Level Of Allocative Efficiency Research Articles

Analysis of Allocative Efficiency of Watermelon Farming in Kapuas Regency, Central Kalimantan Province

The objective of this research is to analyze the costs, revenues, and profits of watermelon farming, to examine the impact of the use of production factors in watermelon farming, and to evaluate the allocative efficiency level of watermelon farming in Kapuas Regency, Central Kalimantan Province. The population of this research consists of 113 farmers, from which 55 were selected using simple random sampling techniques. The data processing method used to analyze the costs, revenues, and profits of watermelon farming includes using a multiple linear regression model, specifically the Cobb-Douglas function type. Additionally, to analyze the allocative efficiency of production factors used by farmers in watermelon farming, the comparison of a production factor’s Marginal Product Value (MPVx) with the price of the production factor (Px) is set to be equal to 1. Based on the results of the research and data processing, the average revenue obtained from watermelon farming in Kapuas Regency is IDR 75,619,181.82 per farm, and the average profit earned by watermelon farmers is IDR 45,541,259 per farm. The statistical test results of the Cobb-Douglas production function show that collectively (simultaneously), the production factors (land area, number of seeds, organic fertilizer, inorganic fertilizer, pesticides, and labor) significantly affect watermelon production. However, the partial test results indicate that the production factors of land area, seeds, organic fertilizer, inorganic fertilizer, and labor significantly affect watermelon production, except for the production factor of pesticides. The statistical test results for allocative efficiency (price efficiency) show that three production factors, namely organic fertilizer, labor, and pesticides, are used efficiently, meaning the marginal product equals the price of the production factor. The use of land area, seeds, and inorganic fertilizer is not yet efficient and needs to be increased to reach an efficient point.

Determinants of technical and allocative efficiencies in catfish (Clarias gariepinus) Production in South-East, Nigeria

The study analysed technical and allocative efficiencies and their determinants in Southeast zone of Nigeria with the objectives of examining and identifying the socioeconomic characteristics of the catfish farmers in the area, the technical and allocative efficiency levels of the farmers, the determinants of technical and allocative efficiencies in catfish production, and the effect of pond systems on technical and allocative efficiencies. Multi stage and simple random sampling procedures were adopted in the selection of 384 respondents for the study. The results showed that majority of the farmers were males, educated up to secondary school level, with the mean fish production experience of 9.6 years, and high use of family labour. It was also found that average stocking rate was 2,500 per production phase with average duration of production of 6months. The result on the efficiency distribution showed that the mean technical and allocative efficiency levels of the farmers were 0.73 and 0.87 respectively. The results further pointed out that the socio-economic characteristics included in the study significantly contributed to technical and allocative efficiencies of catfish farmers in the area with experience standing out as the most important. Lastly, it was found that farmers who farmed in earthen ponds allocated their resources more efficiently.

Efisiensi Alokatif Usahatani Jagung Pipil Di Desa Bange Kecamatan Sanggau Ledo Kabupaten Bengkayang

<p><em>This study aims to analyze the allocative efficiency of shelled corn farming in Bange Village, Sanggau Ledo District, Bengkayang Regency. Location selection is done intentionally. Data collection was obtained from the results of direct interviws with farmers with the help of a list of questions in the form a questionnaire. The analytical method used is the analysis of Cobb-Dauglas production function and allocative efficiency analysis. The results showed that the variables in the form of land area, seeds, labor, manure, urea fertilizer, NPK fertilizer, and gramaxone had an effect on the production of shelled corn. The level of allocative efficiency on the variables of land area, seeds, labor, manure, urea fertilizer, NPK fertilizer, and gramaxone have not been efficient.</em><em></em></p>

Analysis of Production Function and Allocative Efficiency of Seed Water Spinach in Sumurcinde Village Soko District Tuban Regency

