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How Might Shadow Price Restrictions Reduce Technical Efficiency? Evidence from a Restricted DEA Analysis of Coffee Farms in Vietnam
Author(s) -
Garcia Andres F.,
Shively Gerald E.
Publication year - 2011
Publication title -
journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.157
H-Index - 61
eISSN - 1477-9552
pISSN - 0021-857X
DOI - 10.1111/j.1477-9552.2010.00269.x
Subject(s) - shadow price , data envelopment analysis , economics , sample (material) , shadow (psychology) , measure (data warehouse) , econometrics , agricultural economics , mathematics , statistics , computer science , psychology , mathematical optimization , chemistry , chromatography , database , psychotherapist
We use data from smallholder coffee farms in Vietnam to measure the technical efficiency of coffee producers, and the degree to which potential restrictions on the shadow prices of chemical inputs might reduce overall efficiency among these farmers. Using input‐oriented data envelopment analysis (DEA) we find the use of pesticide and herbicide accounts for a relatively small proportion of overall technical efficiency in the sample. We place restrictions on input shadow prices and show that restricting their importance does not dramatically alter patterns or measures of short‐run efficiency.