2006
DOI: 10.1017/s1074070800022604
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Cost Efficiency and Scope Economies of Crop and Livestock Farms in Missouri

Abstract: This study investigates productive efficiency for a sample of Missouri crop-only (specialized) and integrated crop-livestock (diversified) farms using a cost frontier approach. Results suggest that significant cost inefficiency exists among sample farms. Lower cost efficiency in both types of farms was attributed to improper scale of operations and misallocation of inputs. On average, diversified farms were as technically and scale efficient as specialized farms. Lower allocative efficiency diluted gains in te… Show more

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Cited by 21 publications
(13 citation statements)
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“…Therefore, the choice of which method to use appears to be arbitrary, as is pointed out by Dhungana, Nuthall, and Nartea (2004). We chose the DEA approach, because it imposes no a priori parametric restriction on the underlying technology (Chavas and Aliber, 1993;Fletschner and Zepeda, 2002;Lansink, Pietola, and Backman, 2002;Wu and Prato, 2006).…”
Section: Measurement Of Production Efficiencymentioning
confidence: 99%
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“…Therefore, the choice of which method to use appears to be arbitrary, as is pointed out by Dhungana, Nuthall, and Nartea (2004). We chose the DEA approach, because it imposes no a priori parametric restriction on the underlying technology (Chavas and Aliber, 1993;Fletschner and Zepeda, 2002;Lansink, Pietola, and Backman, 2002;Wu and Prato, 2006).…”
Section: Measurement Of Production Efficiencymentioning
confidence: 99%
“…All other variables in equation (2) are as previously defined. The constraint ^Z A, , -= 1 in (2) again ensures that the minimum total costs for the field are calculated under the VRS assumption (Fletscher and Zepeda, 2002;Wu and Prato, 2006). Economic efficiency (EE n ) for each field is then calculated using the following equation:…”
Section: Min6"mentioning
confidence: 99%
“…= the minimum total cost for firm ; = the price for input for firm ; * = the cost minimizing level of input for firm given its input price and output levels; all other variables are as previously defined. The constraint ∑ = 1 ensures that the total minimum costs for the field are calculated under VRS assumption [17,18]. The economic efficiency for each firm can then be calculated using Equation (11)…”
Section: Economic Efficiencymentioning
confidence: 99%
“…Therefore, the choice of which method to use appears to be arbitrary, as is pointed out by Dhungana et al (2004). We chose the DEA approach in this study, since it imposes no a priori (Chavas & Aliber, 1993;Fletschner & Zepeda, 2002;Wu & Prato, 2006).…”
Section: Defining Efficiencymentioning
confidence: 99%