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On Sources of Measured Technical Efficiency: The Impact of Information

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  • Jürgen Müller

Abstract

The concept of technical efficiency differences—different levels of output with identical levels of input—is unsatisfactory from a production theoretic point of view. In this paper a model is developed in which differences in non-conventional inputs and especially information obtained by managers may explain productivity differences between firms. Estimation of the underlying production structure (of a sample of California dairy farms) via a modified non-homothetic Cobb-Douglas production function shows the specific impact of information within the neoclassical production framework. This is conceptually and analytically superior to the methodology of frontier production functions.

Suggested Citation

  • Jürgen Müller, 1974. "On Sources of Measured Technical Efficiency: The Impact of Information," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(4), pages 730-738.
    • Handle: RePEc:oup:ajagec:v:56:y:1974:i:4:p:730-738.
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    File URL: http://hdl.handle.net/10.2307/1239302
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    Cited by:

    1. F. S. Bagi, 1981. ""Economics of Share-Cropping in Haryana (India) Agriculture" - Rejoinder," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 20(4), pages 453-464.
    2. Ali, Mubarik, 1996. "Quantifying the socio-economic determinants of sustainable crop production: an application to wheat cultivation in the Tarai of Nepal," Agricultural Economics, Blackwell, vol. 14(1), pages 45-60, April.
    3. Nathan D. DeLay & Nathanael M. Thompson & James R. Mintert, 2022. "Precision agriculture technology adoption and technical efficiency," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(1), pages 195-219, February.
    4. Gabriela Pérez Quesada, 2017. "Technical efficiency of dairy farms in Uruguay: a stochastic production frontier analysis," Documentos de Trabajo (working papers) 0517, Department of Economics - dECON.
    5. Bagi, Faqir Singh, 1983. "A Logit Model Of Farmers' Decisions About Credit," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 15(2), pages 1-7, December.
    6. Chen, Adam Zhuo & Huffman, Wallace E. & Rozelle, Scott, 2003. "Technical Efficiency of Chinese Grain Production: A Stochastic Production Frontier Approach," 2003 Annual meeting, July 27-30, Montreal, Canada 271497, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Szmedre, Philip I. & Wetzstein, Michael E. & McClendon, Ronald W., 1988. "Production Decision licking in an Adaptive Mode," 1988 Annual Meeting, August 1-3, Knoxville, Tennessee 270189, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. A. Parikh & K. Shah, 1994. "Measurement Of Technical Efficiency In The North‐West Frontier Province Of Pakistan," Journal of Agricultural Economics, Wiley Blackwell, vol. 45(1), pages 132-138, January.
    9. Paul Wilson & Dave Hadley & Stephen Ramsden & Ioannis Kaltsas, 1998. "Measuring and Explaining Technical Efficiency in UK Potato Production," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(3), pages 294-305, September.
    10. Amirul Islam & Ruhul Salim & Harry Bloch, 2016. "Does Regional Integration Affect Efficiency And Productivity Growth? Empirical Evidence From South Asia," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 28(2), pages 107-122, July.
    11. Udaya Nagothu & M. Muralidhar & M. Kumaran & B. Muniyandi & N. Umesh & K. Prasad & Sena De Silva, 2012. "Climate Change and Shrimp Farming in Andhra Pradesh, India: Socio-economics and Vulnerability," Energy and Environment Research, Canadian Center of Science and Education, vol. 2(2), pages 137-137, December.
    12. Ortmann, Gerald F. & Nothard, B.W. & Meyer, E., 2005. "Attributes of small-scale sugarcane contractors that influence their service quality in KwaZulu-Natal," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 44(3), pages 1-21, September.

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