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© 1987 Oxford University Press and the Foundation for the European Review of Agricultural Economics

research-article

Technical efficiency and size: The case of Illinois grain farms

P. BYRNES, R. FÄRE*, S. GROSSKOPF* and S. KRAFT*

Centre for Naval Analysis Alexandria, Virginia, U.S.A.
*Department of Economics, Southern Illinois University Carbondale, U.S.A.

Received March 1, 1987; Revision received August 1, 1987.

Summary

In this paper the relative productive performance of a sample of Illinois grain farms was gauged using Farrell-type measures of technical efficiency. Mathematical programming methods were used to envelop the data to form a multiple output, multiple input technology relative to which the performance of individual farms was assessed. Using a decomposition of those measures developed by Fare, Grosskopfand Lovell, it was found that the major source of inefficiency was deviation from most productive size of the large farms in the sample.


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