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Efficiency And Economic Performance: An Application Of The Mimic Model

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  • Richards, Timothy J.
  • Jeffrey, Scott R.

Abstract

Using measures of allocative, technical, and overall efficiency as indicators of a latent "performance" variable, and a set of farm operating ratios as indicators of the amount of effort to improve the quality of feeding, breeding, and labor productivity, we employ a multiple-indicator, multiple-cause (MIMIC) model of Alberta dairy production to determine the factors that contribute to economic performance. Gains in performance may be made through increased milk yield, herd size, breeding program quality, and labor quality, but not by operator experience or increased expenditures on feeding programs. Consequently, the industry trend toward larger dairy herds may indeed improve the economic performance of dairy operators.

Suggested Citation

  • Richards, Timothy J. & Jeffrey, Scott R., 2000. "Efficiency And Economic Performance: An Application Of The Mimic Model," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(1), pages 1-20, July.
    • Handle: RePEc:ags:jlaare:30826
    DOI: 10.22004/ag.econ.30826
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    Cited by:

    1. Alphonse Singbo & Bruno Larue, 2016. "Scale Economies, Technical Efficiency, and the Sources of Total Factor Productivity Growth of Quebec Dairy Farms," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 64(2), pages 339-363, June.
    2. Jianjun Tang & Henk Folmer, 2016. "Latent vs. Observed Variables: Analysis of Irrigation Water Efficiency Using SEM and SUR," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(1), pages 173-185, February.
    3. Tanu Gupta & A. Ganesh Kumar, 2020. "Structural equation approach to modelling social norms in female education: A Case study of India," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2020-32, Indira Gandhi Institute of Development Research, Mumbai, India.

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