Exogenous Production Shocks And Technical Efficiency Among Traditional Ivorien Rice Farmers
This paper uses a unique panel data set and data envelopment analysis (DEA) to obtain estimates of technical efficiency for 492 traditional rice plots in Côte d'Ivoire. The objective of this paper is to explore the importance of explicitly controlling for exogenous shocks to production in technical efficiency estimation. We show how omission of such variables in highly stochastic production environments can lead to serious inferential errors, with potentially significant policy implications. Conventional DEA estimation of a production frontier, followed by second-stage Tobit estimation of the correlates of plot- level technical efficiency, suggest widespread and substantial inefficiency related to crop fragmentation and seed varieties. However, when one controls for unobserved groupwise cross-sectional and intertemporal heterogeneity and introduces measurable exogenous shocks into the second-stage estimation, managerial characteristics become jointly insignificant and state-conditional technical efficiency becomes nearly universal. The implication is that conventional technical efficiency estimates that refute the classic Schultzian "poor but efficient" hypothesis may be incorrect because they ignore farmers' vulnerability to adverse states of nature against which they cannot insure.
|Date of creation:||1998|
|Contact details of provider:|| Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202|
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
- Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-444, June.
- Christpher B. Barrett, 1997. "How credible are estimates of peasant allocative scale, or scope efficiency? A commentary," Journal of International Development, John Wiley & Sons, Ltd., vol. 9(2), pages 221-229.
When requesting a correction, please mention this item's handle: RePEc:ags:aaea98:20945. 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: (AgEcon Search)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 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.