Input Allocation Research Articles

Within-Firm Productivity Dispersion: Estimates and Implications

This paper develops a flexible recipe for identifying unobserved input allocations, as well as quantity- and revenue-based total factor productivity (TFP) across product lines, for multiproduct producers, using demand- and supply-side information. Applying variants of this recipe to a panel of plants manufacturing machinery in India from 2000–2007 yields sizable within-plant TFP differences. Removing an average plant’s lowest-performing product increases the unweighted average of plant-level revenue-based productivity by 10%–65%. A 1 standard deviation decline in product-level revenue-based TFP generates around a 6 percentage point increase in the probability of dropping that product.

Analysis of Input (Supply) Multipliers for the Maltese Economy on the Basis of the SIOTs for 2010 and 2015

The goal of this study is to present and assess estimates of input (supply) multipliers within the context of the Maltese economy to identify in which economic sectors it is the most beneficial to allocate primary resources with the aim to support economic growth. Via the application of the Ghoshian Supply-Driven Model, this study presents the first highly disaggregated input (supply) multiplier estimates for the Maltese economy based on the 2010 and 2015 Symmetric Input-Output Tables. This study also includes a comparative analysis between the years 2010 and 2015 to assess changes in the input (supply) multipliers ranking across economic sectors. Based on the 2015 Symmetric Input-Output Table, potential output is mostly increased following the additional allocation of primary inputs to the Manufacturing of other non-metallic mineral products sector following the highest input (supply) multiplier estimate, keeping all else constant. Furthermore, based on the 2010 Symmetric Input-Output Table, the Advertising and market research sector registered the highest input (supply) multiplier. The input (supply) multipliers are subject to the traditional input-output framework and the supply-side modelling assumptions. However, they do provide estimates on the potential change in economy-wide output following exogenous primary input shocks in every sector. In other words, the input (supply) multipliers provide policy makers a guide in which economic sector it is most beneficial to allocate primary inputs, such as labour supply, with the aim of supporting economic growth. The derived input (supply) multipliers may be utilised to aid in the formation of industry specific labour market policies with the aim of supporting overall economic expansion.

Profitability and Resource Use Efficiency of Rice Seed Production in Kailali Nepal

Rice crop plays a key role to maintain the food security in Nepal. However, inadequate knowledge on the economics of production hampers the level of production. Thus, this study seeks to analyze the profitability, resource use efficiency, and constraints faced in rice seed production in Kailali, Nepal. 158 households were selected using a simple random sampling technique. The primary data were collected from September to November 2021. The descriptive statistics, Benefit-Cost ratio, Cobb-Douglas production function, and scaling techniques were applied for data analysis using SPSS. Further, gross return NRs.115, 772/ha and benefit-cost ratio1.70 indicated that rice seed production was profitable with the productivity of 3.81 mt/ha. Estimation of resource use efficiency showed that the investment in seed and fertilizer needs to be increased by 53% and 63% respectively. The cost of tillage operations, labour, and agrochemicals should be decreased. The scaling technique resulted that pest in storage, inadequate capital and insufficient training were the major constraints. It is concluded that rice seed production is profitable with better yield, but the necessity was observed for the optimal allocation of inputs. The training, better storage facilities and credit access would be helpful to increase the income of farmers.

Considering Environmental Factors in Technical Efficiency Analysis of European Crop Production

Data Envelopment Analysis (DEA) is a popular tool to determine technical efficiency of agricultural production. One issue that arises in some nonparametric frameworks is the heterogenous endowment with determinate factors, such as agroclimatic conditions. Environmental factors clearly lie outside of the sphere of influence of the decision-maker and pose natural limits to increasing efficiency and productivity of agricultural production. Calls for rationalization or better allocation of production inputs might thus not be adequate if concerned studies do not properly account for exogeneous factors of efficiency. The presented paper addresses the existing attempts to deal with the issue and analyzes the effect of soil quality on technical efficiency, calculated for crop producers of 122 European regions (FADN), using a regularly employed two-stage DEA framework. The effect of soil quality is then accounted for by adjusting the input factor land by a land quality factor. First, results show that environmental factors, e.g., soil quality, have a significant positive effect on technical efficiency. Further, the proposed land adjustment reveals structurally different results for some individual efficiency estimates, which indicates that neglecting the effect of environmental factors on efficiency might yield misleading policy implications.

