Zepeda, Lydia

By: Fletschner, Diana K.; Zepeda, Lydia
The relative efficiency levels of 283 rural households from three regions in eastern Paraguay are measured using a nonparametric approach. Technical, allocative, and scale efficiency measures are calculated both at national and regional levels, and factors that may affect the efficiency levels are analyzed econometrically. The three regions selected for this study represent distinct production systems and socio-economic conditions: production of traditional crops or extensive livestock operations; a dynamic region with massive in-migration where capitalized farms produce soybeans and wheat; and an older region, integrated with urban areas, where depleted and highly fragmented land has forced households to rely on nonagricultural sources of income. Nonparametric results show high levels of technical efficiency across all three regions, but low levels of allocative and scale efficiency. Because policies to increase scale efficiency are politically unpalatable, the factors affecting allocative efficiency are explored. Significant factors include employment opportunities, land titling, and access to credit, markets, and extension services.
By: Zepeda, Lydia
A simultaneous equation generalized probit model is estimated to determine factors affecting technology adoption by California dairy farmers. Since productivity and technology choice are jointly determined, a single-equation approach to determine whether productivity affects technology adoption is subject to simultaneity bias. Since the system of equations contains both continuous and discrete endogenous variables, generalized probit is used. The findings indicate that the biased single-equation estimates tend to exaggerate relationships with explanatory variables, and in some cases, lead to different implications. This emphasizes the need to use the consistent and asymptotically more efficient generalized probit results to account for simultaneity.