Farmers employ several production variables that affect the quantity of Seed Water Spinach in the cultivation of Seed Water Spinach. This study aims to determine the production factors that affect Seed Water Spinach farming and the level of allocative efficiency of Seed Water Spinach production inputs in Sumurcinde Village, Soko District, Tuban Regency. Sixty-seven farmers were included in the study's sample size, and primary and secondary data were utilised. The variables used include seeds (X1), phonska fertiliser (X2), urea fertiliser (X3), power grow fertiliser (X4), pesticides (X5) and labour (X6). The analysis method used is Coubdoglas function analysis to see which factors affect the production of Seed Water Spinach. Meanwhile, the efficiency of production inputs will be analysed using allocative efficiency analysis. The results were partially Powergrow (X4) significantly affected Seed Water Spinach production. In contrast, Seed (X1), Phoska fertiliser (X2), urea fertiliser (X3), Pesticide (X5) and Labor (X6) did not have a significant effect on seed Seed Water Spinach production. According to the allocative efficiency analysis, using power-grow fertiliser has not been practical, so more power-grow fertiliser must be used to maximise Seed Water Spinach's output.

A combinatorial auction to sell TV broadcasting rights in league sports

The centralized sale of TV broadcasting rights in league sports constitutes a cartel which in many European countries is allowed only if it complies with certain conditions set by competition authorities. Two of the most important conditions are: i) partial unbundling, i.e. the rights must be unbundled into several separate packages; and ii) the no-single-buyer rule, i.e. the packages must be sold to different broadcasters. This article shows how a combinatorial auction can be employed to sell broadcasting rights allocating them endogenously based on the broadcasters’ bids and, thus, without requiring the seller to pre-determine the packages of such rights. This feature can address various competition policy issues, including facilitating market entry and preventing coordination among bidders. Also, a combinatorial auction has the potential to achieve higher levels of allocative efficiency and higher revenue levels compared to auctions with pre-determined packages of broadcasting rights.

EFISIENSI PENGGUNANFAKTOR-FAKTOR PRODUKSI PADA USAHA PEMBESARAN IKAN NILA (Oreochromis niloticus)

The use of production factors (ponds, seeds, organic fertilizers, lime, feed and labor) in tilapia growing business is a factor that plays an important role in determining the level of efficiency. This study aims to determine and analyze the efficiency of the use of production factors in tilapia enlargement business, namely technical efficiency, factors that affect the level of technical inefficiency, allocative and economic efficiency. The research method uses a survey method. The determination of the research location was carried out purposively in the City of Tasikmalaya. Determination of samples taken from a population of 314 people using the proportional random sampling method obtained 76 cultivators of tilapia enlargement business. The research was conducted from March to July 2022. Data were analyzed using the stochastic frontier production function model and the dual frontier cost function using Frontier 4.1 software. The results showed that the use of production factors in tilapia rearing business was not efficient with an average technical efficiency level of 0.68 and the factors influencing technical inefficiency were business experience and the number of family dependents; the average allocative efficiency level is 0.76; and the average economic efficiency of 0.53

Efisiensi Ekonomis Usahatani Kelor Organik Di Moringa Organik Indonesia Blora Jawa

Limitless study that conducted on moringa farming inversely to the benefits that have been felt by many people. Both as herbal medicine and as an alternative vegetable. The research has purpose to get know about the economical moringa used as community farming with examining the economic efficiency of moringa farming in Blora Regency precisely in Moringa Organic Indonesia Corp. Information and data were obtained from twenty respondents of Moringa farmers who have been cultivating Moringa for the last five to seven years. The data were analyzed using the Cobb Douglas production function approach and stochastic frontier analysis which will measure technical, allocative and economic efficiency. The results showed that: 1) Moringa farming in Blora has achieved technical efficiency. The average technical efficiency is 0.93. The lowest technical efficiency is 0.8 and the highest is 1.00; 2) The level of allocative efficiency of Moringa farming is on average 1.00 so that it is declared perfect efficiency; 3) Moringa farming in Blora achieves an economic efficiency of 0.93. It is hoped that the results of this study will provide information to the wider community that Moringa is one of the economic commodities that can be used as a source of income and can improve welfare in addition to meeting the nutritional needs of the community.

