Agricultural and Resource Economics

Inverse Productivity or Inverse Efficiency? Evidence from Mexico

Authors: Justin Kagin, J. Edward Taylor & Antonio Yúnez-Naude. ​​​​​​​Using a unique panel data set from rural Mexico, they find strong evidence of a negative relationship between farm size and both productivity and technical efficiency: large farms not only have a lower value of output per hectare than small farms, they also produce further from the efficiency frontier.