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Abstract
This paper demonstrates that the conventional Domestic Resource Cost (DRC) indicator is
biased against factor-intensive, low-input techniques, and that a simple Social Cost-Benefit (SCB) ratio is
generally a more appropriate measure of economic efficiency. The potential policy significance of
improved measurement is shown with data from Zimbabwe and Kenya. In Zimbabwe, the DRC is shown
to incorrectly rank high-input large-scale farming systems above more Jabour-intensive smallholder
systems; in Kenya, the DRC incorrectly ranks high-input horticultural crops above more Jabour-intensive
food grains and traditional export crops.