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A comparison of the efficiency of producers under collective and individual modes of organisation

Author

Listed:
  • Michael Martin
  • Timothy G. Taylor

    (USAID)

Abstract

This paper compares collective and individual production systems’ technical and allocative efficiency. The producers being studied belong to Honduran agrarian reform cooperatives engaging in collective and/or individual maize production. Debreu-Farrell technical efficiency related to stochastic production is calculated. Allocative efficiency is obtained from an analytically derived cost frontier. Results indicate that collective systems are slightly more efficient than individual production systems. Worker-shirking (one of the most cited theoretical arguments against collective forms of enterprise) would seem to have no empirical basis from these results

Suggested Citation

  • Michael Martin & Timothy G. Taylor, 2003. "A comparison of the efficiency of producers under collective and individual modes of organisation," Colombian Economic Journal, Academia Colombiana de Ciencias Economicas, Colegio Mayor de Nuestra Senora del Rosario, Pontificia Universidad Javeriana, Universidad de Antioquia, Universidad de los Andes, Universidad del Valle, Universidad Externado de Colombia, Universidad Nacional de Colombia, vol. 1(1), pages 245-266, December.
    • Handle: RePEc:cej:primer:v:1:y:2003:i:1:p:245-266
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    File URL: http://www.fce.unal.edu.co/cej/number1/9-Michel.pdf
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    More about this item

    Keywords

    cooperative; technical and allocative efficiencies; stochastic production frontier; cooperative enterprises;
    All these keywords.

    JEL classification:

    • P13 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Cooperative Enterprises

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