scholarly journals Estimating Relative Technical Efficiency in Barani Agriculture: Some Further Results

1995 ◽  
Vol 34 (4III) ◽  
pp. 913-924
Author(s):  
Himayat Ullah
Keyword(s):  
Technical Efficiency ◽  
Economic Efficiency ◽  
Marginal Cost ◽  
Allocative Efficiency ◽  
Farm Size ◽  
Marginal Revenue ◽  
Marginal Revenue Product ◽  
Main Components ◽  
Large Farms ◽  
Revenue Product

The concept of technical efficiency of farms has sufficiently been detailed in the literature on agricultural economic development since Farrell (1957) and has now widely been studied by, among others, Bardhan (1973); Kalirajan and Flinn (1983); Fare, Grosskopf and Lovell (1985); Battese, Coelli and Colbi (1989); Kalirajan (1990); Battese and Coelli (1992); Himayatullah, et al. (1994); and Bashir and Himayatullah (1994). The interest in relative economic efficiency emerged from the observation that labour intensity and yield are inversely related to farm size. Economists interpreted this result as an indication that either small and large farms faced different configurations of input and output prices, or small and large farms differed with respect to economic efficiency. Economic efficiency of a group of farms can be conceptualised as comprising two main components; technical efficiency and allocative efficiency. A group of farms may be considered technically more efficient than another group of farms if it can produce a given output with less of some or all inputs, and a group of farms may be considered allocatively more efficient than another group of farms if it is more successful in equating marginal revenue product with the marginal cost of inputs. More simply, technical efficiency involves the farm’s ability to obtain the maximum possible output from a given set of resources, and allocative efficiency concerns its ability to maximise profits by equating the marginal revenue product with the marginal cost of inputs. Specifically, a group of farms that uses the best combination of inputs achieves the maximum possible output and is superior to another group of farms which does not do the same, given a similar bundle of inputs.

scholarly journals ANALYSIS OF EFFICIENCY AMONG RICE FARMERS IN OYO STATE, NIGERIA

2020 ◽  
Vol 6 ◽  
pp. 54
Author(s):  
Wasiu Olawale ADESHINA ◽  
Olugbenga Adesoji Christopher OLOGBON ◽  
Adewunmi Olubanjo IDOWU
Keyword(s):  
Technical Efficiency ◽  
Economic Efficiency ◽  
Formal Education ◽  
Technology Policy ◽  
Stochastic Frontier ◽  
Allocative Efficiency ◽  
Maximum Likelihood Estimates ◽  
Farm Size ◽  
Primary Data ◽  
Rice Farmers

Increased rice productivity for years is not a solution if rice farming efficiency cannot be sustained for the next hundred years. The study analysed the efficiency of rice farmers in Oyo State. A multistage sampling procedure was employed to select128 rice farmers for the study. Primary data were obtained with the aid of well-structured questionnaire and interview schedule. Descriptive statistics and stochastic frontier model were employed in the analysis of the data. Majority (78.1%) of the rice farmers had one form of education or the other while the age of rice farmers ranges from 25 to 78 years and mean age of 47 years. The stochastic frontier results (Maximum Likelihood Estimates) revealed that farm output increases with farm size, hired labour, and fertilizer but decreases with herbicides. Also, technical efficiency of the farmers increases with formal education, farming experience, household size, extension contact and distance of farm to market. The mean technical efficiency, allocative efficiency and economic efficiency of 88.5 percent, 66.9 percent and 58.3 percent respectively showed that there is room for improvement in technical efficiency by 11.5 percent, allocative efficiency by 33.1 percent and economic efficiency by 41.7 percent with the present technology. Policy option requires the rice farmers to reduce the use of agro chemical. Farmers should expand their farm land to ensure efficient utilization of resources. Above all, formal education and adult literacy education should be strengthened among the rice farmers.

scholarly journals ANALYSIS OF EFFICIENCY AMONG RICE FARMERS IN OYO STATE, NIGERIA

2020 ◽  
Vol 10 ◽  
pp. 19
Author(s):  
Wasiu Olawale Adeshina ◽  
Olugbenga Adesoji Christopher Ologbon ◽  
Adewunmi Olubanjo Idowu
Keyword(s):  
Technical Efficiency ◽  
Economic Efficiency ◽  
Formal Education ◽  
Technology Policy ◽  
Stochastic Frontier ◽  
Allocative Efficiency ◽  
Maximum Likelihood Estimates ◽  
Farm Size ◽  
Primary Data ◽  
Rice Farmers

Increased rice productivity for years is not a solution if rice farming efficiency cannot be sustained for the next hundred years. The study analysed the efficiency of rice farmers in Oyo State. A multistage sampling procedure was employed to select 128 rice farmers for the study. Primary data were obtained with the aid of well-structured questionnaire and interview schedule. Descriptive statistics and stochastic frontier model were employed in the analysis of the data. Majority (78.1%) of the rice farmers had one form of education or the other while the age of rice farmers ranges from 25 to 78 years and mean age of 47 years. The stochastic frontier results (Maximum Likelihood Estimates) revealed that farm output increases with farm size, hired labour, and fertilizer but decreases with herbicides. Also, technical efficiency of the farmers increases with formal education, farming experience, household size, extension contact and distance of farm to market. The mean technical efficiency, allocative efficiency and economic efficiency of 88.5 percent, 66.9 percent and 58.3 percent respectively showed that there is room for improvement in technical efficiency by 11.5 percent, allocative efficiency by 33.1 percent and economic efficiency by 41.7 percent with the present technology. Policy option requires the rice farmers to reduce the use of agro chemical. Farmers should expand their farm land to ensure efficient utilization of resources. Above all, formal education and adult literacy education should be strengthened among the rice farmers.

