Farm Household Production Efficiency: Evidence from the Gambia

Posted: 14 Dec 2005

See all articles by Jean-Paul Chavas

Jean-Paul Chavas

University of Wisconsin

Ragan Petrie

Texas A&M University - Department of Economics; University of Melbourne - Melbourne Institute of Applied Economic and Social Research

Michael J. Roth

University of Wisconsin - Madison - Department of Agricultural & Applied Economics

Abstract

This article investigates the economic efficiency of farm households, with an application to The Gambia. The efficiency analysis is conducted not at the farm level but at the household level, thus capturing the importance of off-farm activities. Output-based measures of technical, allocative, and scale efficiency are generated using nonparametric measurements. An econometric analysis of factors affecting the efficiency indexes is then conducted using a Tobit model. Technical efficiency is fairly high indicating that access to technology is not a severe constraint for most farm households. The cost of scale inefficiency is modest. Allocative inefficiency by contrast is found to be important for the majority of farm households. On the basis of the Tobit results, imperfections in markets for financial capital and nonfarm employment contribute to significant allocative inefficiency.

Suggested Citation

Chavas, Jean-Paul and Petrie, Ragan and Roth, Michael J., Farm Household Production Efficiency: Evidence from the Gambia. American Journal of Agricultural Economics, Vol. 87, No. 1, pp. 160-179, February 2005. Available at SSRN: https://ssrn.com/abstract=856476 or http://dx.doi.org/10.1111/j.0002-9092.2005.00709.x

Jean-Paul Chavas (Contact Author)

University of Wisconsin ( email )

Taylor Hall
Madison, WI 53706
United States
(608) 261-1944 (Phone)
(608) 262-4376 (Fax)

Ragan Petrie

Texas A&M University - Department of Economics ( email )

4228 TAMU
College Station, TX 77843-4228
United States

University of Melbourne - Melbourne Institute of Applied Economic and Social Research ( email )

Level 5, FBE Building, 111 Barry Street
Parkville, Victoria 3010
Australia

Michael J. Roth

University of Wisconsin - Madison - Department of Agricultural & Applied Economics ( email )

427 Lorch St.
Madison, WI 53706-1503
United States

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