Farm Inefficiency Resulting from the Missing Management Input

Justin P. Byma and Loren W. Tauer

No 127008, Working Papers from Cornell University, Department of Applied Economics and Management

Abstract: We use DEA (Data Envelopment Analysis) techniques to determine if measured inefficiencies are caused by a missing management input. We replace the quantity of operators’ labor with estimates of the value of labor and management, and then with net farm income from the previous year, to determine if those replacements for operator labor changes calculated efficiencies. We calculate not only technical efficiencies, but also cost and revenue efficiencies and decompose them into allocative efficiencies. The empirical results are disappointing, in that our management inputs make little impact on measured inefficiencies. Very few articles have measured technical, cost, and revenue efficiency in the same study, and then not with a 10 year panel data set. Many may be interested in the estimates of DEA efficiencies on these dairy farms over the 10 years using the various specifications.

Keywords: Farm Management; Research Methods/Statistical Methods (search for similar items in EconPapers)
Pages: 31
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://ageconsearch.umn.edu/record/127008/files/Cornell_Dyson_wp0706.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:cudawp:127008

DOI: 10.22004/ag.econ.127008

Access Statistics for this paper

More papers in Working Papers from Cornell University, Department of Applied Economics and Management Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().