ESTIMATION OF FIRM-VARYING, INPUT-SPECIFIC EFFICIENCIES IN DAIRY PRODUCTION

Firm-varying production technologies were estimated using random coefficients regression methods for a sample of Massachusetts dairy farms. Results were compared to OLS Cobb-Douglas production function estimates. The random coefficients regression model was found to virtually eliminate conventionally measured firm technical inefficiencies by estimating individual firm technologies and ascribing remaining inefficiencies to specific inputs. Input-specific measures of firm inefficiencies showed hired labor, land, and machinery inputs to be used in excess of efficient levels. Livestock supplies were underutilized by all farms. Efficiencies of feed, crop materials, fuels, and utilities varied, although estimated means were closer to optimal levels.


Issue Date:
1992-10
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/29006
Published in:
Northeastern Journal of Agricultural and Resource Economics, Volume 21, Number 2
Page range:
142-150
Total Pages:
9




 Record created 2017-04-01, last modified 2017-08-24

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