Hostname: page-component-7bb8b95d7b-s9k8s Total loading time: 0 Render date: 2024-09-15T14:52:34.262Z Has data issue: false hasContentIssue false

Non-Parametric Measures of Technical Efficiency in Milk Production

Published online by Cambridge University Press:  10 May 2017

Boris E. Bravo-Ureta*
Affiliation:
Agricultural Economics at the University of Connecticut, Storrs, CT 06268
Get access

Abstract

This paper presents estimates of technical efficiency in milk production based on Farrell's non-parametric frontier production function methodology. Data from a sample of Maine and Vermont dairy farms, included in the ELFAC business analysis for 1979, were used to derive Efficient Unit Isoquants for capital-labor and concentrate feed-roughage combinations. The analysis indicates that milk production in Maine and Vermont farms was characterized by significant technical inefficiencies during 1979.

Type
Contributed Papers
Copyright
Copyright © Northeastern Agricultural and Resource Economics Association 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

The author gratefully acknowledges review comments of T. C. Lee and Stan Seaver, and the assistance of Hugo Fueglein.

Scientific Contribution No. 1028, Storrs Agricultural Experiment Station, The University of Connecticut, Storrs, CT 06268.

References

Aigner, D.J., and Chu, S.On Estimating the Industry Production Function.” Amer. Econ. Rev. 58 (1968): 826–39.Google Scholar
Aigner, D.J., Lovell, C.K., and Schmidt, P.Formulation and Estimation of Stochastic Frontier Production Function Models.” J. of Econometrics 6 (1977): 2137.Google Scholar
Bagi, F.S.Relationship Between Farm Size and Technical Efficiency in West Tennessee Agriculture.” S. J. Agr. Econ. 14 (1982): 139144.Google Scholar
Boles, J.Efficiency Squared-Efficient Computation of Efficiency Indexes.” Western Farm Econ. Assoc. Proceedings 39 (1966): 137142.Google Scholar
Buxton, B., and Jensen, H. Economies of Size in Minnesota Dairy Farming. University of Minnesota Agr. Exp. Sta. Bull. No. 488, 1968.Google Scholar
Carlson, D. Calculating Frontier Multi-Product, Multi-Factor Production and Cost Relationships – A Computerized Algorithm. University of California, Davis, Dept. of Agr. Econ., October 1976.Google Scholar
Domar, Ε.On Total Productivity and All That.” J. Political Econ. 70 (1962): 597608.Google Scholar
Farrell, M.The Measurement of Productive Efficiency.” J. Royal Statis. Soc. A 120 (1957): 253290.Google Scholar
Farrell, M., and Fieldhouse, M.Estimating Efficient Production Functions Under Increasing Returns to Scale.” J. Royal Statis. Soc. A 125 (1962): 252–67.Google Scholar
Førsund, F., Lovell, C.K., and Schmidt, P.A Survey of Frontier Production Functions and of Their Relationship to Efficiency Measurement.” J. of Econometrics 13 (1980): 525.Google Scholar
Hall, B.F., and LaVeen, E.P.Farm Size and Economic Efficiency: The Case of California.” Amer. J. Agr. Econ. 60 (1978): 589600.Google Scholar
Heady, E.O.Elementary Models in Farm Production Economics.” J. Farm Econ. 30 (1948): 201225Google Scholar
King, R.A.The Frontier Production Function: A Tool for Improved Decision Making.” J. NE Agr. Econ. Council 9 (1980): 110.Google Scholar
Lau, L.J., and Yotopoulos, P.A.A Test for Relative Efficiency and Application to Indian Agriculture.” Amer. Econ. Rev. 61 (1971): 94109.Google Scholar
Lesser, W., and Greene, W.Economies of Size and Operating Efficiency of Livestock Markets: A Frontier Function Approach.” J. NE Agr. Econ. Council 9 (1980): 3740.Google Scholar
Madden, J. Economies of Size in Farming. USDA ERS agr. Econ. Rep. No. 107, February 1967.Google Scholar
Miller, T.A., Roderwalk, G.E. and McElroy, R.E. Economies of Size in U.S. Field Crop Farming. USDA ESS Agr. Econ. Rep. No. 472, July 1981.Google Scholar
Schmidt, P.On the Statistical Estimation of Parametric Frontier Production Functions.” Rev. of Econ. and Stats. 58 (1970): 238239.Google Scholar
Timmer, C.On Measuring Technical Efficiency.” Food Res. Inst. Studies in Agr. Econ., Trade, and Development 9 (1970): 98171Google Scholar
Timmer, C.Using a Probabilistic Frontier Production Function to Measure Technical Efficiency.” J. Political Econ. 79 (1971): 776794.Google Scholar