TY - JOUR
T1 - Estimation and decomposition of technical efficiency for sugarbeet farms
AU - Wu, Shunxiang
AU - Devadoss, Stephen
AU - Lu, Yaochi
N1 - Funding Information:
ACKNOWLEDGEMENTS The authors would like to thank Russ Withers for providing the data for this study and David Walker for reviewing the paper. Of course, any remaining errors are the authors’ responsibility. Dr. Devadoss’ work in this project was supported by the Cooperative State Research, Education, and Extension Service, US Department of Agriculture, under Agreement No 2002-35400-11693.
PY - 2003/3/4
Y1 - 2003/3/4
N2 - This study computes technical efficiency for Idaho sugarbeet farms and decomposes it into pure technical efficiency, scale efficiency, and congestion efficiency using non-parametric 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.
AB - This study computes technical efficiency for Idaho sugarbeet farms and decomposes it into pure technical efficiency, scale efficiency, and congestion efficiency using non-parametric 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.
UR - http://www.scopus.com/inward/record.url?scp=0344089336&partnerID=8YFLogxK
U2 - 10.1080/00036840210161819
DO - 10.1080/00036840210161819
M3 - Article
AN - SCOPUS:0344089336
VL - 35
SP - 471
EP - 484
JO - Applied Economics
JF - Applied Economics
SN - 0003-6846
IS - 4
ER -