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Nonparametric and Semiparametric Estimation: An Analysis of Multiproduct Returns to Scale

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  • Giancarlo Moschini

Abstract

The nonparametric and semiparametric regression models based on kernel density estimation are reviewed, and they are applied to the analysis of returns to scale in dairy farms using a multioutput cost function. Semiparametric tests of constant returns to scale and homogeneity of production are developed, and their implementation show that both of these hypotheses are rejected. Kernel estimation of the local degree of multiproduct returns to scale confirms that the sample's dairy farms are characterized by a considerable degree of scale economies.

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  • Giancarlo Moschini, 1990. "Nonparametric and Semiparametric Estimation: An Analysis of Multiproduct Returns to Scale," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(3), pages 589-596.
    • Handle: RePEc:oup:ajagec:v:72:y:1990:i:3:p:589-596.
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    Cited by:

    1. Peterson, Willis L., 1997. "Are Large Farms More Efficient?," Staff Papers 13411, University of Minnesota, Department of Applied Economics.
    2. Paulson, Nicholas D. & Hart, Chad E., 2006. "A Spatial Approach to Addressing Weather Derivative Basis Risk: A Drought Insurance Example," 2006 Annual meeting, July 23-26, Long Beach, CA 21249, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Holt, Matthew T. & Moschini, GianCarlo, 1992. "Alternative Measures Of Risk In Commodity Supply Models: An Analysis Of Sow Farrowing Decisions In The United States," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 17(1), pages 1-12, July.
    4. Kivanda, Lena & Fox, Glenn, 1993. "Falsification and the Practice of Agricultural Production Economists: A Methodological Assessment," Department of Agricultural Economics and Business 258724, University of Guelph.
    5. Baerenklau, Kenneth A. & Nergis, Nermin, 2006. "Controlling Dairy Nitrogen Emissions: A Dynamic Analysis of Herd Adjustment, Ground Water Discharges, and Air Emissions," 2006 Annual meeting, July 23-26, Long Beach, CA 21448, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Robert E. Evenson & Wallace B. Huffman, 1997. "Long-Run Structural and Productivity Change in U.S. Agriculture: Effects of Prices and Policies," Working Papers 773, Economic Growth Center, Yale University.
    7. Gervais Jean-Philippe & Rude James I, 2003. "Some Unintended Consequences of TRQ Liberalization," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 1(1), pages 1-18, May.
    8. Miller, James C. & Coble, Keith H. & Vergara, Oscar, 2003. "Farm Program Payments And Economies Of Scale," 2003 Annual meeting, July 27-30, Montreal, Canada 22231, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Evenson, Robert E. & Huffman, Wallace E., 1997. "Long-Run Structural and Productivity Change in U.S. Agriculture: Effects of Prices and Policies," Center Discussion Papers 28518, Yale University, Economic Growth Center.
    10. Kislev, Yoav & Peterson, Willis L., 1991. "Economies Of Scale In Agriculture: A Reexamination Of The Evidence," Staff Papers 13652, University of Minnesota, Department of Applied Economics.
    11. Livanis, Grigorios T. & Salois, Matthew J. & Moss, Charles B., 2009. "A Nonparametric Kernel Representation of the Agricultural Production Function: Implications for Economic Measures of Technology," 83rd Annual Conference, March 30 - April 1, 2009, Dublin, Ireland 51063, Agricultural Economics Society.

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