scholarly journals ANALYSIS OF TECHNICAL, ALLOCATIVE AND ECONOMIC EFFICIENCIES OF YAM PRODUCERS IN GANYE LOCAL GOVERNMENT AREA OF ADAMAWA STATE, NIGERIA

2020 ◽  
Vol 6 (7) ◽  
pp. 129-143
Author(s):  
A. Aliyu ◽  
A. B Shelleng
Keyword(s):  
Local Government ◽  
Technical Efficiency ◽  
Economic Efficiency ◽  
Best Practice ◽  
Allocative Efficiency ◽  
Local Government Area ◽  
Efficiency Gain ◽  
Average Output ◽  
Absolute Efficiency ◽  
The Mean

The study investigated the technical, Allocative and economics efficiencies of yam producers in Ganye Local government Area, Adamawa State, Nigeria. Combinations of purposive and random sampling techniques were employed using 100 famers from five different wards of the local government. In the first place, five wards were selected and used for this study and twenty farmers were selected from each ward, making a total of 100 famers, twenty. The analytical tool used to achieve the objectives of this study was Data Envelopment Analysis. The results of the study revealed that 57% of the farmers had technical efficiency of 0.81 and above while 43% of the farmers operate at less than 0.81 efficiency level. The mean technical efficiency for the 100 sampled farmers in the study area was 0.78. The farmer with the best practice has a technical efficiency of 1.00 while 0.37 is for the least efficient farmers. This implies that on the average, output fall by 0% from the maximum possible level of 1.00 due to technical inefficiency. The mean allocative efficiency was 0.98. The result indicates that average yam farmer in the state would enjoy cost saving of about 5% while allocative inefficient farmer will have an efficiency gain of 95% to attain the level of most efficient farmer among the respondents. The mean economic efficiency was 0.77. The farmer with the best practice has an economic efficiency of 1.0 while 0.08 was for the least efficient farmers. This implies that on the average, output fall by 52% from the maximum possible level due to inefficiency. Finally, among the constraints identified in the study area, the majority of the respondent attested to the fact that high cost of inputs, transportation problem, lack of credit facilities and storage/preservation problem were the major constraints they faced in yam production in the area. The study concludes that yam farmers in the study area have achieved absolute efficiency in the use of variable inputs. It was found that yam production in the study area is profitable.

Is offense worth more than defense and pitching? Marginal revenue product and revenue sharing in major league baseball

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Justin Andrew Ehrlich ◽  
Joel M. Potter
Keyword(s):  
Major League Baseball ◽  
Revenue Sharing ◽  
Ordinary Least Squares ◽  
Decision Makers ◽  
Marginal Revenue ◽  
Content Type ◽  
Marginal Revenue Product ◽  
Major League ◽  
Team Decision ◽  
Revenue Product

PurposeSports economists have consistently found that winning positively impacts team revenue fans prefer to allocate their entertainment dollars to winning teams. Previous research has also found that fans do not have a preference for how their team wins. However, this research ignores the significant variability in revenue that can exist between teams with similar attendance figures. The authors contribute to the literature by testing whether profit maximizing teams should pay different amounts for different types of production by estimating the marginal revenue product of a win due to offense, defense and pitching.Design/methodology/approachUsing data from the 2010–2017 Major League Baseball seasons and an Ordinary Least Squares-Fixed Effects approach, the authors test whether a unit of offensive, defensive and pitching production generates differing amounts of team revenue both before and after revenue sharing. The authors then test if team Wins Above Replacement is a good approximation of actual wins while accounting for the previously observed nonlinear relationship between wins and revenue.FindingsThe authors found that marginal revenue product estimates in the postrevenue sharing model for mowar, pwar and dwar are nearly identical to each other. Further, after predicting prerevenue sharing, the authors find that fans have no preference for mowar, pwar or dwar play styles.Originality/valueThe findings illustrate that team decision-makers appear to be acting irrationally by paying more for offense than they do for defense. Thus, the findings suggest that team decision-makers should value defensive wins and pitching wins at the same rate as offensive wins on the free agent market.

scholarly journals Economic Efficiency in Organic Farming: Evidence from Cotton Farms in Viotia, Greece

2001 ◽  
Vol 33 (1) ◽  
pp. 35-48 ◽  
Author(s):  
Vangelis Tzouvelekas ◽  
Christos J. Pantzios ◽  
Christos Fotopoulos
Keyword(s):  
Economic Efficiency ◽  
Allocative Efficiency ◽  
Farm Size ◽  
Stochastic Production Frontier ◽  
Production Frontier ◽  
Organic Farms ◽  
Lower Efficiency ◽  
Stochastic Production ◽  
Low Efficiency ◽  
Farm Types

AbstractUsing recent advances in the stochastic production frontier framework, this paper presents an empirical analysis of technical, allocative and economic efficiency of a sample of organic and conventional cotton farms located in Greece. The results suggest that both farm types in the sample examined are technically, allocatively and economically inefficient. Farmer's age and education and farm size are important factors in explaining differentials in efficiency estimates. In comparative terms, organic farms exhibit lower efficiency scores vis-à-vis their conventional counterparts in terms of technical and economic efficiency; regarding allocative efficiency both farm types are almost equally inefficient. Low efficiency scores in both types of farming may be attributed to the respective intervention policies of the last 20 years.

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