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Management bias and returns to scale in a Cobb-Douglas production function for agriculture

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  • P.J. DAWSON
  • J. LINGARD

Abstract

The purpose of this paper is to reconsider the specification and estimation of agricultural production functions. By assuming a criterion of expected profit maximization and incorporating a management input into the function using dummy variables, least squares estimates of the parameters of the production function are unbiased and consistent. Functions are estimated for four years of annual Farm Management Survey data for the North-West of England. Results presented reveal both reduced marginal productivity estimates and returns-to-scale compared with conventional cross-section estimates.

Suggested Citation

  • P.J. Dawson & J. Lingard, 1982. "Management bias and returns to scale in a Cobb-Douglas production function for agriculture," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 9(1), pages 7-24.
  • Handle: RePEc:oup:erevae:v:9:y:1982:i:1:p:7-24.
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    File URL: http://hdl.handle.net/10.1093/erae/9.1.7
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    Cited by:

    1. B. E. Bravo‐Ureta & L. Rieger, 1990. "Alternative Production Frontier Methodologies And Dairy Farm Efficiency," Journal of Agricultural Economics, Wiley Blackwell, vol. 41(2), pages 215-226, May.
    2. Abdul Wadud, 2013. "Impact of Microcredit on Agricultural Farm Performance and Food Security in Bangladesh," Working Papers 14, Institute of Microfinance (InM).
    3. Ahmad, Munir & Boris E., Bravo-Ureta, 1996. "Technical efficiency measures for dairy farms using panel data: a comparison of alternative model specifications," MPRA Paper 37703, University Library of Munich, Germany.
    4. Tsakiridis, Andreas & Mateo-Mantecón, Ingrid & O'Connor, Eamonn & Hynes, Stephen & O'Donoghue, Cathal, 2021. "Efficiency benchmarking of Irish and North Atlantic Spanish ports: Implications for blue growth," Utilities Policy, Elsevier, vol. 72(C).
    5. Bailey, A. & Williams, N. & Palmer, M. & Geering, R., 2000. "The farmer as service provider: the demand for agricultural commodities and equine services," Agricultural Systems, Elsevier, vol. 66(3), pages 191-204, December.
    6. Alaouze, Chris M., 1988. "The Probability Distribution Of The Average Marginal Products Of Cobb-Douglas Factors With Applications," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 32(2-3), pages 1-9, August.
    7. Danilo Đokić & Bojan Matkovski & Marija Jeremić & Ivan Đurić, 2022. "Land Productivity and Agri-Environmental Indicators: A Case Study of Western Balkans," Land, MDPI, vol. 11(12), pages 1-13, December.
    8. Bravo-Ureta, Boris E. & Njuki, Eric & Palacios, Ana Claudia & Salazar, Lina, 2022. "Agricultural Productivity in El Salvador: A Preliminary Analysis," IDB Publications (Working Papers) 11984, Inter-American Development Bank.
    9. Ajetomobi, Joshua Olusegun, 2016. "Sensitivity of Crop Yield to Extreme Weather in Nigeria," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246919, African Association of Agricultural Economists (AAAE).
    10. Bravo-Ureta, Boris E. & Rieger, Laszlo & Quiroga, Ricardo E., 1990. "Fixed Effects and Stochastic Frontier Estimates of Firm-Level Technical Efficiency," 1990 Annual meeting, August 5-8, Vancouver, Canada 270867, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Siebert, W. Stanley & Zubanov, Nick & Chevalier, Arnaud & Viitanen, Tarja, 2006. "Labour Turnover and Labour Productivity in a Retail Organization," IZA Discussion Papers 2322, Institute of Labor Economics (IZA).
    12. Friedrich Schneider & Klaus Salhofer & Erwin Schmid & Gerhard Streicher, 2001. "Was the Austrian agricultural policy least cost efficient?," Economics working papers 2001-03, Department of Economics, Johannes Kepler University Linz, Austria.
    13. Đokić, Danilo & Matkovski, Bojan & Jeremić, Marija & Đurić, Ivan, 2022. "Land productivity and agri-environmental indicators: A case study of Western Balkans," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 11(12), pages 1-13.
    14. Alaouze, Chris M. & Read, Michael & Sturgess, Neil H., 1985. "A Statistical Analysis Of A Pilot Survey Of Salt-Affected Dairy Farms," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 29(1), pages 1-14, April.

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