Assessment of allocative efficiency of smallholder tea farmers in south-western Uganda

Tea ranks third after coffee and fish in terms of export value in Uganda’s crop sector. Smallholder productivity and efficiency in Uganda remains a paradox, especially in perennial crops, with past research presenting mixed results on allocative efficiency. The objective of this study was to determine allocative efficiency and its influencing factors among smallholder tea farmers in western-Uganda. A cross-sectional survey dataset was collected from a random sample of 170 tea farmers from Kabale and Kanungu districts in south-western Uganda. The study employed a Stochastic Frontier Approach and the Value of Marginal Product Approach in determining the input elasticities and allocative efficiency levels respectively. Results showed that average allocative efficiency scorers for land, fertiliser, labour and herbicides were 11.17, 1.68, 3.08 and 4.43, respectively; indicating under-utilisation of the inputs. Ordinary Least Squares estimates indicated that allocative efficiency score of fertiliser was positively related to farm size, herbicide type and extension visits. The allocative efficiency score for herbicides was positively influenced by extension access and herbicide type. Similarly, the allocative efficiency score for land was positively influenced by extension access while that of labour was positively influenced by farm size. The results indicate that increasing the scale of tea production in the region is likely to improve productivity and profitability since the average allocative efficiency scores were greater than unity.

Efficiency Analysis Sand and Stone Mining: Production Stochastic Frontier Modeling

This research aims to analyze the effect of capital, cost, working hours, labor, technology, analyze the most influential variables on the production of sand and stone and determine the level of technical efficiency, allocative efficiency, and economic efficiency. The analysis technique uses the Stochastic Frontier Analysis MLE method. The results showed that capital, cost, and technology variables have no significant effect, labor has a positive and significant effect. The most influential variable on sand and stone production in Banyumas Regency is labor. The level of technical efficiency in the production of sand is 0,829418, and stone is 0,743271. The level of allocative efficiency of sand production is 1,799976 and stone 1,997888. The level of economic efficiency of sand production is 1,492933 and stone 1,484972. The production of sand and stone has reached technical efficiency but has not yet reached allocative efficiency and economic efficiency.

Determination of Effectiveness and Efficiency of Production Factors in Sweet Potato Farming in Lamongan, Indonesia

Food crops have a strategic role in agricultural development, covering food security growth, opening up employment opportunities, and income sources in regional and national economies. This research aims to determine the relationship patterns of sweet potato farming production factors. This research utilized a quantitative approach with the survey method. The data were obtained through questionnaires, and the sampling method used a census of 348 respondent farmers in six sweet potato center villages. The Maximum Probability Estimation frontier 4.1 method was employed to calculate the technical efficiency of sweet potato farming. The results showed that the production factors significant at the trust level of 99 percent, 90 percent, and positive value for sweet potato production in Lamongan Regency, Indonesia, were land area production, Urea fertilizer, Phonska fertilizer, ZA fertilizer, and SP36 fertilizer. The technical efficiency attainment level of sweet potato farming was very high, indicating that sweet potato farming in the research was efficient, with an average technical efficiency of 0.90 percent. The achievement level of allocative efficiency on sweet potato farming was relatively low, implying that sweet potato farming was inefficient, with an average localized efficiency of 0.50 percent. The economic efficiency of sweet potato farming was very low, depicting inefficient sweet potato farming, with an average economic efficiency of 0.48 percent. Therefore, sweet potato farmers must optimize land use, ZA, Urea, SP36, and Phonska to produce sweet potatoes optimally to support food security.