Classification, technical efficiency, and economic performance of producers in the main productive region of quinoa in Peru

Classifying small agricultural producers based on their technical efficiency and economic performance allows us to gauge the potential to improve yield in the quinoa crop, promote local food security, and improve rural incomes. Consequently, the objective of this study was to characterize and classify quinoa producers at the Peruvian Altiplano based on their productive, economic, and social attributes, so the technical efficiency and economic performance of the identified groups can be analyzed. Hence, 409 surveys conducted among quinoa producers in the Puno region were used to run the statistical analysis using two-stage cluster techniques, stochastic frontier, linear regression, and ANOVA tests. The results revealed that three groups of producers exhibited discriminating variables in the use of fertilizers, organic fertilizers, weed control, application of fungicides, production of quinoa, the total area of all crops, and achievement of economic benefits. It was evidenced that the use of seeds and fertilizers, in optimal quantities, increased yield, and in combination with quinoa sales, were the significant variables to differentiate technical efficiency. The high Andes are characterized by smallholdings, subsistence agriculture and, agrobiodiversity conservation and, although cultivation practices are predominantly low technical efficient, it would be possible to rapidly increase agricultural performance with a better allocation of external inputs. However, this could be done to regional limits, for this reason, the role of public policy is very important so that producers can get broader access to production inputs and technical services.

Potato Fluctuation and Risk Preference of Potato Farming in the Bromo Plateau, Indonesia

Potato farming in Indonesia is performed in the highlands, has a high production risk due to sloping land topography and steep slopes. In addition, low managerial ability in responding to sources of production risk results in the input allocation producing non-optimal production. This research aims to identify production fluctuation and farmers’ risk preferences, measure the level of technical efficiency, and determine the effect of risk preference on technical efficiency. The respondents in this study are 83 farmers. The Just and Pope risk function is used with a utility function approach to finding farmers’ risk preferences. The stochastic Frontier Cobb Douglas processes technical efficiency measurements. While to find out the influence of the factors that influence efficiency, Tobit regression is used. The analysis shows that the respondent’s behave risk-takers amounted to 62.65%. Respondents have not yet reached technical efficiency with an average level of technical efficiency of 0.774. Education, frequency of counseling and training, the application of terrace systems have a significant positive effect on technical efficiency, while land slope has a significant negative impact. Risk preference isn’t affected by technical efficiency and shows positive signs.

Assessing the efficiency of smallholder sugarcane production: The case of Faisalabad, Pakistan

Declining water tables and shrinking irrigation supply are two major challenges for agricultural production that increase production costs of high delta crops in Pakistan. Crop producers may tackle these threats by optimizing the use of available resources. To devise policies for improved resource use and cost reduction, assessing current efficiency levels and their determinants can provide useful information. This research assessed the technical, allocative, and groundwater-irrigation efficiency of smallholder sugarcane farms in Faisalabad, Pakistan using primary data for 56 tubewell solo owners, 37 tubewell shareholders, and 47 water buyers and applying the data envelopment analysis technique. The factor affecting the allocative efficiency were explored using the tobit regression. We found that the groundwater-irrigation efficiency ranged from 92% for the solo owners, 92% for shareholders, and to 83% for water buyers. On average, technical efficiency at sugarcane farms was more than 90%. Solo owners, shareholders, and water buyers achieved only 40%, 28%, and 37% of allocative efficiency, respectively. By improving the allocative efficiency through optimal allocation of inputs, farms can considerably decrease their costs for a given output level. The allocative efficiency was negatively associated with farmers’ age, farm size, tubewell depth, discharge rate and salinity in groundwater. Our findings imply that sugarcane farms can substantially reduce their production costs by installing smaller tubewells that match their crop irrigation requirement and groundwater depth. Further, improving the allocative efficiency of relatively large sugarcane farms, monitoring and regulating groundwater extraction to prevent further increase in groundwater and irrigation and soil management practices to reduce salinity can improve the efficiency.

Farm productivity under financial constraints in developing countries: evidence from maize smallholder farmers in Burkina Faso

AbstractIn this paper, we apply an indirect production function approach to analyze producers’ output and input allocation choices under expenditure constraints. Our estimation results show that financial constraints induced a nonoptimal usage of smallholder farm inputs, resulting in losses in potential productivity of approximately 25%. It appears that the presence of a binding expenditure constraint has led to an underutilization of fertilizer and manure as well as an overutilization of seed.

