|
on Efficiency and Productivity |
|
Issue of 2018‒10‒01
twenty-two papers chosen by |
| By: | Jesus T. Pastor (Center of Operations Research (CIO) at University Miguel Hernandez of Elche, Spain); Knox Lovell (CEPA - School of Economics, The University of Queensland); Juan Aparicio (Center of Operations Research (CIO) at University Miguel Hernandez of Elche, Spain) |
| Abstract: | A natural multiplicative efficiency measure for the Constant Returns to Scale Proportional Directional Distance Function (pDDF) is derived, relating its associated linear program to that of the well-known output-oriented radial efficiency measurement model. Based on this relationship, a Malmquist index is introduced to show that, when it is based on the new efficiency measure associated with the pDDF, rather than on a radial efficiency measure associated with an oriented distance function, it becomes a Total Factor Productivity (TFP) index. This constitutes a new result, because heretofore the traditional Malmquist index has not been considered a TFP index. Additionally, a new decomposition of the Malmquist index is proposed that expresses productivity change as the ratio of two components, productivity change due to output change in the numerator and productivity change due to input change in the denominator. In an Appendix the efficiency measure is extended to include any returns to scale pDDF. |
| Keywords: | Proportional Directional Distance Function, Efficiency Measure, Malmquist productivity index, Data Envelopment Analysis. |
| JEL: | C43 C61 O33 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:qld:uqcepa:126&r=eff |
| By: | Zhang, L. |
| Abstract: | Based on the survey data of 285 grain producing lessee operating units in Jiangsu province and applying the multiple regression model and the estimation method with clustered robust standard errors, this study compared the differences in agricultural productivity between small-scale farm households and large-scale operating units, and further indicated the efficiency impacts of large-scale farmland transfer. Results show that, compared to small-scale farm households, only part of large-scale operating units can obtain higher agricultural productivity. Operation scale of 40 ~ 60 mu is the moderate scale where operating units can achieve the optimal allocative efficiency of agricultural production factors (i.e., land, labor, and capital). Specifically, compared to small-scale farm households (1 ~ 20 mu), those operating units, with an operation scale ranging from 10 to 15 times of the area of arable land contracted per household in local area (40 ~ 60 mu), can achieve higher land productivity, profit rate of cost, and total factor productivity; whereas those operating units with an operation scale more than 40 mu (including 40 ~ 60 mu, 60 ~ 120 mu, 120 ~ 500 mu) can obtain greater labor productivity. |
| Keywords: | Agricultural and Food Policy, Farm Management, International Relations/Trade |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:275918&r=eff |
| By: | Fatima, Hina; Shaheen, Sania; Almas, Lal; Vestal, Mallory; Haroon, Sehrish |
| Abstract: | Rice is known as an Asian crop because 90% of global rice production and consumption takes place in Asia. It is the staple food for about 50% of the world population and 75% of the people living in developing countries. Pakistan is the 11th rice producer in the world and 5th largest exporter. Comparative economic efficiency of Transplanted (TRP) and Direct Seeded (DRS) rice production in Pakistan needs evaluation. This study analyzed the economic efficiency of TRP) and DRS producers in rice producing districts of Punjab. Primary data was collected from major rice producing areas of Punjab, Pakistan and Stochastic Frontier Analysis (SFA) was run in order to estimate the profit efficiency of rice producers. The results revealed that on average profit efficiency of TRP rice farmers and DRS farmers was 57% and 83%, respectively. Hence, there are opportunities to improve economic and technical efficiency as well as the rice production profitability through adopting improved farming practices, optimal use of inputs and production techniques. The results also demonstrated that socio-economic factors of rice producers also significantly influence the profit efficiency of rice producers. Therefore, the efficiency of rice producers can also be improved through education and enrichment of extension services in the rural areas. |
| Keywords: | Crop Production/Industries |
| Date: | 2018–01–24 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea18:267162&r=eff |
| By: | Mehrjerdi, Mahla Zare; Mark, Tyler |
| Abstract: | Production resources are limited, world’s population is growing. One way to increase the production is to increase the area under cultivation, but this solution is not possible in all situations. Besides, increasing the cultivation area does not guarantee an increase in production. Another way is to increase the production is using more advanced machinery and production techniques. Wheat is the most strategic agricultural product in Iran. It forms the significant portion of Iranian diet. Policymakers have always been interested in new methods that can make the country independent of importing wheat. T reach this goal, it is essential to evaluate the productivity of wheat production. Using data from surveys done by Agriculture ministry of Iran, this study estimates the productivity of wheat production using a Cobb-Douglas production function in Tehran. The proposed method to estimate the productivity is Stochastic Frontier Production Function Model. The result suggests Farm size shows the highest marginal rate of productivity. |