Efisiensi Alokatif Usahatani Nanas di Kecamatan Rasau Jaya Kabupaten Kubu Raya

Research on the allocative efficiency of pineapple farming in Rasau Jaya District is important because of the low production due to the minimal use of production input factors. Farmers can still increase pineapple production by using efficient production factors. The purpose of this study was to analyze the effect of the use of production factors and to analyze the level of allocative efficiency of pineapple farming in Rasau Jaya District. The data analysis used is the analysis of allocative efficiency and looks at the marginal product value of NPM / Px. The results of the regression analysis show that the use of TSP inputs has an effect on pineapple production in Kubu Raya Regency, while other variables have no effect. The level of allocative efficiency of pineapple farming in Rasau Jaya Subdistrict is inefficient for variable land area, urea, TSP, phonska, protepon and labor. Meanwhile, the inefficient variables were seeds, fertilizers and gramaxone.

EFISIENSI ALOKATIF PENGGUNAAN FAKTOR-FAKTOR PRODUKSI PADA USAHATANI PADI SAWAH DI KECAMATAN KUPANG TENGAH KABUPATEN KUPANG

This research has been carried out in Kupang Tengah District, Kupang Regency in July-August 2019, with the aim to determine the effect of the use of production factors and allocative efficiency level of their use on lowland rice farming in Kupang Tengah District, Kupang Regency. The selection of research location was conducted purposively with the consideration that Noelbaki Village is the producer of paddy rice with the largest land area in Kupang Tengah District and is supported by the existence of both technical and simple irrigation systems. The research sampel was taken by proportional random sampling of 9 land owners and cultivator farmers and 67 cultivator farmers from 321 rice farmers. The results showed that the factors of production at the same time significantly affected the production of lowland rice. While partially, land area variable (X1), NPK fertilizer (X3), SP36 fertilizer (X4), urea fertilizer (X5), capital (X8), and dummy superior seed varieties (XD1) significantly affect paddy rice production, whereas seed variables (X2), pesticides (X6), labor (X7) and dummy land ownership status (XD2) variables are not significant in influencing lowland rice production. Allocative efficiency analysis shows that the use of land production factors, pesticides and capital is not efficient so it is necessary to increase its use. While the factors of seed production, NPK fertilizer, SP36 fertilizer, urea fertilizer and labor production factors are inefficient so their use needs to be reduced.

The Efficiency of Red Chili Farming In Merapi Eruption Area, Yogyakarta, Indonesia

Changes in soil texture after the Merapi eruption in 2010 does not affect farmers in using the production factors, resulting in non-optimal production. This study aims to analyze the factors affecting red chili production and the level of technical, allocative, and economic efficiency of red chili farming in the Merapi eruption area, Sleman Regency Yogyakarta. This study utilized a quantitative method. A total of 80 farmers was selected as samples by using a simple random sampling method. Data were analysed using the Cobb-Douglas Stochastic Frontier production model. The input side approach analysed the allocative and economic efficiency. The results showed that only land area and manure factors that significantly affected the production of red chili. The average of farmers had reached technical efficiency level with an index of 0.826 and allocative efficiency level with an index of 0.804. However, they had not achieved economic efficiency because the efficiency level merely reached the 0.665 indexes. Meanwhile, four internal factors of farmers, namely age, education level, farming experience, and land ownership status, had an insignificant influence on technical inefficiencies.

PENENTUAN TINGKAT EFISIENSI ALOKATIF DAN EFISIENSI TEKNIS PADA USAHATANI JAGUNG MANIS ( Zea mays saccharata L. ) DI KECAMATAN KUPANG TIMUR

