Abstract

The objective of this paper is to apply a Cobb-Douglas, Translog Stochastic Production Function and Data Envelopment Analysis in order to estimate inefficiencies over time as well as respective TFP (Total Factor Productivity) sources for main Brazilian grain crops - namely, rice, beans, maize, soybeans and wheat - throughout the most recent data available comprising the period 2001-2006. The results indicate that, although positive changes exist in TFP for the sample analyzed, a decline in the use of technology has been evidenced for all grain crops in which it is observed a historical downfall in the use of inputs in Brazilian agriculture

Highlights

  • The results indicate that, positive changes exist in TFP for the sample analyzed, a decline in the use of technology has been evidenced for all grain crops in which it is observed a historical downfall in the use of inputs in Brazilian agriculture

  • As expected, assuming positive and inferior elasticity in relation to the other relevant factors, Journal of Operations and Supply Chain Management 2 (2), pp 20 - 34, C International Conference of the Production and Operations Management Society limestone contributes for productivity by correcting sole acidity, which assumes a maximizing role for the potential of productivity already established by the other factors

  • The technique of Stochastic Frontier Analysis has been applied for the estimation of increase or decrease in inefficiencies through time, as well as the linear programming method Data Envelopment Analysis and Malmquist index for the analysis of TFP sources for the Brazilian crops of beans, maize, soybeans, wheat and rice – considered the main grain crops in Brazil – throughout the period that comprehends the years from 2001 to 2006, the most recent data available

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Summary

Introduction

The Stochastic Frontier Analysis – SFA is an analytical approach that utilizes econometric (parametric) techniques whose models of production recognize technical inefficiency and the fact that random shocks beyond producers’ control may affect the product. By the application of non-parametric methods as Data Envelopment Analysis – DEA, the Malmquist index is calculated by distance functions obtained by mathematical programming and allows for the absence of price information, utilizing physical quantities of multiple inputs and products instead. The objective of this paper is to apply the Stochastic Frontier Analysis technique in order to estimate increase or decrease in inefficiencies through time, as well as the linear programming method Data Envelopment Analysis, namely the Malmquist index, for the analysis of change in TFP (Total Factor Productivity) in main Brazilian grain crops – rice, beans, maize, soybeans and wheat – throughout the 20012006 period

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