The objective in this paper is to suggest an alternative method of estimating farmer-specific and input-specific allocative efficiency, taking into account the influence of the methods of application of inputs on output. Further, we compare the proposed measures with those calculated based on...

In the literature, technical efficiency is measured as the ratio of observed output to potential output. Although there is no a priori theoretical reasoning, in the stochastic framework of measuring technical efficiency, the potential output is defined as a neutral shift from the observed...

In production economics, one of the most interesting questions is that of the causal relationship between technical efficiency and allocative efficiency. This as yet remains a puzzle without a unique answer. There are a few theoretical analyses conceptualizing the relationship, but consensus has...