Using stochastic profit frontier analysis to construct typologies of rural micro-regions
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International Food Policy Research Institute
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The field of development economics has contributed significantly in recent years to the last three stages of the policy process: policy design, policy implementation and monitoring, and policy evaluation. Unfortunately, economists have had much less to say about how to better inform the first three stages of the policy process: problem definition, policy formulation, and selection of a preferred policy option. Poverty maps and the applications of cluster analysis are the main contributions that development economists have made to the initial stages of the policy process. These tools have proven to be extremely useful due to their simplicity and directness in identifying populations with urgent needs and common traits, but are somewhat limited to being mere diagnostic techniques because of their one-dimensionality and lack of grounding on a more rational, rigorous, and systematic approach.
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rural areas, agriculture, farmers