Estimating Allocative and Technical Efficiency of Corporate Farms

Abstract

This study is aimed to analyze Russian corporate farms technical efficiency using DEA and allocative efficiency basing upon VMP calculations. The estimations are carried out on three aggregation levels: total farm, sectors (livestock and crops production) and selected commodities (grain, sunflower, beef, milk and pork), using survey data. The results of the analysis suggest that there is no substantial misallocation of resources given current input and output prices. High technical efficiency scores speak for production technologies being homogeneous. Neither "best practice" extension, nor getting to allocative efficiency will eliminate the large productivity gap between Russia and the developed market economies.