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Parametric Estimation of Technical and Allocative Efficiency in U.S. Agriculture

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Agricultural Productivity

Part of the book series: Studies in Productivity and Efficiency ((SIPE,volume 2))

Abstract

Bayesian methodology is used to impose inequality constraints (including monotonicity and concavity) on a system of equations derived from a translog shadow cost frontier. The estimated parameters are used to estimate levels of technical, allocative, and cost efficiency in forty-eight states. Results are reported mainly in terms of means and standard deviations of estimated marginal probability density functions. Estimated probability distributions are also provided for some efficiency rankings. Florida is found to be the most technically and cost-efficient state, and South Dakota is found to be the most allocatively efficient. Point estimates of levels of technical, allocative, and cost efficiency average 64%, 88%, and 56% respectively across all states.

The author wishes to thank Eldon Ball for providing the data, and Tom Cox and Richard Shumway for helpful comments.

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Authors
  1. C. J. O’Donnell
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Editors and Affiliations

  1. Economic Research Service, U.S. Department of Agriculture, Washington, DC, USA

    V. Elton Ball

  2. Department of Agricultural and Applied Economics, Virginia Polytechnic Institute and State University, Blacksburg, VA, USA

    George W. Norton

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© 2002 Springer Science+Business Media New York

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O’Donnell, C.J. (2002). Parametric Estimation of Technical and Allocative Efficiency in U.S. Agriculture. In: Ball, V.E., Norton, G.W. (eds) Agricultural Productivity. Studies in Productivity and Efficiency, vol 2. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-0851-9_6

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  • DOI: https://doi.org/10.1007/978-1-4615-0851-9_6

  • Publisher Name: Springer, Boston, MA

  • Print ISBN: 978-1-4613-5270-9

  • Online ISBN: 978-1-4615-0851-9

  • eBook Packages: Springer Book Archive

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