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Detecting Technological Heterogeneity in New York Dairy Farms

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  • del Corral, Julio
  • Alvarez, Antonio
  • Tauer, Loren W.

Abstract

Agricultural studies have often differentiated and estimated different technologies within a sample of farms. The common approach is to use observable farm characteristics to split the sample into several groups and subsequently estimate different functions for each group. Alternatively, unique technologies can be determined by econometric procedures such as latent class models. This paper compares the results of a latent class model with the use of a priori information to split the sample using dairy farm data in the application. Latent class separation appears to be a superior method of separating heterogeneous technologies.

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Bibliographic Info

Paper provided by Agricultural and Applied Economics Association in its series 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin with number 49293.

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Date of creation: 29 Apr 2009
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Handle: RePEc:ags:aaea09:49293

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Keywords: parlor milking system; stanchion milking system; latent class model; stochastic frontier; Production Economics;

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  1. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
  2. Carol Newman & Alan Matthews, 2006. "The productivity performance of Irish dairy farms 1984–2000: a multiple output distance function approach," Journal of Productivity Analysis, Springer, vol. 26(2), pages 191-205, October.
  3. Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 233-238, August.
  4. Nobuhiko Fuwa & Christopher Edmonds & Pabitra Banik, 2007. "Are small-scale rice farmers in eastern India really inefficient? Examining the effects of microtopography on technical efficiency estimates," Agricultural Economics, International Association of Agricultural Economists, vol. 36(3), pages 335-346, 05.
  5. Kompas, Tom & Che, Tuong Nhu, 2006. "Technology choice and efficiency on Australian dairy farms," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(1), March.
  6. Ahmad, Munir & Boris E., Bravo-Ureta, 1995. "An econometric decomposition of dairy output growth," MPRA Paper 37678, University Library of Munich, Germany.
  7. Kelvin Balcombe & Iain Fraser & Mizanur Rahman & Laurence Smith, 2007. "Examining the technical efficiency of rice producers in Bangladesh," Journal of International Development, John Wiley & Sons, Ltd., vol. 19(1), pages 1-16.
  8. Tauer, Loren W., 1993. "Short-Run And Long-Run Efficiencies Of New York Dairy Farms," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 22(1), April.
  9. Greene, William, 2005. "Reconsidering heterogeneity in panel data estimators of the stochastic frontier model," Journal of Econometrics, Elsevier, vol. 126(2), pages 269-303, June.
  10. Luis Orea & Subal C. Kumbhakar, 2004. "Efficiency measurement using a latent class stochastic frontier model," Empirical Economics, Springer, vol. 29(1), pages 169-183, January.
  11. Tom Kompas & Tuong Nhu Che, 2006. "Technology choice and efficiency on Australian dairy farms ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(1), pages 65-83, 03.
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Cited by:
  1. Sauer, Johannes & Davidova, Sophia & Gorton, Matthew, 2012. "Land Fragmentation and Market Integration - Heterogeneous Technologies in Kosovo," 52nd Annual Conference, Stuttgart, Germany, September 26-28, 2012 137385, German Association of Agricultural Economists (GEWISOLA).
  2. Sauer, Johannes & Davidova, Sophia & Gorton, Matthew, 2012. "Heterogeneous Technologies as an Answer to Market and Price Risk: The Case of Kosovo," 123rd Seminar, February 23-24, 2012, Dublin, Ireland 122509, European Association of Agricultural Economists.
  3. Massimo Filippini & Martin Koller & Urs Trinkner, 2010. "Do opening hours and unobserved heterogeneity affect economies of scale and scope in postal outlets?," Quaderni della facoltà di Scienze economiche dell'Università di Lugano 1007, USI Università della Svizzera italiana.
  4. Sauer, Johannes & Davidova, Sophia & Gorton, Matthew, 2012. "Land Fragmentation, Market Integration and Farm Efficiency: Empirical Evidence from Kosovo," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 123236, Agricultural and Applied Economics Association.
  5. Morrison Paul, Catherine J. & Sauer, Johannes, 2010. "Technologies And Localized Technical Change," 50st Annual Conference, Braunschweig, Germany, September 29-October 1, 2010 93963, German Association of Agricultural Economists (GEWISOLA).

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