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Market Assisted Land Reform In Ne Brazil: A Stochastic Frontier Production Efficiency Evaluation

Author

Listed:
  • Hildo Meirelles de Souza Filho
  • Miguel Rocha de Sousa
  • Antônio Márcio Buainain
  • José Maria da Silveira
  • Marcelo Marques Magalhães

Abstract

We evaluate the "Cédula da Terra" Pilot Project, a land reform project whose conception, mechanisms and operational structure is different from traditional agrarian reform based on expropriation. The land distributed by the project, is first acquired by the agricultural producers associations, and a given set of incentives is established to obtain a better efficiency use of resources. The main objective of this article is to characterize the sources of technical and allocative inefficiency from a cross section of 309 beneficiaries from five states in NE Brazil. We estimated a potential production frontier following the methodology of BATTESE and COELLI (1995), using the software FRONTIER 4.1. (Tim COELLI, 1996). The main conclusion is that technical assistance, human capital (years of schooling) and better access to credit reduce inefficiency, or thus increase technical and allocative efficiency of the beneficiaries.

Suggested Citation

  • Hildo Meirelles de Souza Filho & Miguel Rocha de Sousa & Antônio Márcio Buainain & José Maria da Silveira & Marcelo Marques Magalhães, 2004. "Market Assisted Land Reform In Ne Brazil: A Stochastic Frontier Production Efficiency Evaluation," Anais do XXXII Encontro Nacional de Economia [Proceedings of the 32th Brazilian Economics Meeting] 109, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
  • Handle: RePEc:anp:en2004:109
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    File URL: http://www.anpec.org.br/encontro2004/artigos/A04A109.pdf
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    1. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-332.
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    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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