IDEAS home Printed from https://ideas.repec.org/a/ags/remaae/12247.html
   My bibliography  Save this article

Relative Economic Efficiency in the Australian Grazing Industry

Author

Listed:
  • Lawrence, Denis
  • Hone, Phillip

Abstract

The Lau and Yotopoulos restricted profit function methodology for testing for differences in economic efficiency and its components of allocative and technical efficiency is applied to data from grazing properties in the High Rainfall Zone of New South Wales. Tests are made on the basis of property size and operator's age. Larger farms are found to be significantly more economically efficient than smaller farms. The range of data considered in this study is found to exhibit constant returns to scale. Operator's age is found to have no effect on economic, allocative or technical efficiency and both younger and older operators are found to allocate variable inputs optimally. Finally, the usefulness of the methodology for examining issues related to economic efficiency in the Australian agricultural sector is assesed.

Suggested Citation

  • Lawrence, Denis & Hone, Phillip, 1981. "Relative Economic Efficiency in the Australian Grazing Industry," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 49(01), pages 1-17, April.
    • Handle: RePEc:ags:remaae:12247
    DOI: 10.22004/ag.econ.12247
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/12247/files/49010007.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.12247?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Lau, Lawrence J & Yotopoulos, Pan A, 1971. "A Test for Relative Efficiency and Application to Indian Agriculture," American Economic Review, American Economic Association, vol. 61(1), pages 94-109, March.
    2. Sidhu, Surjit S, 1974. "Relative Efficiency in Wheat Production in the Indian Punjab," American Economic Review, American Economic Association, vol. 64(4), pages 742-751, September.
    3. Lawrence, Denis & McKay, Lloyd, 1980. "Inputs, Outputs And Productivity Change In The Australian Sheep Industry," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 24(01), pages 1-14, April.
    4. Trosper, Ronald L, 1978. "American Indian Relative Ranching Efficiency," American Economic Review, American Economic Association, vol. 68(4), pages 503-516, September.
    5. Surjit S. Sidhu & Carlos A. Baanante, 1979. "Farm-Level Fertilizer Demand for Mexican Wheat Varieties in the Indian Punjab," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(3), pages 455-462.
    6. Denis Lawrence & Lloyd McKay, 1980. "Inputs, Outputs And Productivity Change In The Australian Sheep Industry," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 24(1), pages 46-59, April.
    7. Mahmood H. Khan & Dennis R. Maki, 1979. "Effects of Farm Size on Economic Efficiency: The Case of Pakistan," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(1), pages 64-69.
    8. Atkinson, Scott E & Halvorsen, Robert, 1980. "A Test of Relative and Absolute Price Efficiency in Regulated Utilities," The Review of Economics and Statistics, MIT Press, vol. 62(1), pages 81-88, February.
    9. Byron, R P, 1970. "The Restricted Aitken Estimation of Sets of Demand Relations," Econometrica, Econometric Society, vol. 38(6), pages 816-830, November.
    10. Yotopoulos, Pan A & Lau, Lawrence J, 1973. "A Test for Relative Economic Efficiency: Some Further Results," American Economic Review, American Economic Association, vol. 63(1), pages 214-223, March.
    11. McKay, Lloyd & Lawrence, Denis & Vlastuin, Chris, 1980. "Input Demand and Substitution in the Australian Sheep Industry," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 48(02), pages 1-14, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kivanda, Lena & Fox, Glenn, 1993. "Falsification and the Practice of Agricultural Production Economists: A Methodological Assessment," Department of Agricultural Economics and Business 258724, University of Guelph.
    2. I. Fraser & W. Horrace, 2003. "Technical Efficiency of Australian Wool Production: Point and Confidence Interval Estimates," Journal of Productivity Analysis, Springer, vol. 20(2), pages 169-190, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alene, Arega D. & Manyong, Victor M. & Omanya, Gospel O. & Mignouna, Hodeba D. & Bokanga, Mpoko & Odhiambo, George D., 2008. "Economic Efficiency and Supply Response of Women as Farm Managers: Comparative Evidence from Western Kenya," World Development, Elsevier, vol. 36(7), pages 1247-1260, July.
