Description
This study examined technical efficiency (TE) in Puerto Rico’s agricultural sector across municipalities from 1998 to 2012 using Stochastic Frontier Analysis (SFA) with the Battese-Coelli 1992 (BC92) model. Panel data from the Puerto Rico Census of Agriculture was used to create a Cobb-Douglas production frontier, with agricultural sales as the output and inputs including machinery, salary, livestock, feed, medicine, seed, fertilizer, fuel, chemicals, and cropland. The BC92 model, featuring a time-varying inefficiency decay, identified cropland and salary expenses as key output drivers. TE scores revealed large disparities. A Random Effects Tobit model analyzed the impact of efficiency determinants like education, age, and chronic illnesses, highlighting significant variation. Findings emphasize the need for targeted policies to address input inefficiencies and enhance human capital to improve regional agricultural productivity.
| Affiliation / University / Organization | University of Puerto Rico - Mayaguez Campus |
|---|
