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Pension Transfers and farm household technical efficiency: evidence from South Africa

Lovo, S. (2011) Pension Transfers and farm household technical efficiency: evidence from South Africa. American Journal of Agricultural Economics, 93 (5). pp. 1391-1405. ISSN 0002-9092

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To link to this item DOI: 10.1093/ajae/aar051

Abstract/Summary

This article analyzes the effect of entitlements from the Old Age Pension Program of South Africa on household technical efficiency using a sample of farm households in South Africa’s KwaZulu-Natal province. The analysis is at the household level, and off-farm activities are considered as additional outputs in a nonparametric estimation of technical efficiency. This approach captures the jointness between farm and off-farm activities. The pension’s effect is identified by exploiting the age-eligibility criteria in the pension program. Results show a positive effect of the pension and suggest that this large cash transfer can improve households’ ability to make use of the best available technologies.

Item Type:Article
Refereed:Yes
Divisions:Faculty of Arts, Humanities and Social Science > School of Politics, Economics and International Relations > Economics
ID Code:67247
Publisher:Oxford University Press

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