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A Comparison of Production Technology Using Primal and Dual Approaches: The Case of Dutch Dairy Farms

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  • Thijssen, Geert

Abstract

Two models of profit-maximizing farms are developed using the duality that exists between the normalized profit function and the production function. Some production factors are fixed in the short term. The specification used is the translog form with variable intercepts. The equations are estimated with an incomplete panel using a SUR and 3SLS estimation method. The theoretical framework fits the data well. Assumptions often made about the production technology are tested. Linear homogeneity and Hicks' neutrality are rejected by both models. The production and substitution elasticities calculated by both models do not differ significantly. Therefore, using data from dairy farms in the Netherlands the dual models perform similarly. Copyright 1992 by Oxford University Press.

Suggested Citation

  • Thijssen, Geert, 1992. "A Comparison of Production Technology Using Primal and Dual Approaches: The Case of Dutch Dairy Farms," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 19(1), pages 49-65.
    • Handle: RePEc:oup:erevae:v:19:y:1992:i:1:p:49-65
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    Cited by:

    1. Tzouvelekas, Evaggelos, 2000. "Approximation Properties and Estimation of the Translog Production Function with Panel Data," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 1(1), pages 1-16, January.
    2. Alfons Oude Lansink & Geert Thijssen, 1998. "Testing among functional forms: an extension of the Generalized Box-Cox formulation," Applied Economics, Taylor & Francis Journals, vol. 30(8), pages 1001-1010.
    3. Bernhard Brümmer & Jens‐Peter Loy, 2000. "The Technical Efficiency Impact of Farm Credit Programmes: A Case Study of Northern Germany," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(3), pages 405-418, September.
    4. Saldias, Rodrigo & von Cramon-Taubadel, Stephan, 2012. "Access to credit and the determinants of technical inefficiency among specialized small farmers in Chile," DARE Discussion Papers 1211, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).

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