@article{Dalton:20320,
      recid = {20320},
      author = {Dalton, Timothy J.},
      title = {INDIVISIBLE AND SPATIAL COMPONENTS OF DAIRY FIRM  EFFICIENCY},
      address = {2004},
      number = {377-2016-20907},
      series = {Selected Paper},
      pages = {39},
      year = {2004},
      abstract = {This paper contrasts nonparametric data envelopment  analysis (DEA) and free disposal hull (FDH) representations  of dairy technology to determine whether factor  indivisibilities and firm-specific location components  affect economic performance. Location and capital structure  variables, in addition to technology and firm structure,  are used in a second-stage model to explain firm  inefficiency using a Tobit estimator.  Capital structure  and location factors are correlated with firm efficiency in  the DEA models but not the FDH indicating that the FDH  representation may account for these factors in the in the  first-stage efficiency modeling.  Results indicate that  failing to control for firm-specific spatial constraints  and capital divisibilities will bias inefficiency estimates  and overestimate the potential gains to economic policy  designed to improve firm performance.},
      url = {http://ageconsearch.umn.edu/record/20320},
      doi = {https://doi.org/10.22004/ag.econ.20320},
}