    2. Adesina, Akinwumi A. & Djato, Kouakou K., 1996. "Farm size, relative efficiency and agrarian policy in Cote d'Ivoire: profit function analysis of rice farms," Agricultural Economics, Blackwell, vol. 14(2), pages 93-102, July.
    3. Adesina, Akinwumi A. & Djato, Kouakou K., 1997. "Relative efficiency of women as farm managers: Profit function analysis in Cote d'Ivoire," Agricultural Economics, Blackwell, vol. 16(1), pages 47-53, March.
    4. John C. Quiggin & Anh Bui‐Lan, 1984. "The Use Of Cross‐Sectional Estimates Of Profit Functions For Tests Of Relative Efficiency: A Critical Review," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 28(1), pages 44-55, April.
    5. Munir Ahmad & Sarfraz Khan Qureshi, 1999. "Recent Evidence on Farm Size and Land Productivity: Implications for Public Policy," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 38(4), pages 1135-1153.
    6. McKay, Lloyd & Lawrence, Denis & Vlastuin, Chris, 1980. "Input Demand and Substitution in the Australian Sheep Industry," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 48(02), pages 1-14, August.
    7. Daniel R. HOLLAS & Stanley R. STANSELL, 1994. "The Economic Efficiency Of Public Vs. Private Gas Distribution Utilities," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 65(2), pages 281-300, April.
    8. McKay, Lloyd & Lawrence, Denis & Vlastuin, Chris, 1982. "Production Flexibility and Technical Change in Australia's Wheat-Sheep Zone," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 50(01), pages 1-18, April.
    9. Radha R. Ashrit, 2023. "Estimation of technical efficiency of Indian farms for major crops during 2013–2014 and 2017–2018: a stochastic Frontier production approach," SN Business & Economics, Springer, vol. 3(2), pages 1-32, February.
    10. Burki, Abid A. & Khan, Mahmood-ul-Hasan, 2004. "Effects of allocative inefficiency on resource allocation and energy substitution in Pakistan's manufacturing," Energy Economics, Elsevier, vol. 26(3), pages 371-388, May.
    11. Martin, John F., 1982. "Induced Innovation in the High Rainfall Zone," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 50(03), pages 1-20, December.
    12. Bagi, Faqir Singh, 1985. "Estimation Of Economic And Allocative Efficiencies Relative To Stochastic Frontier Profit Function," 1985 Annual Meeting, August 4-7, Ames, Iowa 278504, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    13. Daniel R. Hollas & Stanley R. Stansell, 1991. "Regulation, Ownership Form, And The Economic Efficiency Of Rural Electric Distribution Cooperatives," The Review of Regional Studies, Southern Regional Science Association, vol. 21(2), pages 201-220, Summer.
    14. Meena, P.C. & Kumar, P. & Reddy, G.P., 2010. "Factor Demand and Output Supply of Wheat in Western India," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 65(4), pages 1-8.
    15. Mosheim, Roberto & Lovell, C.A. Knox, 2006. "Economic Efficiency, Structure and Scale Economies in the U.S. Dairy Sector," 2006 Annual meeting, July 23-26, Long Beach, CA 21440, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    16. Villano, Renato A. & Fleming, Euan M. & Farrell, Terence C. & Fleming, Pauline, 2006. "Productivity Change in the Australian Sheep Industry Revisited," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25593, International Association of Agricultural Economists.
    17. Marthin G Nanere & Iain Fraser, 2001. "Total Factor Productivity as a Measure of Weak Sustainability," Working Papers 2001.03, School of Economics, La Trobe University.
    18. W. Cooper & C. Lovell, 2011. "History lessons," Journal of Productivity Analysis, Springer, vol. 36(2), pages 193-200, October.
    19. Huang, Qiuqiong & Rozelle, Scott & Lohmar, Bryan & Huang, Jikun & Wang, Jinxia, 2006. "Irrigation, agricultural performance and poverty reduction in China," Food Policy, Elsevier, vol. 31(1), pages 30-52, February.
    20. Yang, Dennis Tao & An, Mark Yuying, 2002. "Human capital, entrepreneurship, and farm household earnings," Journal of Development Economics, Elsevier, vol. 68(1), pages 65-88, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:remaae:12247. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaresea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.