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Multi-output Technical Efficiency for Argentinean Dairy Farms Using Stochastic Production and Stochastic Distance Frontiers with Unbalanced Panel Data

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  • Moreira Lopez, Victor H.
  • Bravo-Ureta, Boris E.
  • Arzubi, Amilcar
  • Schilder, Ernesto

Abstract

This paper uses stochastic production frontiers (SPF) and stochastic distance frontiers (SDF) to measure technical efficiency for a sample of dairy farms in Abasto Sur, Argentina. The data is a highly unbalanced panel including 46 farmers from 1997/98 to 2001/02 with a total of 82 observations. Four alternative models based on the Battese and Coelli framework are evaluated. Average technical efficiency across the four models ranges from 67.2% to 88.4% while the correlation coefficient for technical efficiency scores ranges from 0.632 to 0.976. There is significant technological regress, with an annual average of 16.8% and 17.7% for the two “best” models. The results indicate that alternative specifications can have a significant impact on the results, specifically on mean efficiency figures.

Suggested Citation

  • Moreira Lopez, Victor H. & Bravo-Ureta, Boris E. & Arzubi, Amilcar & Schilder, Ernesto, 2006. "Multi-output Technical Efficiency for Argentinean Dairy Farms Using Stochastic Production and Stochastic Distance Frontiers with Unbalanced Panel Data," Economi­a Agraria (Revista Economia Agraria), Agrarian Economist Association (AEA), Chile, vol. 10, pages 1-10.
    • Handle: RePEc:ags:eaaeac:97360
    DOI: 10.22004/ag.econ.97360
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    References listed on IDEAS

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    1. Boris E. Bravo-Ureta & Laszlo Rieger, 1991. "Dairy Farm Efficiency Measurement Using Stochastic Frontiers and Neoclassical Duality," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(2), pages 421-428.
    2. B. E. Bravo‐Ureta & L. Rieger, 1990. "Alternative Production Frontier Methodologies And Dairy Farm Efficiency," Journal of Agricultural Economics, Wiley Blackwell, vol. 41(2), pages 215-226, May.
    3. Boris E. Bravo-Ureta, 1986. "Technical Efficiency Measures for Dairy Farms Based on a Probabilistic Frontler Function Model," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 34(3), pages 399-415, November.
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    Cited by:

    1. Karanja, Francis & Gilmour, Daniel & Fraser, Iain, 2012. "Dairy productivity growth, efficiency change and technological progress in Victoria," 2012 Conference (56th), February 7-10, 2012, Fremantle, Australia 125053, Australian Agricultural and Resource Economics Society.
    2. Yuhang Bai & Kuixing Han & Lichun Xiong & Yifei Li & Rundong Liao & Fengting Wang, 2022. "Differences and Factors of Raw Milk Productivity between China and the United States," Agriculture, MDPI, vol. 12(11), pages 1-13, November.

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