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Cotton Farmers' Technical Efficiency: Stochastic and Nonstochastic Production Function Approaches

Published online by Cambridge University Press:  15 September 2016

Kalyan Chakraborty ,
Sukant Misra  and
Phillip Johnson
Kalyan Chakraborty
Affiliation:
Department of Accounting and CIS, College of Business, Emporia State University, Emporia, Kansas
Sukant Misra
Affiliation:
College of Agricultural Sciences and Natural Resources, Texas Tech University
Phillip Johnson
Affiliation:
Department of Agricultural and Applied Economics, Texas Tech University, Lubbock, Texas
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Abstract

Technical efficiency for cotton growers is examined using both stochastic (SFA) and nonstochastic (DEA) production function approaches. The empirical application uses farm-level data from four counties in west Texas. While efficiency scores for the individual farms differed between SFA and DEA, the mean efficiency scores are invariant of the method of estimation under the assumption of constant returns to scale. On average, irrigated farms are 80% and nonirrigated farms are 70% efficient. Findings show that in Texas, the irrigated farms, on average, could reduce their expenditures on other inputs by 10%, and the nonirrigated farms could reduce their expenditures on machinery and labor by 12% and 13%, respectively, while producing the same level of output.

Keywords

cottondata envelopment analysisstochastic frontiertechnical efficiency
Type
Articles
Information
Agricultural and Resource Economics Review , Volume 31 , Issue 2 , October 2002 , pp. 211 - 220
Copyright
Copyright © 2002 Northeastern Agricultural and Resource Economics Association 

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