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Abstract
This paper presents insights into how human and social capital factors
improve production efficiency in impoverished rural areas. A stochastic
frontier production function is estimated for over 400 Honduran maize
producers. Deubreu-Farrell technical and allocative measures are
calculated relative to the observed "best practice" production frontier.
Group means compare efficiencies by various socioeconomic
characteristics that are intuitively related to production, but have not yet
been examined. Efficiency is positively related to proportion of output
marketed, education, health and experience. Personal extension assistance
also improves efficiency, and farmers with no extension assistan,ce are
noticeably inefficient. Religion shows mixed effects on efficiency.