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An Analysis Of Economic Efficiency In Agriculture: A Nonparametric Approach

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  • Chavas, Jean-Paul
  • Aliber, Michael

Abstract

A nonparametric analysis of technical, allocative, scale, and scope efficiency of agricultural production is presented based on a sample of Wisconsin farmers. The results indicate the existence of important economies of scale on very small farms, and of some diseconomies of scale for the larger farms. Also, it is found that most farms exhibit substantial economies of scope, but that such economies tend to decline sharply with the size of the enterprises. Finally, the empirical evidence suggests significant linkages between the financial structure of the farms and their economic efficiency.

Suggested Citation

  • Chavas, Jean-Paul & Aliber, Michael, 1993. "An Analysis Of Economic Efficiency In Agriculture: A Nonparametric Approach," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 18(1), pages 1-16, July.
    • Handle: RePEc:ags:jlaare:30811
    DOI: 10.22004/ag.econ.30811
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    Farm Management; Industrial Organization;

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