Total factor productivity efficiency as a benchmark of farm performance

Steele West

Research output: Contribution to conferenceConference presentation/ephemera

Abstract

Taking a departure from conventional nonparametric benchmarking studies, this study benchmarks the performance of commercial farms in Western Australia’s Wheatbelt region using Total Factor Productivity efficiency (‘TFP efficiency’) and compares the results to those of conventional Debreu-Farrell technical efficiency measures that are orientation restricted. It is found that those two measures of farm performance differ and are influenced by different sources of farm heterogeneity. Therefore, derived policy insights and prescriptions also differ. The use of TFP efficiency is recommended to provide policy insight on how a decision making unit can maximize productivity relative to the best performing farms within a population sample.
Original languageEnglish
Publication statusPublished - 2 Oct 2019
Event2019 West Australian Agricultural and Resource Economics Conference - University of Western Australia, Perth, Western Australia, Australia
Duration: 2 Oct 20192 Oct 2019

Conference

Conference2019 West Australian Agricultural and Resource Economics Conference
CountryAustralia
CityPerth, Western Australia
Period2/10/192/10/19

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