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Finite Mixture Estimation Of Size Economies And Cost Frontiers In The Face Of Multiple Production Technologies

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  • Smith, H. Arlen
  • Taylor, C. Robert

Abstract

Finite mixture estimation (FME) is compared to estimated generalized least squares (EGLS) in the estimation of economies of size and production cost frontiers for Alabama dairy farms. FME provides several unique insights into the economic forces behind recent changes in Alabama's dairy industry. FME provides estimation of a stochastic average cost frontier with known statistical properties, which it was not otherwise possible to obtain using available stochastic frontier estimation packages.

Suggested Citation

  • Smith, H. Arlen & Taylor, C. Robert, 1998. "Finite Mixture Estimation Of Size Economies And Cost Frontiers In The Face Of Multiple Production Technologies," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 30(2), pages 1-10, December.
    • Handle: RePEc:ags:joaaec:15556
    DOI: 10.22004/ag.econ.15556
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    References listed on IDEAS

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    Livestock Production/Industries;

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