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Sources of Inefficiency in Kansas Farms

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  • Andreu, Monica Lopez
  • Grunewald, Orlen C.

Abstract

This paper uses two different techniques to measure efficiency in a panel of two hundred multi-product Kansas farms from the period 1984 to 2004. The non-parametric linear programming technique, Data Envelopment Analysis (DEA); and a parametric stochastic frontier approach, a translog production function, are used to calculate and then compare efficiencies measures including pure efficiency, technical, scale and allocative. Production, financial, and demographic variables are used to identify and quantify the causes of inefficiencies. We expect to find variables such as hours of family labor, owned versus rented farm, intensity of production, farmers´ risk attitudes and farmers´ age, significant in explaining farm inefficiency levels in Kansas farms.

Suggested Citation

  • Andreu, Monica Lopez & Grunewald, Orlen C., 2006. "Sources of Inefficiency in Kansas Farms," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35283, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saeaso:35283
    DOI: 10.22004/ag.econ.35283
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    References listed on IDEAS

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    3. Catherine J. Morrison Paul & Warren E. Johnston & Gerald A. G. Frengley, 2000. "Efficiency in New Zealand Sheep and Beef Farming: The Impacts of Regulatory Reform," The Review of Economics and Statistics, MIT Press, vol. 82(2), pages 325-337, May.
    4. Bravo-Ureta, Boris E. & Pinheiro, António E., 1993. "Efficiency Analysis of Developing Country Agriculture: A Review of the Frontier Function Literature," Agricultural and Resource Economics Review, Cambridge University Press, vol. 22(1), pages 88-101, April.
    5. Battese, George E., 1992. "Frontier production functions and technical efficiency: a survey of empirical applications in agricultural economics," Agricultural Economics, Blackwell, vol. 7(3-4), pages 185-208, October.
    6. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-332.
    7. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
    8. Hadley, David & Shankar, Bhavani & Thirtle, Colin G. & Coelli, Tim J., 2001. "Financial Exposure, Technical Change And Farm Efficiency: Evidence From The England And Wales Dairy Sector," 2001 Annual meeting, August 5-8, Chicago, IL 20656, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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    Cited by:

    1. Manjunatha, A.V. & Speelman, Stijn & Van Huylenbroeck, Guido & Chandrakanth, Mysore G., 2009. "Impact of groundwater markets in peninsular India on water use efficiency: A Data Envelopment Analysis approach," 2009 Conference, August 16-22, 2009, Beijing, China 50624, International Association of Agricultural Economists.
    2. Chandrasekar, V. & Gopal, N., 2015. "Economic Efficiency of Ring Seiners Operated off Munambam Coast of Kerala Using Data Envelopment Analysis," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 28(1).
    3. Madau, Fabio A., 2011. "Parametric Estimation of Technical and Scale Efficiencies in Italian Citrus Farming," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 12(1).

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    Keywords

    Farm Management;

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