Misperceiving and misreporting input quality: Implications for input use and productivity

Farmers in developing countries routinely misperceive or misreport input quality for various reasons, which introduces substantial measurement error in farm survey data. In this paper, we motivate and illustrate, both analytically and empirically, the inferential and behavioral implications of misperception and misreporting using a unique crop variety identification data from Nigeria. Using a non-parametric framework for testing the presence of measurement error, we show that crop variety misclassification in our data is mostly driven by misperception. We then demonstrate the inferential challenges of treating misperception as misreporting and vice versa. Finally, we show that misperception induces crowding-in(out) of complementary agricultural inputs but these misperception-driven input allocations may not necessarily be yield-enhancing. As such, rectifying misperception by addressing agricultural input market imperfections may improve farmers’ investment choices and productivity outcomes.

CONTRIBUTION OF GROWTH ENHANCEMENT SUPPORT SCHEME ON RICE FARMERS IN BAYELSA STATE, NIGERIA

The study analyzed contribution of Growth Enhancement Support Scheme on rice farmers in Bayelsa State. Purposive sampling technique was used in the selection of Yenagoa agrozone and Sagbama zone. A sample of 170 rice farmers were randomly selected from ten communities. Data were collected using structured questionnaire, and were analyzed with descriptive statistics such as mean, frequency and table. The results reveal that the mean age of the respondents was 44.5±11.1. Majority 54.7% of the rice farmers were males and 52.9% of the rice farmers were married. Majority 89.9% had one form of formal education or the other, household ranged from 1-5 persons. The result also indicates the mean years of farming experience 35.3±8.1 of the rice farmers. Majority (x = 3.8) of the rice farmers indicated increased in food production as the major benefit of the scheme. From the findings, the major constraints with mean were; telecommunication problem (x = 2.0), Late arrival of inputs (x = 2.0) low limited input allocation (x = 1.7) and distance from redemption centers (x = 2.0). The study concluded that growth enhancement support scheme had very low performance indices in redemption of input; although there is yearly increase in farmers’ participation and service delivery in the scheme. The study recommended that the scheme should be sustained by successive government, improvement in participation of farmers through proper and effective communication and provision of fertilizers with other agro-inputs should be sufficiently supplied to farmers appropriately to enhance production.

Public expenditure allocation, lobbying, and growth

AbstractI develop a two sector model of growth where the final good in each sector is produced using labor and a publicly provided private input (public input). The public input is funded by a proportional tax on the consumption of the two final goods. In the benchmark case, the government allocates the public input between the two sectors to maximize consumer welfare. I contrast the benchmark case to one where the public input allocation is determined via lobbying by firms in the two sectors. In this set up, I first show that allocation of the public input is determined by the relative lobbying power of the firms in the two sectors. Further, lobbying can generate the welfare maximizing allocation only under a very specific set of conditions and, if those set of conditions are not met, then an initial misallocation of the public input gets magnified over time.

Smallholder rice farming practices across livelihood strategies: A case study of the Poyang Lake Plain, China

In the past four decades, the livelihood strategies of Chinese smallholder farmers have become increasingly diversified and individualized, and consequently, their rice growing practices have diverged. However, few studies have identified how rice growing practices change with livelihood strategies. To address this challenge, this study employs an integrated smallholder livelihood strategy framework and uses crosssectional data in 2018 covering 250 smallholder farmers who belonging to 90 households in 10 villages in the Poyang Lake Plain, southern China. The results show that livelihood strategies were grouped into five categories based on the allocation of labor input, and the factors that differentiate the farmers adopting rice farming-dominated livelihoods from other farmers include age, sex, education level, health, annual income, the number of appliances and land area. Farmers who relied heavily on rice growing for their livelihoods grew larger area of rice paddy, invested more per unit area, applied more types of agrochemicals and obtained higher unit yields than those farmers spending most of their time on off-farm enterprises. However, the income of the former was much lower than that of the latter due to the low return of rice farming. There is no significant difference in the application weight of agrochemicals across livelihood strategies, which implies that farmers who do not heavily depend on rice growing excessively apply agrochemicals that cannot effectively increase rice yields. Based on these findings, we suggest that the government should implement measures to substantially increase the return of rice growing and educate rice farmers so they will adopt more environmentally friendly practices for applying agrochemicals.

