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Production structure and derived demand for factor inputs in smallholder dairying in Kenya AgEcon
Kavoi, Mutuku Muendo; Hoag, Dana L.; Pritchett, James G..
This study examined the production structure of smallholder dairy farms in Kenya’s marginal zones, using duality theory in production and costs. The restricted translog cost function was used to derive a system of six input share equations, which were estimated simultaneously with the cost equation by the iterative Zellner procedure. The Morishima elasticities of inputs and the price elasticities of factor demands were computed, and economies of scale were determined. The results indicated that the production structure is a fairly well integrated system of activities, despite scale diseconomies. The Morishima elasticities indicated that factor inputs are substitutable. For example, as prices of formal feeds remain relatively high, informal feeds may be...
Tipo: Journal Article Palavras-chave: Production structure; Translog cost function; Marginal zones; Elasticities; Scale economies; Livestock Production/Industries.
Ano: 2009 URL: http://purl.umn.edu/56916
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Economic performance of exotic dairy cattle under smallholder conditions in the marginal zones of Kenya using three analytical approaches AgEcon
Kavoi, Mutuku Muendo; Hoag, Dana L.; Pritchett, James G..
Smallholder exotic dairy cattle have been adopted in the dry marginal zones of Kenya from the high potential areas over the last two decades contrary to the opinion of experts. The objective of this study therefore was to evaluate the economic performance of this dairy establishment in the marginal zones. Three approaches were used for the evaluation: the stochastic cost frontier to determine inefficiencies and the causative institutional and socio-economic factors; cost-factor demand systems; and the supply response analyses to determine the elasticity estimates of policy variables. The results from these approaches are supplementary and seem to support the need for government interventions in institutional and socio-economic factors that have a high...
Tipo: Journal Article Palavras-chave: Marginal zones; Stochastic frontier; Systems analysis; Institutional and socio-economic factors; Institutional and Behavioral Economics.
Ano: 2010 URL: http://purl.umn.edu/61997
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