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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: http://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. 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.
    3. 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.
    4. 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.
    5. 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.
    6. Anderson, Jock R. & Feder, Gershon, 2003. "Rural extension services," Policy Research Working Paper Series 2976, The World Bank.
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    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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