Assessment of Agricultural Development using SPSS Analysis

Agricultural development is agricultural To realize the power As a process of creating situations is described. Accumulation of knowledge and Availability of technology, Allocation of inputs and outputs These conditions include Agricultural development for agriculture Creates the right atmosphere, Thus crops can be planted, Can be harvested and efficiently Can be processed, reduce poverty May save lives. Agriculture Pest control as part of development Methods are used. Farmers Use the best seeds, good farming Apply principles of practice are being trained. Processing and Marketing firms for new markets In order to gain access, their Improve operational processes, quality It is also advisable to introduce standards. Agricultural development is agricultural Conditions for fulfilling capacity Defined as the process of creation. Accumulation of knowledge in those conditions and availability of technology and of inputs and output Includes allotment. In rural areas Agriculture as the main economic activity Therefore, investing in this sector through poverty alleviation and local development can increase. Agriculture now Economically that is the most profitable business Experts have found. Agricultural Development Strategy (ADS 2015-2035) is Nepal It is a major initiative of the government A competitive, stable agricultural sector And will make the inclusive sector, which Economic growth, improved livelihoods, Job creation and food and provides nutritional security. Evaluation parameters include environmental, social, Economics, Agricultural Extension Service.

Economic efficiency of coastal hotel companies

The article focuses on the analysis of the economic efficiency of Slovenian coastal hotel companies in the period between 2015 and 2018. We applied non-parametric Data Envelopment Analysis to estimate economic efficiency and the panel regression analysis to explain the association between economic efficiency, economic growth, and the hotel location. The results showed that most coastal hotel companies were economically inefficient associated with decreasing returns to scale. As a key source of inefficiency we identified inappropriate allocation of inputs. Given the high concentration of hotels in the municipality of Piran, the hypothesis on higher efficiencies in this location area has been rejected. Most coastal municipalities were negatively related to the economic efficiency of the hotel companies. We also rejected the hypothesis that economic growth affected the economic efficiency of the Slovenian coastal hotel companies.

PRODUCTION INPUTS ALLOCATION AND PERFORMANCE BENCHMARK OF RICE FARMS IN ANAMBRA STATE, NIGERIA

The study analyzed the production input allocation and the performance benchmark of rice farms in Anambra State, Nigeria. Efforts at improving farm management and production notwithstanding, more is yet to be achieved in that regard in Anambra State and Nigeria at large. Past studies concentrated on areas like profitability, resources and production efficiency with little or no focus on benchmarking the production and the pattern of input mix. To achieve the broad objective, four (4) specific objectives were outlined thus: (i) categorized production input patterns based on farm performance and based on expenses (iii) determined a performance standard/ benchmark from the category after identifying the existing standard, (iii) identified the diverse effect of production inputs cost on rice farm output for different production levels, and (v) identify the causal factors of difference in farm performance in the study area. A multi-staged sampling technique was employed in the selection of 120 farms. The study utilized primary data generated by the researcher using structured and pretested questionnaire. Descriptive statistics, net farm income, quantile regression and ANOVA were used for the analysis of the primary data gotten through the administration of a structured questionnaire. The 120 farms were grouped as top performers (40), average performers (40) and below average performers (40). The top performing farms had an average net farm income of N340,305 while the average farms and below average farms had N207,567 and N92,258, respectively. The benchmark standard for rice farms in Anambra State was N390, 500. The basic effects of the cost variables on the farm performance as identified with the quantile regression was that the higher the net farm income, the better the opportunities available to increase performance. The major causal factor of differences in farm outcome were, financial constraints, managerial ability, level of input utilization at the farm level, size of farm, high cost of inputs, pests and diseases, and seasonal variation or climate change. The ANOVA result showed that mean expenditures was not significantly different. The study therefore, recommended that cost management and better production instructions should be taken seriously by the extension agents and government should subsidize agricultural inputs for farmers.

Strengthening European Union fisheries by removing harmful subsidies

Harmful fisheries subsidies have historically contributed to fleet overcapacity and continue to be allocated to the fishing industry to artificially maintain its profitability. However, in this contribution we show that removing harmful subsidies and reducing overfishing will help to recover the resource biomass, subsequently leading to increased levels of sustainable catches, income and well-being of fishers, and reduces inequities in income and consumption when fish stocks are not effectively managed. Maintaining harmful fisheries subsidies is socially and economically inefficient. Taking the example of the EU fishing fleet, one of the largest fishing fleets in the world, we use the total factor productivity to show that small-scale fishing fleet's productivity is almost two-fold in the North Atlantic and 16% higher in the Mediterranean and Black seas compared to large-scale vessels. This result is explained because the harmful fisheries subsidies disproportionately allocated to large-scale vessels introduce distortions in the efficient allocation of inputs. With critical WTO negotiations ongoing regarding the global rules on fisheries subsidies, the EU must take advantage of the opportunity to lead a desirable transformative change while also supporting developing nations to truly achieve global sustainable and equitable fisheries.