| Keywords: | Agricultural and Food Policy, Production Economics, Productivity Analysis |
| Date: | 2018–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea18:266774&r=eff |
| By: | Valentin Zelenyuk (CEPA - School of Economics, The University of Queensland); Hideyuki Mizobuchi (Faculty of Economics, Ryukoku University) |
| Abstract: | In this paper, we propose the quadratic-mean-of-order-𠑟 indexes of output, input and productivity and show that all index number formulae belonging to this family are superlative indexes. In turn, this helps by deriving a generalization of the well-known Diewert’s theorem about equivalence of Fisher and Malmquist indexes. Our results also give new justifications for output and input comparison and productivity measurement via other interesting indexes such as the implicit Walsh index. |
| Keywords: | index numbers, superlative index, quadratic-mean-of-order-ð ‘Ÿ index, Fisher index, Malmquist index, implicit Walsh index, time reversal test |
| JEL: | C14 D24 E31 O47 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:qld:uqcepa:127&r=eff |
| By: | Rajcaniova, M.; Ciaian, P.; Guri, F.; Zhllima, E.; Shahu, E. |
| Abstract: | We estimate the impact of land fragmentation and crop rotation on farm productivity in rural Albania. We employ stochastic production frontier estimation approach and Tobit regression on survey data collected among farm households in Albania in 2013. Our estimates suggest that land fragmentation improves farm efficiency likely because it allows a better use of household labour during the production seasons. Our estimates also suggest that crop rotation increases farm efficiency. However, the land fragmentation dominates the crop rotation in impacting farm efficiency. |
| Keywords: | Crop Production/Industries, Land Economics/Use |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:275893&r=eff |
| By: | Johannes Boehm; Ezra Oberfield |
| Abstract: | The strength of contract enforcement determines how firms source inputs and organize production. Using microdata on Indian manufacturing plants, we show that production and sourcing decisions appear systematically distorted in states with weaker enforcement. Specifically, we document that in industries that tend to rely more heavily on relationship-specific intermediate inputs, plants in states with more congested courts shift their expenditures away from intermediate inputs and appear to be more vertically integrated. To quantify the impact of these distortions on aggregate productivity, we construct a model in which plants have several ways of producing, each with different bundles of inputs. Weak enforcement exacerbates a holdup problem that arises when using inputs that require customization, distorting both the intensive and extensive margins of input use. The equilibrium organization of production and the network structure of input-output linkages arise endogenously from the producers' simultaneous cost minimization decisions. We identify the structural parameters that govern enforcement frictions from cross-state variation in the first moments of producers' cost shares. A set of counterfactuals show that enforcement frictions lower aggregate productivity to an extent that is relevant on the macro scale. |
| Keywords: | production networks, intermediate inputs, misallocation, productivity, contract enforcement, value chains |
| JEL: | E23 O11 F12 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1572&r=eff |
| By: | Elstner, Steffen; Feld, Lars P.; Schmidt, Christoph M. |
| Abstract: | Despite massive digitization efforts, the German economy has experienced a marked slowdown in its productivity growth. This paper analyzes the reasons behind this disconcerting development. A major factor is the turnaround of the labor market that commenced around 2005. The successful integration of five million predominantly low-productivity workers into the labor market induced an attenuating effect on productivity growth. This does not explain the slowdown entirely, however. As a potentially important countervailing force, technological advances associated with digitization would have had the potential to lift productivity growth more strongly, but they frequently translated into employment growth instead. |
| Keywords: | labor productivity,labor markets,technology shocks,digitalization,structural VARs |
| JEL: | O40 E24 C32 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:767&r=eff |
| By: | Embaye, Weldensie T.; Bergtold, Jason S. |
| Keywords: | Production Economics, Community/Rural/Urban Development, Productivity Analysis |
| Date: | 2017–06–15 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea17:258107&r=eff |
| By: | Hamory Hicks, Joan; Kleemans, Marieke; Li, Nicholas; Miguel, Edward |
| Keywords: | International Development, Community/Rural/Urban Development, Consumer/Household Economics |
| Date: | 2017–06–26 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea17:258015&r=eff |
| By: | Mzyece, Agness |
