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AN ANALYSIS OF TECHNICAL, ALLOCATIVE, AND SCALE INEFFICIENCY: THE CASE OF ECUADORIAN DAIRY FARMS AgEcon
Bailey, DeeVon; Biswas, Basudeb; Kumbhakar, Subal C.; Schulthies, B. Kris.
The economic efficiency of 68 Ecuadorian dairy farms is investigated by estimating technical, allocative, and scale efficiencies for each using stochastic frontier methodology. Empirical results show that technical inefficiency exists for all of these farms – ranging from 11.8% to 12.8%. Large and medium-sized farms are found to be allocatively more efficient than the small farms as a group. Finally, estimates of scale inefficiency show that most of these farms are producing output at a level below the optimum.
Tipo: Journal Article Palavras-chave: Livestock Production/Industries; Productivity Analysis.
Ano: 1989 URL: http://purl.umn.edu/32456
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DETERMINANTS OF PART-TIME FARMING AND ITS EFFECT ON FARM PRODUCTIVITY AND EFFICIENCY AgEcon
Lien, Gudbrand D.; Kumbhakar, Subal C.; Hardaker, J. Brian.
Little attention has been given in the agricultural economics literature to the impact of off-farm work on farm productivity and efficiency. More knowledge about what determines part-time farming and whether farm productivity and efficiency are affected by part-time farming could help policy makers introduce better targeted rural development policies. This paper aims to fill the above-mentioned gaps by first analysing factors that influence the choice of off-farm work; and then examining how off-farm work influences productivity and technical efficiency at the farm level. An unbalanced panel data set from 1991 to 2005 from Norwegian grain farms is used for this purpose. The results show that the likelihood of off-farm work and the share of time allocated...
Tipo: Conference Paper or Presentation Palavras-chave: Off-farm work; Productivity; Efficiency; Unobserved heterogeneity; Panel data; Farm Management.
Ano: 2008 URL: http://purl.umn.edu/6701
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Econometric Analysis of the Effects of Subsidies on Farm Production in Case of Endogenous Input Quantities AgEcon
Henningsen, Arne; Kumbhakar, Subal C.; Lien, Gudbrand D..
The effect of subsidies on farm production has been a major topic in agricultural economics for several decades. We present a new approach for analyzing the effects of different types of coupled and decoupled subsidies on farm production with econometric methods. In contrast to most previous studies, our approach is entirely based on a theoretical microeconomic model, explicitly allows subsidies to have an impact on input use, and takes linkages between the farm and the farm household into account.
Tipo: Conference Paper or Presentation Palavras-chave: Agricultural and Food Policy; Productivity Analysis.
Ano: 2011 URL: http://purl.umn.edu/114548
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Econometric Analysis of the Effects of Subsidies on Farm Production in Case of Endogenous Input Quantities AgEcon
Henningsen, Arne; Kumbhakar, Subal C.; Lien, Gudbrand D..
Replaced with revised version of paper 07/29/09.
Tipo: Conference Paper or Presentation Palavras-chave: Panel data; Subsidies; Household model; Endogeneity; Norwegian grain farming; Agricultural and Food Policy; Consumer/Household Economics; Production Economics.
Ano: 2009 URL: http://purl.umn.edu/49728
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Excess Capital in Agricultural Production AgEcon
Kumbhakar, Subal C.; Guan, Zhengfei; Oude Lansink, Alfons G.J.M..
In this article we propose a theoretical model for analyzing capital requirement in agricultural production and define excess capital thereupon. We develop a two-step method that allows endogenous regressors in the maximum likelihood estimation. The two-step procedure is also capably of recovering the parameters of time invariant variables in fixed effect models. The model and method are applied to a capital requirement study using data from cash crop farms in the Netherlands. Empirical results show that excess capital widely exists on the farm. The implications of excess capital are further demonstrated with a production frontier analysis.
Tipo: Conference Paper or Presentation Palavras-chave: Agricultural production; Capital requirement; Endogeneity; Excess capital; Fixed effect; Maximum likelihood estimation; Stochastic frontier; Production Economics.
Ano: 2007 URL: http://purl.umn.edu/9813
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Measuring productivity differentials – An application to milk production in Nordic countries AgEcon
Sipilainen, Timo; Kuosmanen, Timo; Kumbhakar, Subal C..
The aim of this paper is to analyse the regional productivity differentials on dairy farms in Denmark, Finland and Sweden. Several methods have been suggested for analysing productivity differentials in agriculture between groups of farms or countries. Hayami [5] and Hayami and Ruttan [7] suggested the meta-production function approach. This idea has been further developed by Lau and Yotopoulos [9] and Fulginity and Perrin [13]. Battese and Rao [2] suggested the meta-frontier analysis for these comparisons. One of the advantages of meta-frontiers with respect to metaproduction functions is that they are able to separate technological differences from the differences in technical efficiency. Battese et al. [5] and O’Donnell et al. [16] have extended this...
Tipo: Conference Paper or Presentation Palavras-chave: Productivity; Technical efficiency; Meta-frontier; Productivity Analysis.
Ano: 2008 URL: http://purl.umn.edu/44277
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MODELLING FARMS' PRODUCTION DECISIONS UNDER EXPENDITURE CONSTRAINTS AgEcon
Bokusheva, Raushan; Kumbhakar, Subal C..
Limited budget for the purchase of variable inputs might adversely affect producer's input use decisions and might result in a non-optimal input usage. If expenditure constrains are present and binding, unconstrained profit-maximization is not valid for modelling producers' input use decisions. In this paper we apply the indirect production function approach which describes output maximization subject to a given technology, a set of quasi-fixed inputs and a given budget for the purchase of variable inputs. By employing the indirect production function in the stochastic frontier framework we can estimate producer's output loss due to both expenditure constraints and technical inefficiency. Our estimation results show that most of the study farms were...
Tipo: Conference Paper or Presentation Palavras-chave: Indirect production function; SFA; Expenditure constraints; Technical efficiency; Russian agriculture; Farm Management; Research Methods/ Statistical Methods.
Ano: 2008 URL: http://purl.umn.edu/6641
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Technical efficiency in competing panel data models: A study of Norwegian grain farming AgEcon
Kumbhakar, Subal C.; Lien, Gudbrand D.; Hardaker, J. Brian.
Tipo: Conference Paper or Presentation Palavras-chave: Crop Production/Industries.
Ano: 2011 URL: http://purl.umn.edu/114673
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The effect of environmental cross compliance regulations on Swiss farm productivity AgEcon
Bokusheva, Raushan; Kumbhakar, Subal C.; Lehmann, Bernard.
This paper analyzes the evolution of Swiss farm productivity during the implementation of environmental policy reforms. We employ a production model formulation with technology parameters defined as the functions of subsidies, as well as individual farm characteristics. Our estimates for two groups of farms – milk-producing and crop farms – show that introducing environmental regulations induced serious changes in the production technology and productivity of inputs, especially of land, labor and fertilizer. The overall effect of the subsidies on the production output has been found negative. At the same time, we find that farms do not use their resources optimally, which indicates some deficiencies in structural adjustments, primarily in the land and...
Tipo: Conference Paper or Presentation Palavras-chave: Environmental regulations; Productivity analysis; Swiss agriculture.; Environmental Economics and Policy; Q120; D240.
Ano: 2010 URL: http://purl.umn.edu/91828
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