Factors that Affect the Technical and Allocative Efficiency in the Colombian Coffee Sector: An Application with Data Envelopment Analysis (Factores que Afectan la Eficiencia Técnica y Asignativa en el Sector Cafetero Colombiano: Una Aplicación con Análisis Envolvente de Datos) (Spanish)

Desarrollo y Sociedad, Forthcoming

46 Pages Posted: 8 Apr 2010 Last revised: 29 Mar 2012

Jorge Andres Perdomo Calvo

Universidad de los Andes, Colombia; Teknidata Consultants

Juan Carlos Mendieta-Lopez II

Universidad de los Andes, Colombia - Department of Economics

Date Written: September 9, 2007

Abstract

Technical and Allocative efficiency are relative concepts, first it is used conventionally, to know if a producer obtain the maximum level of production, according to the amount of inputs used in the process. The second looks for to know if the producer uses the optimal amounts of inputs in the production process, according to the prices of these production factors. This study use microeconomic data on coffee producers of the Caldas, Quindío and Risaralda to determinate the levels of technical and allocative efficiency using “Data Envelopment Analysis – DEA.” Technical efficiency for small producers it is 3.76%, for middle producer it is 51.71% and big producers it is 60.15%, for the all coffee sector the technical efficiency it is 42.38%. Whereas for the allocative efficiency, the results are 36.13%, 42.98%, 18.86% and 36.50%, respectively. This results show that the coffee Colombian sector it is inefficient technical and allocatively. This means that the big producers uses the correct amount of inputs for maximize the coffee production but they do not produce following the schedule of minimum cost. On the other hand, small and middle producers and for all coffee sector they do not use efficiently the inputs, they do not maximize your coffee production and they do not produce following the minimum cost schedule, this because they are technical and allocatively inefficient.

Notes: downloadable document is in Spanish

Keywords: Technical and Allocative Efficiency, Nonparametric Methods, Data Envelopment Analysis, Microeconomic Data, Colombian Coffee Sector

JEL Classification: H21, D61, C14, C81

Suggested Citation

Perdomo Calvo, Jorge Andres and Mendieta-Lopez, Juan Carlos, Factors that Affect the Technical and Allocative Efficiency in the Colombian Coffee Sector: An Application with Data Envelopment Analysis (Factores que Afectan la Eficiencia Técnica y Asignativa en el Sector Cafetero Colombiano: Una Aplicación con Análisis Envolvente de Datos) (Spanish) (September 9, 2007). Desarrollo y Sociedad, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1586420 or http://dx.doi.org/10.2139/ssrn.1586420

Jorge Andres Perdomo Calvo (Contact Author)

Universidad de los Andes, Colombia ( email )

Carrera Primera # 18A-12
Bogota
Colombia

Teknidata Consultants ( email )

Cr 50 100-62 Of 403
Bogota
Colombia

HOME PAGE: http://www.teknidataconsultores.com

Juan Carlos Mendieta II

Universidad de los Andes, Colombia - Department of Economics ( email )

Carrera 1a No. 18A-10
Santafe de Bogota, AA4976
Colombia

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