Research about the determining of allocative and technical efficiency level of sweet corn farming in East Kupang Sub District aims to find out the effect of the use of production factors toward sweet corn production; to analyze the level of allocative efficiency of its use; and to analyze the level of production technical efficiency of sweet corn. The research location was chosen by purposive sampling with the consideration that Oesao village and Pukdale are villages where produce sweet corn in East Kupang Sub District. The sample of research respondents was taken by simple random sampling with 79 respondents consisting of 35 farmers from Oesao village and 44 farmers from Pukdale village. The collect of data had been carried out as long as February to March 2020. The reseach results showed that the factors of land, seed, and urea production significantly affected the production of sweet corn, while the factors of NPK, pesticides and labor production had no significant effect. The level of efficiency can be reached through allocate production inputs precisely. In this case, by reducing the use of land and urea fertilizer, on the other hand, by adding the use of seeds. Also, the farmer production level technically is not efficient yet with the average of actual production level is 10,408 grains or around 1,487 kg, while the average frontier production level is 28,146.64 grains or around 4,021 kg. There are 39 farmers who their technical efficiency in low level category, than, 28 farmers in moderate level category, and as many as 12 farmers have reached a level of technical efficiency.

BROILER POULTRY FARMING OPEN HOUSE SYSTEM PATTERNS STOCHASTIC FRONTIER OF ECONOMIC, TECHNICAL AND ALLOCATIVE EFFICIENCY OF IN LAMONGAN REGENCY EAST JAVA

19Jan 2020 BROILER POULTRY FARMING OPEN HOUSE SYSTEM PATTERNS STOCHASTIC FRONTIER OF ECONOMIC, TECHNICAL AND ALLOCATIVE EFFICIENCY OF IN LAMONGAN REGENCY EAST JAVA Niswatin Hasanah , Zaenal Fanani , Suyadi and Bambang Ali Nugroho Animal Husbandry Departmentof Polythecnic State Jember. Postgraduate Animal Husbandry of Brawijaya University.

VCG mechanism for multi-unit auctions and appearance of information: a subject experiment

This paper investigates whether, in multi-unit auctions, different types of appearance of information associated with bidding generate different levels of allocative efficiency and sellers’ revenue when the VCG mechanism is applied to human subject experiments of those auctions. We examine two types of appearance of information about bidders’ valuations of the item given to them and the bids they are asked to submit: One type is unit valuations and the unit bids themselves and the other type is unit valuations and the unit bids multiplied by the number of units. We observed that there was no significant difference on average in either allocative efficiency or the seller’s revenue between these two types of appearance of information. Rather, for each appearance of information, there was a significant difference in subjects’ bidding behavior between different display types of draws of unit valuations. This behavioral difference, however, did not significantly affect allocative efficiency. The performance of the VCG mechanism is robust against display types of those draws as well as against types of appearance of information.

Analysis of Production Function and Allocative Efficiency of Sweet Potato Farming in Hulu Palik Subdistrict of North Bengkulu District

The aims of the research are to 1) determine factors that affect the production of sweet potato, 2) to determine the level of allocative efficiency of sweet potato production inputs. The location of this study was determined intentionally (Purposive), in the Subdistrict of Hulu Palik, North Bengkulu Regency. with consideration that in Hulu Palik Subdistrict is the biggest producer of sweet potato in North Bengkulu Regency. Sampling was carried out using the Census Method. with a sample of 92 farmers. Data analysis used multiple linear regression method using Cobb-Douglas production function and allocative efficiency analysis. The results showed that the factors of production of land area of sweet potato seeds and phonska fertilizer had a significant and positive effect on sweet potato production. Results The analysis of allocative efficiency shows the Marginal Product Value of the production factor of land area, sweet potato seed and phonska fertilizer greater than one. This means that the use of phonska production factors for land area, seeds, and fertilizer is not efficient Keyword : sweet potato farming, production. efficiency alokatif

Assessing the Economic Efficiency of Milk Production Among Small-scale Dairy Farmers in Mukurweini Sub-county, Nyeri County, Kenya

