This is a chapter in a book entitled "Agricultural Investment and Productivity: Building Sustainability in East Africa" edited by Gunnar Köhlin and Randall Bluffstone, 2011.
This chapter aims to contribute to the literature on soil and water conservation (SWC) by decomposing productivity into technology and technical efficiency (TE) effects. A firm is said to be technically inefficient if it produces less output from a given input bundle than the maximum output that can be attained from the input bundle at the current level of technology.