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Estimation and decomposition of technical efficiency for sugarbeet farms

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  • Shunxiang Wu
  • Stephen Devadoss
  • Yaochi Lu

Abstract

This study computes technical efficiency for Idaho sugarbeet farms and decomposes it into pure technical efficiency, scale efficiency, and congestion efficiency using nonparametric procedures. The results indicate that the average efficiency is 0.88 with 45% of the farms in the sample exhibiting full efficiency. Improper scale operation and input overutilization are the major sources of inefficiency for remaining farms. Technical efficiency is independent of farm size. A Tobit model was used to examine the impacts of variables such as farm size, specialization, tenancy position, hired labour, location, and managerial ability on efficiency. Inefficiency in sugarbeet production results in a shortfall of potential revenues not only for producers, but also for landlords and processors.

Suggested Citation

  • Shunxiang Wu & Stephen Devadoss & Yaochi Lu, 2003. "Estimation and decomposition of technical efficiency for sugarbeet farms," Applied Economics, Taylor & Francis Journals, vol. 35(4), pages 471-484.
    • Handle: RePEc:taf:applec:v:35:y:2003:i:4:p:471-484
    DOI: 10.1080/00036840210161819
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    Cited by:

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    3. Njuki, Eric & Bravo-Ureta, Boris E., 2016. "Climatic Variability and Irrigation Water Efficiency in the United States: An Empirical Assessment of the 1987-2012 Period," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235555, Agricultural and Applied Economics Association.
    4. Geys, Benny & Moesen, Wim, 2008. "Measuring local government technical (in)efficiency: An application and comparison of FDH, DEA and econometric approaches," Discussion Papers, Research Unit: Market Processes and Governance SP II 2008-21, WZB Berlin Social Science Center.
    5. Kelvin Balcombe & Iain Fraser & Laure Latruffe & Mizanur Rahman & Laurence Smith, 2008. "An application of the DEA double bootstrap to examine sources of efficiency in Bangladesh rice farming," Applied Economics, Taylor & Francis Journals, vol. 40(15), pages 1919-1925.
    6. Boris Bravo-Ureta & Daniel Solís & Víctor Moreira López & José Maripani & Abdourahmane Thiam & Teodoro Rivas, 2007. "Technical efficiency in farming: a meta-regression analysis," Journal of Productivity Analysis, Springer, vol. 27(1), pages 57-72, February.
    7. Wu, Shunxiang & Prato, Anthony A., 2006. "Cost Efficiency and Scope Economies of Crop and Livestock Farms in Missouri," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(3), pages 1-15, December.
    8. Kent Olson & Linh Vu, 2009. "Economic efficiency in farm households: trends, explanatory factors, and estimation methods," Agricultural Economics, International Association of Agricultural Economists, vol. 40(5), pages 587-599, September.
    9. Lahcen Achy & Samy Ben Naceur & Adel Ben Youssef & Samir Ghazouani, 2010. "Restructuring and Efficiency in the Manufacturing Sector: A Firm Level Approach Applied to Morocco," Working Papers 565, Economic Research Forum, revised 11 Jan 2010.

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