Assessing farm efficiency through quantities or revenues and costs: does it matter?
We examined the effect of using input and output quantities as compared with costs and revenues when estimating farm-level efficiency scores and ranking. We used farm-level data from the 2015 Ethiopia Rural Socioeconomic Survey (ERSS) where production inputs and outputs in quantities as well as mone...
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| Veröffentlicht in: | Journal of agricultural and applied economics 2023-08, Vol.55 (3), p.551-565 |
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| creator | Tirkaso, Wondmagegn Tafesse |
| description | We examined the effect of using input and output quantities as compared with costs and revenues when estimating farm-level efficiency scores and ranking. We used farm-level data from the 2015 Ethiopia Rural Socioeconomic Survey (ERSS) where production inputs and outputs in quantities as well as monetary units could be distinguished. Average technical efficiency scores of 72.2% and 68.6%, respectively, were found for analysis based on quantities and on costs and revenues. Efficiency ranking differed significantly. Results suggest that type of data compilation introduces bias to the efficiency assessment and that conclusions may be unclear, which complicates policy advice. |
| doi_str_mv | 10.1017/aae.2023.30 |
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We used farm-level data from the 2015 Ethiopia Rural Socioeconomic Survey (ERSS) where production inputs and outputs in quantities as well as monetary units could be distinguished. Average technical efficiency scores of 72.2% and 68.6%, respectively, were found for analysis based on quantities and on costs and revenues. Efficiency ranking differed significantly. Results suggest that type of data compilation introduces bias to the efficiency assessment and that conclusions may be unclear, which complicates policy advice.</description><identifier>ISSN: 1074-0708</identifier><identifier>ISSN: 2056-7405</identifier><identifier>EISSN: 2056-7405</identifier><identifier>DOI: 10.1017/aae.2023.30</identifier><language>eng</language><publisher>Baton Rouge: Cambridge University Press</publisher><subject>Accounting ; Agricultural economics ; Agricultural production ; Agriculture ; Business Administration ; Correspondence ; Cost analysis ; Costs ; Data envelopment analysis ; Datasets ; Efficiency ; Farmers ; Farms ; Företagsekonomi ; Output ; Prices ; Production factors ; Ranking ; Revenue ; Variables</subject><ispartof>Journal of agricultural and applied economics, 2023-08, Vol.55 (3), p.551-565</ispartof><rights>The Author(s), 2023. Published by Cambridge University Press on behalf of the Southern Agricultural Economics Association. 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| source | Cambridge Journals Open Access; DOAJ Directory of Open Access Journals; Elektronische Zeitschriftenbibliothek - Frei zugängliche E-Journals; SWEPUB Freely available online |
| subjects | Accounting Agricultural economics Agricultural production Agriculture Business Administration Correspondence Cost analysis Costs Data envelopment analysis Datasets Efficiency Farmers Farms Företagsekonomi Output Prices Production factors Ranking Revenue Variables |
| title | Assessing farm efficiency through quantities or revenues and costs: does it matter? |
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