Smallholder Technical Efficiency with Stochastic Exogenous Production Conditions

Cornell University Working Paper No. 98-15

29 Pages Posted: 2 Jun 2001

See all articles by Shane M. Sherlund

Shane M. Sherlund

Federal Reserve Board of Governors

Christopher B. Barrett

Cornell University - Charles H. Dyson School of Applied Economics & Management

Akinwumi A. Adesina

The Rockefeller Foundation

Date Written: February 2001

Abstract

Smallholder agricultural production depends heavily on environmental production conditions that are largely exogenously determined. Yet few data sets collect necessary, detailed information on environmental production conditions. This oversight raises the spectre of likely omitted variables bias because farmers' input choices typically respond in part to environmental conditions. Moreover, because environmental production conditions are rarely symmetrically distributed, the omission also generally leads to upward bias in estimated technical inefficiency and to biased estimates of the correlates of estimated technical inefficiency as well. Using panel data from 464 traditional rice plots in Cote d'Ivoire, we show that controlling for heterogeneous environmental production conditions significantly changes inferences, perhaps especially with respect to smallholder rice farmers' estimated technical inefficiency.

Suggested Citation

Sherlund, Shane M. and Barrett, Christopher B. and Adesina, Akinwumi A., Smallholder Technical Efficiency with Stochastic Exogenous Production Conditions (February 2001). Cornell University Working Paper No. 98-15. Available at SSRN: https://ssrn.com/abstract=270482 or http://dx.doi.org/10.2139/ssrn.270482

Shane M. Sherlund

Federal Reserve Board of Governors ( email )

20th and C Streets, NW
Mailstop 93
Washington, DC 20551
United States
202-452-3589 (Phone)
202-728-5887 (Fax)

Christopher B. Barrett (Contact Author)

Cornell University - Charles H. Dyson School of Applied Economics & Management ( email )

315 Warren Hall
Ithaca, NY 14853-7801
United States
607-255-4489 (Phone)
607-255-9984 (Fax)

HOME PAGE: http://aem.cornell.edu/faculty_sites/cbb2/

Akinwumi A. Adesina

The Rockefeller Foundation ( email )

420 Fifth Avenue
New York, NY 10018-2702
United States

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