Caputo, Michael R.

July, 1995

By: Paris, Quirino; Caputo, Michael R.
Agricultural economists' view of duality has often assumed the characteristics of an ambivalent relation. During the eighties, several authors published papers which put in doubt this or that aspects of duality. This study emphasizes the notion that duality is a time-honored approach suitable for solving problems that can be expressed mathematically. Contrary to many assertions that appeared in the agricultural economics literature, duality does not seem to suffer from any theoretical limitations any more than does the formulation of the primal problem. The article presents two problems that can be solved with dual methods. The authors are incapable of deriving the same results using primal approach.

December, 1993

By: Caputo, Michael R.; Lynch, Lori
In the spirit of Leamer's commitment to sensitivity analysis, we employ Farrell's nonparametric efficiency methodology and compare our results with those of Sexton, Wilson, and Wann. Testing the implicit assumption of technical efficiency in the methodology employed by Sexton, Wilson, and Wann, we find that the lack of technical efficiency is the cotton gins' main cause of overall inefficiency. We extend the nonparametric methodology by subjecting the shadow prices of technical efficiency to nonparametric statistical tests to draw stronger conclusions. In addition, the nonparametric methodology permits us to make gin-specific recommendations to improve the performance of the gins.