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The Efficiency of Labor Input in the Tree Nut Growers Industry: A Stochastic Frontier Production Approach Study in Butte County, California

Kuo-Liang Matt Chang () and Todd A. Lone ()
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Kuo-Liang Matt Chang: Department of Economics,South Dakota State University
Todd A. Lone: Department of Agricultural Economics, Jordan College of Agricultural Sciences and Technology, California State University, Fresno

No 42009, SDSU Working Papers in Progress from South Dakota State University, Department of Economics

Abstract: This paper aims to examine the contribution of the labor input to agricultural production efficiency. If an increase in numbers of labor does not increase production efficiency, we should have reason to question the current quantity-oriented labor policies in terms of solving the labor shortage issue. In addition, we want to examine the marginal rate of technical substitution (MRTS) between the labor input and other inputs. The MRTS will provide a clear idea of how labor can be replaced with other inputs without losing total production. Finally, the influence of farm labor on economies of scale and economies of scope will also be discussed. We will investigate whether the scale and size of the farm has a significant role in determining production efficiency for our target farmers.

Keywords: Labor; Stochastic Frontier (search for similar items in EconPapers)
JEL-codes: J43 Q12 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2009-09
New Economics Papers: this item is included in nep-agr and nep-eff
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