Christopher A. & Hueth, Brent & Gould, Brian W., 2013. "A Comparative Efficiency Analysis of Cooperative and Non-cooperative Dairy Manufacturing Firms," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150497, Agricultural and Applied Economics Association.
    19. Lass, Daniel A. & Gempesaw, Conrado M., II, 1992. "Estimation Of Firm-Varying, Input-Specific Efficiencies In Dairy Production," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 21(2), pages 1-9, October.
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    22. A Saravanan, 2022. "An Economic Analysis of Technical Efficiency of Paddy Cultivation of Erode District in Tamil Nadu," Shanlax International Journal of Economics, Shanlax Journals, vol. 10(2), pages 1-11, March.
    23. Sauer, J. & Mendoza-Escalante, A., 2008. "Farming in the Eastern Amazon – Poor but Allocatively Efficient," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 43, March.

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