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Beyond benchmarks: DEA study of Kansas Farm Productivity

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  • Quintana-Ashwell, Nicolas E.
  • Featherstone, Allen M.

Abstract

This paper investigates productivity growth as measured by the Malmquist productivity index (MPI) among a sample of 331 Kansas farms between the years 1993 and 2011. The MPI index is decomposed to explore the main sources of productivity growth. Technical change (TC) is found to be the main driver of productivity growth. Previous literature cites relative prices as influential factors affecting technical change and efficiency. Two-way fixed effect regressions of efficiency and productivity measures on relative prices and lagged productivity are conducted. It is shown that past performance is a significant determinant in productivity, while statistical significance of different input and output prices vary. It is suggested that the direction of influence may be the opposite as cited in previous literature, so that past productivity improvements, and associated farm profitability, results in increased input prices.

Suggested Citation

  • Quintana-Ashwell, Nicolas E. & Featherstone, Allen M., 2014. "Beyond benchmarks: DEA study of Kansas Farm Productivity," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196857, Southern Agricultural Economics Association.
  • Handle: RePEc:ags:saea15:196857
    DOI: 10.22004/ag.econ.196857
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    References listed on IDEAS

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    1. Pooran Lall & Allen Featherstone & David Norman, 2002. "Productivity Growth in the Western Hemisphere (1978–94): The Caribbean in Perspective," Journal of Productivity Analysis, Springer, vol. 17(3), pages 213-231, May.
    2. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity," Econometrica, Econometric Society, vol. 50(6), pages 1393-1414, November.
    3. Ariyaratne, Chatura B. & Featherstone, Allen M. & Langemeier, Michael R., 2006. "What Determines Productivity Growth of Agricultural Cooperatives?," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 38(1), pages 47-59, April.
    4. Tim J. Coelli & D. S. Prasada Rao, 2005. "Total factor productivity growth in agriculture: a Malmquist index analysis of 93 countries, 1980–2000," Agricultural Economics, International Association of Agricultural Economists, vol. 32(s1), pages 115-134, January.
    5. V. Eldon Ball & Jean-Christophe Bureau & Richard Nehring & Agapi Somwaru, 1997. "Agricultural Productivity Revisited," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1045-1063.
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    Cited by:

    1. Pokharel, Krishna & Featherstone, Allen, 2016. "Examining the Productivity Growth of Agricultural Cooperatives," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236273, Agricultural and Applied Economics Association.
    2. Quintana Ashwell, Nicolas E. & Peterson, Jeffrey M. & Hendricks, Nathan P., 2018. "Optimal groundwater management under climate change and technical progress," Resource and Energy Economics, Elsevier, vol. 51(C), pages 67-83.
    3. Quintana-Ashwell, Nicolas E. & Peterson, Jeffrey M., 2015. "Aquifer Depletion in the face of Climate Change and Technical Progress," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205882, Agricultural and Applied Economics Association.

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    Keywords

    Production Economics; Productivity Analysis;

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