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Returns to Managerial Ability: Dairy Farms in Argentina

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  • Marcos Gallacher

Abstract

Most studies analyzing the impact of human capital in agriculture use the measure of years of schooling of the producer as a proxy for decision-making skills. An alternative measure is used in this paper. The measure was derived by “grading” decision-making and execution skills of a sample of farmers. Grades were assigned by farm advisors knowledgeable of each farm and producer characteristics. Assigned grades were then used in a production-function context in order to estimate the impact of management skills on firm-level results. A very significant impact of these skills on production efficiency and firm results was found.

Suggested Citation

  • Marcos Gallacher, 2011. "Returns to Managerial Ability: Dairy Farms in Argentina," CEMA Working Papers: Serie Documentos de Trabajo. 478, Universidad del CEMA.
    • Handle: RePEc:cem:doctra:478
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    File URL: https://www.ucema.edu.ar/publicaciones/download/documentos/478.pdf
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    References listed on IDEAS

    as
    1. Huffman, Wallace E, 1980. "Farm and Off-Farm Work Decisions: The Role of Human Capital," The Review of Economics and Statistics, MIT Press, vol. 62(1), pages 14-23, February.
    2. Gallacher, Marcos & Goetz, Stephan J. & Debertin, David L., 1994. "Managerial form, ownership and efficiency: a case-study of Argentine agriculture," Agricultural Economics, Blackwell, vol. 11(2-3), pages 289-299, December.
    3. Schultz, Theodore W, 1975. "The Value of the Ability to Deal with Disequilibria," Journal of Economic Literature, American Economic Association, vol. 13(3), pages 827-846, September.
    4. Boris E. Bravo-ureta, 2002. "Research, Extension, and Information: Key Inputs in Agricultural Productivity Growth," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 41(4), pages 443-473.
    5. Anderson, Jock R. & Feder, Gershon, 2003. "Rural extension services," Policy Research Working Paper Series 2976, The World Bank.
    6. Fane, George, 1975. "Education and the Managerial Efficiency of Farmers," The Review of Economics and Statistics, MIT Press, vol. 57(4), pages 452-461, November.
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    Cited by:

    1. Marcos Gallacher, 2020. "The human factor in Argentine agriculture," CEMA Working Papers: Serie Documentos de Trabajo. 746, Universidad del CEMA.

    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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