| Abstract: | Crop diversification is a climate smart agricultural technique which helps improve resilience for farmers in the face of volatile weather due to climate change. Previous research on its effect on technical efficiency shows contrasting results (positive and negative effects). Other literature show that crop diversification has a positive impact on income variability. Is it possible that choosing crop diversification involves a tradeoff between efficiency and resilience (income variability) for rural smallholder farmers? It is likely that merging these two separate sets of previous literature, one on the effects of crop diversification on technical efficiency, and another on its effect on income variability, can provide valuable insights on the decision making process faced by a farmer considering to adopt crop diversification. So essentially, the question we try to answer in this study is what is the effect of crop diversification on technical efficiency and income variability on the same farm household of northern Ghana? Without addressing this question, policy makers cannot tell for sure if crop diversification is a good CSA option for their farmers, and if it is, they still may not know how to promote its adoption effectively. To answer our research question, we use the Agricultural production data from northern Ghana and employ a Cobb Douglas stochastic input distance function for efficiency, and ordinary least squares for income variability. The results show evidence against ‘tradeoff’. Crop diversification significantly improves efficiency and reduces income variability in northern Ghana so farmers do not have to give up efficiency for income stability or vice versa. Thus crop diversification is an ideal CSA strategy for promoting agricultural growth and resilience in northern Ghana. The data we use in this study has a maximum three crops, so our results cannot be generalized to farmers who grow more than three crops. |
| Keywords: | Agribusiness, International Development, Production Economics |
| Date: | 2018–01–17 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea18:266608&r=eff |
| By: | Puggioni Daniela; Stefanou Spiro E. |
| Abstract: | This paper models Corporate Social Responsibility (CSR) as one of the outputs that results from a firm's decisions regarding what and how to produce. The framework developed allows for studying technical efficiency and deriving a system of internal shadow prices to quantify the value of implementing socially responsible activities. The empirical application focuses on the food and beverage manufacturing sector worldwide. The results indicate high levels of technical efficiency in this sector and document a positive average shadow price of CSR activities, implying that the net value of implementing this kind of activities is positive to the firm as their benefit exceeds the cost. In particular, it is shown that increasing the CSR engagement at the margin positively contributes to the creation of firm value, while reducing it has a negative marginal impact. |
| Keywords: | Productivity and competitiveness;Decision processes;Non-parametric technology;Shadow prices;Corporate Social Responsibility |
| JEL: | C14 D24 M14 M20 |
| Date: | 2018–08 |
| URL: | http://d.repec.org/n?u=RePEc:bdm:wpaper:2018-12&r=eff |
| By: | Moon, W.; Pino, G. |
| Abstract: | This study draws upon research in economics and agricultural economics to demonstrate that free trade in agriculture is not poised to bring about dynamic/productivity gains. That is in contrast to the mounting evidence of dynamic/productivity gains (in addition to the static gains) from free trade in manufacturing industries/firms. We show that the lack of the dynamic gains from agricultural trade is due to the passivity of farm producers in determining their productivity and international competitiveness. It is highlighted that it is neither free trade nor greater competitive pressure on farm producers but public investments for R&D/infrastructure/extension that would bring about improvements in productivity over time. Implications of the lack of the dynamic gains are discussed for governing agricultural trade and designing development strategies in food-importing low income countries. |
| Keywords: | Agricultural and Food Policy, International Relations/Trade |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:275869&r=eff |
| By: | Zenebe, Dawit K. |
| Keywords: | International Relations/Trade, Production Economics, Productivity Analysis |
| Date: | 2017–06–15 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea17:258137&r=eff |
| By: | Sharma, Anupa |
| Keywords: | International Relations/Trade, Agricultural and Food Policy, Marketing |
| Date: | 2017–06–15 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea17:258095&r=eff |
| By: | Astill, G.; Sabasi, D.; Gwatipedza, J. |
| Abstract: | Farmers are increasingly using direct marketing strategies that include farmers’ markets and community supported agriculture arrangements to connect with consumers who prefer locally produced food. We examine the relationship between the increasing use of direct marketing strategies and technical efficiency, using stochastic frontier analysis method. The results show that, on average, the farmers that use direct marketing strategies are less technically efficient compared to the farmers that do not. However, this result is reversed for the largest quantile of growers, on average those who use direct marketing strategies are more technically efficient than those not. |
| Keywords: | Agricultural and Food Policy, Farm Management, Research and Development/Tech Change/Emerging Technologies |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:275917&r=eff |
| By: | McFadden, Jonathan R. |
| Keywords: | Production Economics, Productivity Analysis, Industrial Organization |
| Date: | 2017–06–15 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea17:258120&r=eff |
| By: | Bizimana, Jean-Claude; Richardson, James W. |
