AN ANALYSIS OF ECONOMIC-EFFICIENCY IN AGRICULTURE - A NONPARAMETRIC APPROACH

A nonparametric analysis of technical, allocative, scale, and scope ef ficiency of agricultural production is presented based on a sample of Wisconsin farmers. The results indicate the existence of important eco nomies of scale on very small farms, and of some diseconomies of scale for the larger farms. Also, it is found that most farms exhibit subst antial economies of scope, but that such economies tend to decline sha rply with the size of the enterprises. Finally, the empirical evidence suggests significant linkages between the financial structure of the farms and their economic efficiency.