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Human and Social Capital Characteristics Near the Frontier of Production Technology

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  • Martin, Michael J.
  • Taylor, Timothy G.

Abstract

This paper presents insights into how human and social capital factors improve production efficiency in impoverished rural areas. A stochastic frontier production function is estimated for over 400 Honduran maize producers. Deubreu-Farrell technical and allocative measures are calculated relative to the observed "best practice" production frontier. Group means compare efficiencies by various socioeconomic characteristics that are intuitively related to production, but have not yet been examined. Efficiency is positively related to proportion of output marketed, education, health and experience. Personal extension assistance also improves efficiency, and farmers with no extension assistan,ce are noticeably inefficient. Religion shows mixed effects on efficiency.

Suggested Citation

  • Martin, Michael J. & Taylor, Timothy G., 1997. "Human and Social Capital Characteristics Near the Frontier of Production Technology," International Working Paper Series 239268, University of Florida, Food and Resource Economics Department.
    • Handle: RePEc:ags:ufliwp:239268
    DOI: 10.22004/ag.econ.239268
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    References listed on IDEAS

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