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Title: Assessing the Technical and Allocative Efficiency of U.S. Organic Producers
Authors: Park, Timothy A.
Lohr, Luanne
Keywords: organic farming
stochastic frontier
technical and allocative efficiency
JEL Codes: D21
Issue Date: 2010-05-01
Abstract: We develop measures of technical and allocative efficiency of producers in marketing certified organic products. A stochastic output distance frontier and the associated revenue share equations are estimated using comprehensive U.S. data on certified organic producers. Farm-level measures of technical efficiency are calculated and factors that enhance performance are identified. Factors that systematically influence allocative efficiency are assessed. The revenue mix of organic producers is systematically inefficient as both male and female producers rely too heavily on revenue from organic markets relative to conventional outlets.
Institution/Association: Journal of Agricultural and Applied Economics>Volume 42, Number 02, May 2010
From Page: 247
To Page: 259
Collections:Volume 42, Number 02, May 2010

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