Potential Improvement of Agricultural Output for Major Producers Based on DEA Efficiency Measurements
Geraldo Silva Souza
University of Brazil
Tito Belchior Silva Moreira
Catholic University of Brasilia
Eliane G. Gomes
affiliation not provided to SSRN
February 4, 2012
In this article we perform production efficiency analysis for the 40 countries with largest value added by agricultural sector in 2005. Under the assumption of a nonparametric frontier and production observations satisfying a statistical model including both random and inefficiency errors, we estimate an agricultural production function using DEA measures of efficiency with output orientation and variable returns to scale. We found evidence that the set of countries investigated could increase their total value added by agricultural sector for at least 53.9% without increasing input usage with the prevailing technology.
This result has a direct impact on issues related to the recent food crisis.
Number of Pages in PDF File: 15
Keywords: food crisis, efficiency, DEA, agriculture
JEL Classification: Q10working papers series
Date posted: February 6, 2012
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