Abstract
The objective of this paper is to apply a Cobb-Douglas, Translog Stochastic Production Function and Data Envelopment Analysis – particularly the Malmquist index - in order to estimate increases or decreases of inefficiencies over time as well as the sources of TFP changes for the main Brazilian grain crops - namely, rice, beans, maize, soybeans and wheat - throughout the most recent data available comprising the period 2001-2006. According to the Cobb Douglas model, the greatest elasticity presented is that of harvested area, followed by agricultural credit and limestone. The Translog production function presents an amelioration of aggregate productivity over time and, in a decreasing order, the Brazilian regions that have presented the greatest relative degree of efficiency are the Northeast, North, Southeast, South and Center-West regions. The results indicate that, although there have been positive changes in TFP for the sample analyzed, a decline in the use of technology has been evidenced for all the principal Brazilian grain crops between 2005/2007 – period in which we observe a remarkable downfall in the use of inputs in Brazilian agriculture.
Highlights
The credit variable reveals the second major elasticity, confirming the importance of agriculture credit to cover costs and to execute investments which responds for the greatest share of the data analyzed
As expected, assuming positive and inferior elasticity in relation to the other relevant factors, 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 in 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 as the main grain crops in Brazil – throughout the period that comprehends the years from 2001 to 2006
Summary
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 in main Brazilian grain crops – rice, beans, maize, soybeans and wheat – throughout the 2001-2006 period
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