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Estimation Of Firm-Varying, Input-Specific Efficiencies In Dairy Production

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  • Lass, Daniel A.
  • Gempesaw, Conrado M., II

Abstract

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.

Suggested Citation

  • Lass, Daniel A. & Gempesaw, Conrado M., II, 1992. "Estimation Of Firm-Varying, Input-Specific Efficiencies In Dairy Production," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 21(2), pages 1-9, October.
    • Handle: RePEc:ags:nejare:29006
    DOI: 10.22004/ag.econ.29006
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    References listed on IDEAS

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    1. Gempesaw, Conrado M., II, 1992. "Nonparametric Analysis Of Production Efficiency: Discussion," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 21(1), pages 1-4, October.

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