This paper contributes to the productivity literature in developing country agriculture by
quantifying the level of efficiency for a sample of peasant farmers from Eastern Paraguay. A
stochastic efficiency decomposition methodology is used to derive technical, allocative and
economic efficiency measures separately for cotton and cassava. An average economic
efficiency of 40.1% for cotton and of 52.× for cassava is found, which suggests considerable
room for productivity gains for the farms in the sample through better use of available …