IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v35y2003i4p471-484.html
   My bibliography  Save this article

Estimation and decomposition of technical efficiency for sugarbeet farms

Author

Listed:
  • Shunxiang Wu
  • Stephen Devadoss
  • Yaochi Lu

Abstract

This study computes technical efficiency for Idaho sugarbeet farms and decomposes it into pure technical efficiency, scale efficiency, and congestion efficiency using nonparametric procedures. The results indicate that the average efficiency is 0.88 with 45% of the farms in the sample exhibiting full efficiency. Improper scale operation and input overutilization are the major sources of inefficiency for remaining farms. Technical efficiency is independent of farm size. A Tobit model was used to examine the impacts of variables such as farm size, specialization, tenancy position, hired labour, location, and managerial ability on efficiency. Inefficiency in sugarbeet production results in a shortfall of potential revenues not only for producers, but also for landlords and processors.

Suggested Citation

  • Shunxiang Wu & Stephen Devadoss & Yaochi Lu, 2003. "Estimation and decomposition of technical efficiency for sugarbeet farms," Applied Economics, Taylor & Francis Journals, vol. 35(4), pages 471-484.
  • Handle: RePEc:taf:applec:v:35:y:2003:i:4:p:471-484
    DOI: 10.1080/00036840210161819
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840210161819
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bravo-Ureta, Boris E. & Lee, Tsoung-Chao, 1988. "Socioeconomic and Technical Characteristics of New England Dairy Cooperative Members and Nonmembers," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 3.
    2. Tauer, Loren W. & Hanchar, John J., 1995. "Nonparametric Technical Efficiency with K Firms, N Inputs, and M Outputs: A Simulation," Agricultural and Resource Economics Review, Cambridge University Press, vol. 24(02), pages 185-189, October.
    3. Devadoss, Stephen & Kropf, Jurgen, 1996. "Impacts of trade liberalizations under the Uruguay Round on the world sugar market," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 15(2), November.
    4. Alfons Weersink & Calum G. Turvey & Abdulahi Godah, 1990. "Decomposition Measures of Technical Efficiency for Ontario Dairy Farms," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 38(3), pages 439-456, November.
    5. Byrnes, Patricia, et al, 1987. "Technical Efficiency and Size: The Case of Illinois Grain Farms," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 14(4), pages 367-381.
    6. Bagi, Faqir Singh, 1982. "Relationship Between Farm Size And Technical Efficiency In West Tennessee Agriculture," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 14(02), December.
    7. Rowland, William W. & Langemeier, Michael R. & Schurle, Bryan W. & Featherstone, Allen M., 1998. "A Nonparametric Efficiency Analysis for a Sample of Kansas Swine Operations," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 30(01), pages 189-199, July.
    8. Bagi, Faqir Singh, 1982. "Relationship Between Farm Size and Technical Efficiency in West Tennessee Agriculture," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 14(02), pages 139-144, December.
    9. Featherstone, Allen M. & Langemeier, Michael R. & Ismet, Mohammad, 1997. "A Nonparametric Analysis of Efficiency for a Sample of Kansas Beef Cow Farms," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 29(01), pages 175-184, July.
    10. Forsund, Finn R. & Lovell, C. A. Knox & Schmidt, Peter, 1980. "A survey of frontier production functions and of their relationship to efficiency measurement," Journal of Econometrics, Elsevier, vol. 13(1), pages 5-25, May.
    11. Johnson, Jason L. & Zapata, Hector O. & Heagler, Arthur M., 1995. "Technical Efficiency in Louisiana Sugar Cane Processing," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 13(2).
    12. 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.
    13. Kumbhakar, Subal C & Ghosh, Soumendra & McGuckin, J Thomas, 1991. "A Generalized Production Frontier Approach for Estimating Determinants of Inefficiency in U.S. Dairy Farms," Journal of Business & Economic Statistics, American Statistical Association, vol. 9(3), pages 279-286, July.
    14. Devadoss, Stephen & Kropf, Jurgen, 1996. "Impacts of trade liberalizations under the Uruguay round on the world sugar market," Agricultural Economics, Blackwell, vol. 15(2), pages 83-96, November.
    15. Battese, George E., 1992. "Frontier production functions and technical efficiency: a survey of empirical applications in agricultural economics," Agricultural Economics, Blackwell, vol. 7(3-4), pages 185-208, October.
    16. Fernandez-Cornejo, Jorge, 1994. "Nonradial Technical Efficiency and Chemical Input Use in Agriculture," Agricultural and Resource Economics Review, Cambridge University Press, vol. 23(01), pages 11-21, April.
    17. Battese, George E., 1992. "Frontier production functions and technical efficiency: a survey of empirical applications in agricultural economics," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 7(3-4), October.
    18. 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.
    19. Fernandez-Cornejo, Jorge, 1994. "Nonradial Technical Efficiency And Chemical Input Use In Agriculture," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 23(1), April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Peter Nuthall, 2009. "Modelling the origins of managerial ability in agricultural production ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(3), pages 413-436, July.
    2. 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.
    3. Kent Olson & Linh Vu, 2009. "Economic efficiency in farm households: trends, explanatory factors, and estimation methods," Agricultural Economics, International Association of Agricultural Economists, vol. 40(5), pages 587-599, September.
    4. Njuki, Eric & Bravo-Ureta, Boris E., 2016. "Climatic Variability and Irrigation Water Efficiency in the United States: An Empirical Assessment of the 1987-2012 Period," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235555, Agricultural and Applied Economics Association.
    5. Geys, Benny & Moesen, Wim, 2008. "Measuring local government technical (in)efficiency: An application and comparison of FDH, DEA and econometric approaches," Discussion Papers, Research Unit: Market Processes and Governance SP II 2008-21, Social Science Research Center Berlin (WZB).
    6. Lahcen Achy & Samy Ben Naceur & Adel Ben Youssef & Samir Ghazouani, 2010. "Restructuring and Efficiency in the Manufacturing Sector: A Firm Level Approach Applied to Morocco," Working Papers 565, Economic Research Forum, revised 11 Jan 2010.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:35:y:2003:i:4:p:471-484. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.