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Australian Agricultural and Resource Economics Society >
2007 Conference (51st), February 13-16, 2007, Queenstown, New Zealand >
Please use this identifier to cite or link to this item:
http://purl.umn.edu/10392
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| Title: | Efficiency and technical change in the Western Australian wheatbelt |
| Authors: | Cattle, Nathan
White, Benedict |
| Keywords: | stochastic frontier
agriculture
farm size
scale economies
technical efficiency |
| Issue Date: | 2007 |
| Series/Report no.: | Conference Paper |
| Abstract: | The production performance of wheatbelt farms in Western Australia is analysed to determine
whether potential to exploit scale economies and improve technical efficiency has driven the
trend towards increased farm size. An input-orientated stochastic frontier model is used to
estimate technical efficiency and scale economies using an unbalanced panel dataset
provided by BankWest for the period 1995/1996 to 2005/2006. Differences in the relative
efficiency of farms are explored by the simultaneous estimation of a model of inefficiency
effects. The results show the majority of wheatbelt farms operate at high levels of technical
efficiency and experience increasing returns to scale. Over the study period farms became
bigger to benefit from economies of scale, however average farm technical efficiency
declined. More specialised farms on average are more technically efficient and have less
potential to exploit scale economies. Technical efficiency and scale economies are
significantly affected by farm location. The farmer/farm family characteristics do not
significantly affect technical efficiency although attending an agricultural college and having
a child with a strong interest to return to the farm has a positive effect on scale economies. |
| URI: | http://purl.umn.edu/10392 |
| Institution/Association: | Australian Agricultural and Resource Economics Society - 2007>2007 Conference (51st), February 13-16, 2007, Queenstown, New Zealand |
| Total Pages: | 37 |
| Language: | English |
| Collections: | 2007 Conference (51st), February 13-16, 2007, Queenstown, New Zealand
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| cp07ca03.pdf | 869Kb | PDF | View/Open |
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