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Measuring the Degree and Isolating Determinants of technical and Allocative Efficiency of Wheat Farmers in the Indian Village of Palanpur

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  • Croppenstedt, Andre

Abstract

Using the concept of the stochastic frontier production function we estimate indices of technical and allocative efficiency for a sample of wheat farmers. These indices are used to derive an index of profit efficiency. The results show a substantial degree of both technical and allocative inefficiency. However technical inefficiency accounts for most of the loss in profits. The analysis is extended by isolating determinants of technical and allocative inefficiency. For the former we found good farming practice and credit availability to be important explanatory variables. With respect to allocative efficiency the determinants for some of the inputs were caste membership, acreage and farmer and plot specific characteristics

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  • Croppenstedt, Andre, 1994. "Measuring the Degree and Isolating Determinants of technical and Allocative Efficiency of Wheat Farmers in the Indian Village of Palanpur," The Warwick Economics Research Paper Series (TWERPS) 421, University of Warwick, Department of Economics.
    • Handle: RePEc:wrk:warwec:421
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