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Allocation efficiency in agriculture in Madras state


, : Allocation efficiency in agriculture in Madras state. Asian econ. Rev., Hyderabad, 11: 2, 216-20

The proposition that "all resources in traditional agriculture are efficiently allocated" is evaluated using data from farm management reports 1954-55 for Madras state in two crops: cotton-(second season) and cholam (jowar)-(third season). A Cobb-Douglas production function is applied to the data, and use is made of the ratio of marginal value of product to marginal factor cost equal to unity as the criterion for efficient allocation of resources.

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