Interventions to promote technology adoption in firms: A systematic review.

Interventions to promote technology adoption in firms: A systematic review.

New standards in stochastic simulations of dairy cow disease modelling: Bio-economic dynamic optimization for rational health management decision-making

Bioeconomic models applied to animal health issues are now commonly observed in literature. This section of literature is very heterogeneous and the underlying methods are very diverse, from very simple methods (partial budgeting) to very complex ones. The objective of the present study is to build a new dynamic stochastic optimisation bioeconomic model applied to the dairy cow sector, that goes beyond some limitations usually found in methods used up to now. First, based on a critical literature review, we highlight four issues of bio-economic stochastic simulation models (BESSMs) applied to dairy cow diseases at the farm level. These models appear as partial (the farm system is not considered as a whole), unbalanced (between the economic and biological parts of the model), closed (to the farm environment) and only partially dynamic. To address these 4 main issues and improve the methodological standards in the microeconomics of dairy cow health management, we secondly develop a new bio-economic sequential optimization model (BESOM), called DairyHealthSim. DairyHealthSim aims to better consider both the context of decision-making and the farming system dynamics to define the best health management strategies in a given context. The biological part of the model simulates the complex dairy production cycle with a holistic approach. It is defined on a cow-week basis, and the weekly probabilities for all cow events, including production, reproduction and diseases, are simulated. The economic part of the model is a mean-variance optimization framework that dynamically represents the farmer's input allocation decision process under constraints. The biological and economic parts are closely integrated and the model is running with back and forth between the 2 parts of the bioeconomic model. Third, an application involving farmers' strategies related to biological risk management, labour willingness and market demand is proposed for dairy production and mastitis management. The results highlight the added value of the farming system-driven system coupled to economic optimization approach. DairyHealthSim identifies the optimal scenario for the entire ten-year simulation period or is based on yearly optimization (sequential modelling). The two different optimal solutions found show the usefulness of considering the dynamics and complexities of the actual field situation. The opportunity cost between the best and alternative solutions demonstrates that some solutions are economic equivalents. In conclusion, compared to approaches where the outcome is reduced to the monetary impact of diseases, DairyHealthSim is far more precise and appropriate for supporting decision-making.

Robotic welding for filling shape-varying geometry using weld profile control with data-driven fast input allocation

Robotic multi-pass welding for thick and shape-varying weld geometry is a challenging problem. To achieve good weld quality, desired welding profile for the whole welding bevel is necessary, which requires the welding inputs to be changed appropriately in real-time. In this paper, a welding profile control with data-driven fast input allocation (PC-FIA) algorithm is proposed for robotic multi-pass welding on a shape-varying weld geometry, namely, TYK pipe-to-pipe joint. Firstly, the H∞ control algorithm is used for the welding profile control in order to suppress the error propagation during the multi-pass welding. Secondly, the welding input parameters including torch traveling speed and weaving parameters are allocated using a max−min optimization based on the identified weld input constraint from a data-driven approach. Experimental results show that the weld profile using the proposed method achieves 60% decrease of root-mean-square error with respect to the planned reference, as compared to the case of without using the proposed PC-FIA method. In addition, the allocated weaving parameters ensure that the welding inputs are always maintained within the polyhedral constraint and the whole welding quality is acceptable by industry standard.

Fiscal Devaluation with Endogenous Markups: Productivity and Welfare*

AbstractWe study fiscal devaluation (i.e., revenue‐neutral shift from payroll to consumption tax) in a two‐country model of international trade. We analyze how such a policy modifies competition between heterogeneous producers, endogenous markups, and the allocation of inputs. We show that fiscal devaluation increases (resp. decreases) consumption in the net importing (resp. net exporting) country, regardless of which country implements the policy. Numerical illustrations suggest that fiscal devaluation is a deflationary policy. In most cases, input resources are reallocated to less productive firms, partly because of the deformation of the profit structure along the distribution of productivity.