Files
Abstract
This paper shows that the output distribution moments can be used to
measure technical efficiency under stochastic production and that the moments
can be ordered according to the derivatives of the utility function for a
broad class of utility functions. Applying the moment-based approach to
California dairy production, it was found that scheduled veterinary services
and management quality both affect technical efficiency, with management
increasing in importance relative to veterinary services as risk aversion
increases. Emergency veterinary services were found not to have a significant
effect on technical efficiency.