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Farm Size, Productivity, And Economic Efficiency: Accounting For Differences In Efficiency Of Farms By Size In Honduras

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  • Gilligan, Daniel O.

Abstract

The farm size-productivity relationship is tested using nonparametric efficiency measures based on distance functions. This approach to efficiency measurement is less restrictive and more informative than alternative methods. For a group of Honduran farms, diminishing returns to scale render smaller farms more economically efficient overall, despite the relative technical efficiency of larger farms.

Suggested Citation

  • Gilligan, Daniel O., 1998. "Farm Size, Productivity, And Economic Efficiency: Accounting For Differences In Efficiency Of Farms By Size In Honduras," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20918, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea98:20918
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    File URL: http://purl.umn.edu/20918
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    References listed on IDEAS

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    1. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    2. Binswanger, Hans P. & Deininger, Klaus & Feder, Gershon, 1995. "Power, distortions, revolt and reform in agricultural land relations," Handbook of Development Economics,in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 42, pages 2659-2772 Elsevier.
    3. Chambers,Robert G., 1988. "Applied Production Analysis," Cambridge Books, Cambridge University Press, number 9780521314275.
    4. Frisvold, George B., 1994. "Does supervision matter? Some hypothesis tests using Indian farm-level data," Journal of Development Economics, Elsevier, vol. 43(2), pages 217-238, April.
    5. Carter, Michael R, 1984. "Identification of the Inverse Relationship between Farm Size and Productivity: An Empirical Analysis of Peasant Agricultural Production," Oxford Economic Papers, Oxford University Press, vol. 36(1), pages 131-145, March.
    6. Bhalla, Surjit S., 1988. "Does land quality matter? : Theory and measurement," Journal of Development Economics, Elsevier, vol. 29(1), pages 45-62, July.
    7. Bardhan, Pranab K, 1973. "Size, Productivity, and Returns to Scale: An Analysis of Farm-Level Data in Indian Agriculture," Journal of Political Economy, University of Chicago Press, vol. 81(6), pages 1370-1386, Nov.-Dec..
    8. Fare, Rolf & Shawna Grosskopf & Mary Norris & Zhongyang Zhang, 1994. "Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries," American Economic Review, American Economic Association, vol. 84(1), pages 66-83, March.
    9. Benjamin, Dwayne, 1995. "Can unobserved land quality explain the inverse productivity relationship?," Journal of Development Economics, Elsevier, vol. 46(1), pages 51-84, February.
    10. repec:mes:challe:v:31:y:1988:i:4:p:56-58 is not listed on IDEAS
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    Cited by:

    1. Cardenas, Gabriela & Vedenov, Dmitry V. & Houston, Jack E., 2005. "Analysis of Production Efficiency of Mexican Coffee-Producing Districts," 2005 Annual meeting, July 24-27, Providence, RI 19470, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Rios, Ana R. & Masters, William A. & Shively, Gerald E., 2008. "Linkages between Market Participation and Productivity: Results from a Multi-Country Farm Household Sample," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6145, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Gonzalez, Maria A. & Lopez, Rigoberto A., 2003. "Market-Based Land Reform And Farm Efficiency In Colombia: A Dea Approach," 2003 Annual meeting, July 27-30, Montreal, Canada 22202, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Rios, Ana R. & Shively, Gerald E., 2005. "Farm size and nonparametric efficiency measurements for coffee farms in Vietnam," 2005 Annual meeting, July 24-27, Providence, RI 19159, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Rios, Ana R. & Shively, Gerald E. & Masters, William A., 2009. "Farm Productivity and Household Market Participation: Evidence from LSMS Data," 2009 Conference, August 16-22, 2009, Beijing, China 51031, International Association of Agricultural Economists.

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