The Technical Efficiency of Illinois Grain Farms: An Application of a Ray-Homothetic Production Function

Hassan Y. Aly, Krishna Belbase, Richard Grabowski and Steven Kraft

Journal of Agricultural and Applied Economics, 1987, vol. 19, issue 1, 69-78

Abstract: The purpose of this paper is to measure the extent of technical inefficiency among a sample of Illinois grain farms using the corrected ordinary least squares method. Instead of assuming a Cobb-Douglas production function, a linear form of the ray-homothetic is used. The results show a significant amount of technical inefficiency among all the farms in the sample, but with large farms being less technically inefficient than small farms.

Date: 1987
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Journal Article: THE TECHNICAL EFFICIENCY OF ILLINOIS GRAIN FARMS: AN APPLICATION OF A RAY-HOMOTHETIC PRODUCTION FUNCTION (1987)
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Persistent link: https://EconPapers.repec.org/RePEc:cup:jagaec:v:19:y:1987:i:01:p:69-78_01

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