In a reexamination of Schultz's "poor but efficient" hypothesis, this research uses a unique panel data set and several complementary empirical approaches to obtain estimates of technical efficiency for 492 traditional rice plots in Cote d'Ivoire. An objective of this thesis is to explore explicitly the effects of exogenous environmental shocks on farmer efficiency. Steep slopes, poor fertility, high pest and weed infestation rates, and irrigation are identified to be positively correlated with traditional estimates of technical efficiency. A new measure of technical efficiency--state-conditional technical efficiency--is developed to recognize the pervasive influence of exogenous shocks on productivity. This state-conditional technical efficiency measure suggests that the farmers of this study are largely managerially efficient, but are commonly exposed to states of nature that adversely affect output and, therefore, conventionally measured technical efficiency. The policy implication of such a finding is that there may be greater returns to research to improve production technologies and the ability to better control the production environment, ultimately improving farmer welfare