| Abstract: | The rural population in developing countries depends on agriculture. However, in many of these countries, agricultural productivity remains low with episodes of famines in drought-prone areas. One of the options to increase agricultural productivity is through adoption and use of improved agricultural technologies and management systems. Being a relatively high risk business due to factors related to production, marketing and finance, agriculture requires to devise risk mitigating strategies. Several models used to evaluate the adoption of agricultural technologies focus mainly on assessing the ex-post impact of technology without necessarily quantifying the profit and risk associated with the adoption of technologies. This paper introduces a farm simulation model (FARMSIM) that attempts to evaluate the potential economic and nutritional impacts of new agricultural technologies before they are adopted (ex-ante). FARMSIM is a Monte Carlo simulation model that simultaneously evaluates a baseline and an alternative farming technology. In this study, the model is used to analyze the impact of adoption of small scale irrigation technologies and fertilizers on the farm income and nutrition of smallholder farmers in Robit kebele, Amhara region of Ethiopia. The farming technologies under study comprise water lifting technologies (pulley and tank, rope and washer pump, gasoline/diesel motor pump and a solar pump) and use of fertilizers. The key output variables (KOVs) are the probability of positive annual net cash income and ending cash reserves, probability of positive net present value and a benefit cost ratio greater than one. For nutrition, the KOVs relate to the probability of consumption exceeding average daily minimum requirements of an adult for calories, protein, fat, calcium, iron, and vitamin A. The application of recommended fertilizers on grain and vegetable crops, alongside the use of irrigation to grow vegetables and fodder using a motor pump had the highest net present value compared to other scenarios. Similar results were observed for the net cash farm income and the ending cash reserves. However, the most feasible and profitable scenario is the one under the pulley system which had the highest benefit cost ratio. Solar pump system had the lowest benefit cost ratio due most likely to high initial investment cost. As for the nutrition, the simulation results show an increase in quantities available to the farm family of all nutrition variables under all alternative scenarios. However, the daily minimum requirements per adult equivalent were met only for calories, proteins, iron and vitamin A but deficiencies were observed for fat and calcium. |
| Keywords: | Agricultural and Food Policy, International Development, Risk and Uncertainty |
| Date: | 2018–01–17 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea18:266589&r=eff |
| By: | Chen, Huang |
| Keywords: | Risk and Uncertainty, Agricultural and Food Policy, Production Economics |
| Date: | 2017–06–30 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea17:258212&r=eff |
| By: | Johannes Boehm (Princeton University); Ezra Oberfield (Princeton University) |
| Abstract: | How much do changes in the fragmentation of production contribute to growth? Using detailed plant-level data on the manufacturing sector in India between 1990 and 2014, we find salient changes in the vertial scope of production at the industry and plant level. We study how change in the vertical and horizontal scope of production is associated with firm, industry, and aggregate growth. |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed018:885&r=eff |
| By: | Corinne Autant-Bernard (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet [Saint-Étienne] - Université de Lyon - CNRS - Centre National de la Recherche Scientifique); James Lesage (McCoy College of Business Administration Finance and Economics Department - Texas State University) |
| Abstract: | Past literature has used conventional spatial autoregressive panel data models to relate patent production output to knowledge production inputs. However, research conducted on regional innovation systems points to regional disparities in both regions ability to turn their knowledge inputs into innovation and to access external knowledge. Applying a heterogeneous coefficients spatial autoregressive panel model, we estimate region-specific knowledge production functions for 94 NUTS3 regions in France using a panel covering 21 years from 1988 to 2008 and 4 high-technology industries. A great deal of regional heterogeneity in the knowledge production function relationship exists across regions, providing new insights regarding spatial spillin and spillout effects between regions. Abstract Past literature has used conventional spatial autoregressive panel data models to relate patent production output to knowledge production inputs. However, research conducted on regional innovation systems points to regional disparities in both regions ability to turn their knowledge inputs into innovation and to access external knowledge. Applying a heterogeneous coefficients spatial autoregressive panel model, we estimate region-specific knowledge production functions for 94 NUTS3 regions in France using a panel covering 21 years from 1988 to 2008 and 4 high-technology industries. A great deal of regional heterogeneity in the knowledge production function relationship exists across regions, providing new insights regarding spatial spillin and spillout effects between regions. |
| Keywords: | Knowledge production,spatial econometrics,region-specific parameters |
| Date: | 2018–09–11 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01872021&r=eff |
| By: | Rosas, Juan F.; Lence, Sergio H. |
| Keywords: | Production Economics, Demand and Price Analysis, Research Methods/Statistical Methods |
| Date: | 2017–06–30 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea17:258236&r=eff |