The Relationship between Techinical Efficiency and Firm Size Revisited

Abstract

In this study, the efficiency levels of a sample of Missouri grain farms are measured through alternative frontier estimation procedures. Different estimation approaches are found to significantly alter both the average technical efficiency of the sample and the technical efficiency levels of individual firms. The relationship between farm size and techical efficiency is also found not to be robust to the choice of estimation technique. A latent variable model that reconciles conflicting efficiency series by accounting for measurement error is estimated in this study. Within this framework, a positive relationship between farm size and efficiency is supported. Dans la presente etude, le niveay d'efficancite d'un echantillon de fermes cerealiers du Missouri est mesure par diverses methoes d'estimation des frontieres. Differntes avenues d'estimation modifient signigicativement a la fois l'efficacite technique moyenne de l'echantillon et les niveaux d'efficacite technique de chaque exploitation. En outre, le rapport entre l'etendue de al ferme et l'efficacité technique fluctuatit selon la méthode d'estimation utilisée. Les auteurs analysent un modèle par variables latentes, qui permet de raccorder des sé d'efficacité opposées en prenant en compte l'erreur de mesure. Le modé conforte l'hypothése d'une relation positive entre la taille de la ferme et son degrè d'efficacité technique.

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