Efficiency Effects of Institutional Factors: Limited-Resource Farms in Northeast Argentina
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This paper analyzes technical efficiency of limited-resource farms operating in a sub-tropical
environment (Province of Misiones, Argentina). Property rights over land, the degree of market exposure
and food support programmes are three institutional variables that are hypothesized to lead to departures
from the production frontier. Econometric analysis indicates that market exposure and receipt of food
transfers increase efficiency. No effect of land ownership is detected. We argue that slash-and-bum
agricultural systems allow non-owners of land to operate as or more efficiently than landowners.