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Activity Analysis: Bridging the Gap between Production Economics Theory and Practical Farm Management Procedures

Author

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  • Longworth, John W.
  • Menz, Kenneth M.
Abstract
This paper is addressed to the traditional problem of demonstrating the relevance of production theory to management-oriented people. Activity analysis, it is argued, is the most appropriate pedagogic framework within which to commence either a production economics or a farm management course. Production economics theory has not been widely accepted as a useful method for the analysis of practical management problems. The theory has been traditionally presented in terms of continuous functions which assume away the question of technical efficiency. Activity analysis, in its general form, is a more comprehensive approach to the theory of production than the conventional neo-classical production function approach since activity analysis explicitly incorporates technical efficiency considerations. The failure of general agricultural economists to demonstrate appropriately the relevance of production theory has encouraged a sub-discipline of farm management dedicated to real-world management problems in agriculture. The basic procedures developed by the farm management sub-discipline (virtually independent of production theory) and now in common use, have a strong affinity with activity analysis. The traditional gap between production theory and applied farm management can, therefore, be bridged by approaching the theory from the activity analysis viewpoint.

Suggested Citation

  • Longworth, John W. & Menz, Kenneth M., 1980. "Activity Analysis: Bridging the Gap between Production Economics Theory and Practical Farm Management Procedures," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 48(01), pages 1-14, April.
    • Handle: RePEc:ags:remaae:37183
    DOI: 10.22004/ag.econ.37183
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    References listed on IDEAS

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    Cited by:

    1. Herrington, Mark E. & Wegener, Malcolm & Hardner, Craig & Woolcock, Louella L. & Dieters, Mark J., 2012. "Influence of plant traits on production costs and profitability of strawberry in southeast Queensland," Agricultural Systems, Elsevier, vol. 106(1), pages 23-32.
    2. Malcolm, Bill, 1990. "Fifty Years of Farm Management in Australia: Survey and Review," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 58(01), pages 1-32, April.
    3. McCown, R. L., 2002. "Locating agricultural decision support systems in the troubled past and socio-technical complexity of `models for management'," Agricultural Systems, Elsevier, vol. 74(1), pages 11-25, October.
    4. Watson, A.S., 1982. "Marketing Policy in Relation to Agricultural Development," 1982 Conference, August 24-September 2, 1982, Jakarta, Indonesia 182456, International Association of Agricultural Economists.

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