Article thumbnail

EFFICIENCY MEASURES USING THE RAY-HOMOTHETIC FUNCTION: A MULTIPERIOD ANALYSIS

By David L. Neff, Philip Garcia and Robert H. Hornbaker

Abstract

Recent investigations have provided mixed assessments of farm firm efficiency. This analysis examined the efficiency of a homogeneous sample of central Illinois grain farms over a six-year period. A best-practice frontier was constructed using the ray-homothetic function, which allowed optimal farm output to vary with factor intensity. Efficiency measures were found to increase with temporal aggregation. The ray-homothetic approach was found to attribute high scale inefficiencies to larger sample farms in cases where the factor shares did not vary appreciably across farms. The findings suggest that policy recommendations regarding farm efficiency must be made with care.Agribusiness,

OAI identifier:
Downloaded from http://purl.umn.edu/30053

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.

Suggested articles

Citations

  1. A Nonparametric Approach to Expenditure Constrained Profit Maximization."
  2. Alternative Production Frontier Methodologies and Dairy Farm Efficiency."
  3. An Analysis of Optimal Scale and Factor Intensity in Nepalese Agriculture: An Application of a Ray-Homothetic Production Function."
  4. (1982). Cooperative Extension Service. Various Issues,
  5. Curve Fitting Versus Hypothesis Testing: A Comment."
  6. Curve Fitting vs Hypothesis Testing with Production Functions: Comment on Grabowski and Belbase."
  7. Efficiency of the Railroad Industry: A Frontier Production Function Approach."
  8. Estimating Production Technical Efficiency for Individual Farms in Tennessee."
  9. Estimating Stochastic Frontier Systems with Unbalanced Panel Data: The Case of Floor Tile Manufactories in Egypt."
  10. Modelling Scale Economies with Ray-Homothetic Production Functions."
  11. Prediction of Firm-Level Technical Efficiencies with a Generalized Frontier Production Function and Panel Data."
  12. Production Frontiers and Panel Data."
  13. Returns to Scale in U.S. Surface Mining of Coal." Resources and Energy,
  14. Technical Efficiency and Size: The Case of Illinois Grain Farms."
  15. Technical Efficiency of New York Dairy Farms."
  16. Technical Efficiency on Individual Farms in Northwest India."
  17. The Measurement of Farm-Specific Technical Efficiency."
  18. The Technical Efficiency of Corn Farms in the Corn Belt: A Methodological Note."
  19. The Technical Efficiency of Illinois Grain Farms: An Application of a Ray-HomotheticProduction Function."
  20. Using a Probabilistic Frontier Production Function to Measure Technical Efficiency."