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Resource Use Efficiency Of Dutch Dairy Farms; A Parametric Distance Function Approach

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  • Reinhard, Stijn
  • Thijssen, Geert

Abstract

An output distance function is estimated using a panel of Dutch dairy farms. Nitrogen surplus is treated as a bad output. In contrast to assumptions made in the literature the good and the bad output turn out to be negatively related. Using this result, we define and calculate sustainable efficiency.

Suggested Citation

  • Reinhard, Stijn & Thijssen, Geert, 1998. "Resource Use Efficiency Of Dutch Dairy Farms; A Parametric Distance Function Approach," 1998 Annual meeting, August 2-5, Salt Lake City, UT 21022, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea98:21022
    DOI: 10.22004/ag.econ.21022
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    File URL: https://ageconsearch.umn.edu/record/21022/files/sprein01.pdf
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    References listed on IDEAS

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    1. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "Multilateral Comparisons of Output, Input, and Productivity Using Superlative Index Numbers," Economic Journal, Royal Economic Society, vol. 92(365), pages 73-86, March.
    2. Coggins, Jay S. & Swinton, John R., 1996. "The Price of Pollution: A Dual Approach to Valuing SO2Allowances," Journal of Environmental Economics and Management, Elsevier, vol. 30(1), pages 58-72, January.
    3. Fare, Rolf, et al, 1989. "Multilateral Productivity Comparisons When Some Outputs Are Undesirable: A Nonparametric Approach," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 90-98, February.
    4. V.E. Ball & C.A K. Lovell & R.F. Nehring & A. Somwaru, 1994. "Incorporating indesirable outputs into models of production: an application to US agriculture," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 31, pages 59-74.
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    Cited by:

    1. O'Donnell, Christopher J. & Coelli, Timothy J., 2005. "A Bayesian approach to imposing curvature on distance functions," Journal of Econometrics, Elsevier, vol. 126(2), pages 493-523, June.
    2. Atkinson, Scott E. & Dorfman, Jeffrey H., 2005. "Bayesian measurement of productivity and efficiency in the presence of undesirable outputs: crediting electric utilities for reducing air pollution," Journal of Econometrics, Elsevier, vol. 126(2), pages 445-468, June.
    3. Michaelides, Panayotis G. & Vouldis, Angelos T. & Tsionas, Efthymios G., 2010. "Globally flexible functional forms: The neural distance function," European Journal of Operational Research, Elsevier, vol. 206(2), pages 456-469, October.
    4. Michaelides, Panayotis G. & Tsionas, Efthymios G. & Vouldis, Angelos T. & Konstantakis, Konstantinos N., 2015. "Global approximation to arbitrary cost functions: A Bayesian approach with application to US banking," European Journal of Operational Research, Elsevier, vol. 241(1), pages 148-160.

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    Keywords

    Livestock Production/Industries;

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