Kenya boasts of having the best dairy sector in the region. The sector is the best performing in the agricultural sector, contributing 17% to the agricultural gross domestic product (GDP) annually. It is dominated by small-scale farmers who account for the highest amounts of milk produced in the country especially in the Central and Rift Valley regions. These areas are most vigilant in dairy farming in Kenya and share ecological conditions and the same breed of animals, however, some areas produce the expected 20 litres per cow per day while others produce below that at about 5 litres per cow per day. Mukurweini sub-county in Nyeri County of Central region of Kenya is an area with intensive dairy farming but producing low amounts of milk, thus, the reason for selecting it for this study. Cross-sectional data on socio-economic factors and milk production in the past one month were collected from the 91 small-scale dairy farmers sampled in 2017, using semi-structured questionnaires. The study used the Stochastic Frontier model to analyze the technical, allocative and economic efficiency of milk production, while Tobit model was used to assess the factors associated with economic efficiency. The results indicated that the farmers had a mean of 68.7% in technical efficiency, 91.3% in allocative efficiency and 62.6% in economic efficiency. The results showed that the economic inefficiency among the farmers is mostly caused by low technical efficiency since the farmers indicated high levels of allocative efficiency. From the findings, there were considerable production inefficiencies and thus there was room for increasing productivity through the use of available inputs and reducing costs. Farmers having increasing returns to scale (IRS) showed that enhanced utilization of the available resources would yield a proportionate increase in the milk output. Increasing herd sizes, feeding animals with enough concentrates and ensuring the animals’ health care costs are met were found to be some of the solutions to the low milk v productivity among the small-scale farmers. At the same time, older farmers were found to be responsible for technical inefficiencies in milk production. The cost of concentrates and other feeds was found to be the major component of the total cost of dairy production. However, the allocative efficiency level among the farmers was quite high, an indication that the farmers in the study area, though resource-poor, were efficient at minimizing costs. The study indicated that age, household size, having dairy farming as the main source of income, hired labour and monthly cost of concentrates were the significant factors associated with economic efficiency among small-scale dairy farmers in Mukurweini. Price subsidies on dairy inputs, especially concentrates, as well as better milk prices, are some of the interventions that will see an increase in efficiency resulting in an increase in milk productivity.

Analisis Efisiensi Usahatani Kedelai Studi Kasus pada Kabupaten Lampung Timur, Provinsi Lampung

Almost the entire planting of soybean commodity on Sumatra island has decreased. Mostly due to the low soybean productivity so that soybean farming is less attractive and encourages many farmers to switch to other commodities such as corn, peanuts and cassava. The low productivity of soybean is also due to limited capital to buy production facilities in the form of seeds, fertilizers and pesticides while the price of production facilities which from year to year tend to increase, especially the price of artificial fertilizers and pesticides Besides, the price of soybean during the harvest time is not stabilized and often less profitable farmers. This study aims to measure the level of economic efficiency that includes technical efficiency and allocative efficiency (price) in soybean farming in East Lampung, so it is expected to know the influence of the number of inputs used in soybean farming on the resulting output. Analytical methods used technical efficiency analysis using Data Envelopment Analysis (DEA) application, cost / allocative efficiency analysis and economic efficiency analysis. The results showed that the average technical efficiency of soybean farming system = 1 means that in general the soybean farming has reached the level of technical efficiency. The average value of the allocative efficiency of 1,4 means that on average the allocative efficiency level of oybean farming has not been achieved. The value of economic efficiency 1.4 is greater than 1. This means that maximum economic efficiency in East Lampung regency has not been achieved, therefore the use of production factors need to be added in order to achieve efficiency condition.

Decomposing firm-level productivity growth and assessing its determinants: evidence from the Americas

This paper provides novel empirical evidence on productivity growth in the manufacturing sector in Chile, Colombia, Mexico and Peru. Relying on plant-level data, we first decompose productivity and productivity growth into plant-level growth and market allocation forces. While the average productivity of the survivors is higher than the overall contribution of reallocation forces, during recessions the inverse is true and reallocation gives a positive, albeit small, contribution to aggregate productivity growth. Next we analyze how policy measures can determine allocative efficiency levels and growth, and find important scope for action on education, financial regulation, and structural reforms.