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Technical efficiency of Kansas arable crop farms: a local maximum likelihood approach

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  • Guesmi, Bouali
  • Serra, Teresa
  • Featherstone, Allen M.

Abstract

The present study uses local maximum likelihood (LML) methods recently proposed by Kumbhakar et al. (2007) to assess the technical efficiency of arable crop Kansas farms. LML techniques overcome the most relevant limitations associated to mainstream parametric stochastic frontier models. Results suggest that Kansas farms reach technical efficiency levels on the order of 90%. These results are compared with another flexible efficiency assessment alternative: the deterministic data envelopment analysis (DEA).

Suggested Citation

  • Guesmi, Bouali & Serra, Teresa & Featherstone, Allen M., 2013. "Technical efficiency of Kansas arable crop farms: a local maximum likelihood approach," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 147488, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea13:147488
    DOI: 10.22004/ag.econ.147488
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    More about this item

    Keywords

    Crop Production/Industries; Production Economics; Productivity Analysis;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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