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

Date

2002-10

Authors

Johnson, Phillip
Mirsa, Sukant
Chakraborty, Kalyan

Journal Title

Journal ISSN

Volume Title

Publisher

Notheastern Agricultural and Resource Economics Assocation

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 SF A 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 [anus 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.

Description

Keywords

cotton, data envelopment analysis, stochastic frontier, technical efficiency

Citation

Chakraborty, K. S., S. Misra, and P. Johnson. "Cotton Farmers' Technical Efficiency: Stochastic and Nonstochastic Production Function Approaches." _Agricultural and Resource Economics Review_ 31.2 (2002): 211-220.