Study of allocative efficiency at the farm level in southern Brazil

The study sheds some light on questions of resource allocation and capital formation in the agricultural sector. Specific objectives are: (1) To determine possible differences between production functions of three different types of farms in the region (beef cattle, mechanized wheat farms and "mixed" farms); (2) To determine differences in productivity levels, as measured by the production functions estimates, as a means to appraise resource allocative efficiency; (3) To determine possible effects of the current price policy on the pattern of resource use in the region and the potential for capital formation at the farm level. It is also hoped that the current dynamic move away from beef cattle and toward wheat production in this region can be at least partially evaluated by this analysis.