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Measurement of Technical, Allocative, Economic, and Scale Efficiency of Rice Production in Arkansas Using Data Envelopment Analysis

Published online by Cambridge University Press:  26 January 2015

K. Bradley Watkins ,
Tatjana Hristovska ,
Ralph Mazzanti ,
Charles E. Wilson Jr  and
Lance Schmidt
K. Bradley Watkins
Affiliation:
University of Arkansas Rice Research and Extension Center, Stuttgart, Arkansas
Tatjana Hristovska
Affiliation:
University of Arkansas Rice Research and Extension Center, Stuttgart, Arkansas
Ralph Mazzanti
Affiliation:
University of Arkansas Rice Research and Extension Center, Stuttgart, Arkansas
Charles E. Wilson Jr
Affiliation:
University of Arkansas Rice Research and Extension Center, Stuttgart, Arkansas
Lance Schmidt
Affiliation:
University of Arkansas Newport Extension Center, Newport, Arkansas
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Abstract

Data envelopment analysis is used to calculate technical, allocative, economic, and scale efficiencies for fields enrolled in the University of Arkansas Rice Research Verification Program. The results reveal most fields have high technical and scale efficiencies, implying inputs are used in minimum levels necessary to achieve given output levels and fields are close to optimal in size. However, most fields exhibit allocative and economic inefficiencies and do not use inputs in the right combinations necessary to achieve cost minimization. Tobit analysis indicated allocative and economic efficiencies could be improved with better variety selection and better irrigation management.

Keywords

costsdata envelopment analysisefficiencyinputsproductionriceC61D24Q12
Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 46 , Issue 1 , February 2014 , pp. 89 - 106
Copyright
Copyright © Southern Agricultural Economics Association 2014

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