Nonparametric Efficiency Analysis for Coffee Farms in Puerto Rico
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Coffee production in Puerto Rico is labor intensive since harvest is done by hand for quality and topography conditions. Färe's nonparametric approach was used to estimate technical, allocative, scale and overall efficiency measures for coffee farms in Puerto Rico during the 2000 to 2004 period. On average Puerto Rico coffee farms were 46% technically efficient, 79% scale efficient, and 74% allocatively efficient.