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Farm Household Production Efficiency: Evidence from The Gambia

  • Jean-Paul Chavas
  • Ragan Petrie
  • Michael Roth

This article investigates the economic efficiency of farm households, with an application to The Gambia. The efficiency analysis is conducted not at the farm level but at the household level, thus capturing the importance of off-farm activities. Output-based measures of technical, allocative, and scale efficiency are generated using nonparametric measurements. An econometric analysis of factors affecting the efficiency indexes is then conducted using a Tobit model. Technical efficiency is fairly high indicating that access to technology is not a severe constraint for most farm households. The cost of scale inefficiency is modest. Allocative inefficiency by contrast is found to be important for the majority of farm households. On the basis of the Tobit results, imperfections in markets for financial capital and nonfarm employment contribute to significant allocative inefficiency. Copyright 2005, Oxford University Press.

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File URL: http://hdl.handle.net/10.1111/j.0002-9092.2005.00709.x
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Article provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 87 (2005)
Issue (Month): 1 ()
Pages: 160-179

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Handle: RePEc:oup:ajagec:v:87:y:2005:i:1:p:160-179
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  1. Chavas, Jean-Paul & Aliber, Michael, 1993. "An Analysis Of Economic Efficiency In Agriculture: A Nonparametric Approach," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 18(01), July.
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  14. Seyoum, E. T. & Battese, G. E. & Fleming, E. M., 1998. "Technical efficiency and productivity of maize producers in eastern Ethiopia: a study of farmers within and outside the Sasakawa-Global 2000 project," Agricultural Economics, Blackwell, vol. 19(3), pages 341-348, December.
  15. Adesina, Akinwumi A. & Djato, Kouakou K., 1996. "Farm size, relative efficiency and agrarian policy in Cote d'Ivoire: profit function analysis of rice farms," Agricultural Economics, Blackwell, vol. 14(2), pages 93-102, July.
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