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Technical Efficiency Measures For New England Dairy Farms Based On A Deterministic Statistical Production Frontier

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  • Bravo-Ureta, Boris E.

Abstract

The purpose of this paper is to measure and explain the technical efficiency (TE) of a sample of New England Dairy Farms. A simple corrected OLS procedure is used to estimate a CobbDouglas production frontier which provides the basis for measuring farm level TE. The average level of TE for the sample is around 70 percent with a low of 48.7 percent and a high of 100 percent. Efforts to explain the variation in TE as a function of socioeconomic variables yielded extremely poor results.

Suggested Citation

  • Bravo-Ureta, Boris E., 1987. "Technical Efficiency Measures For New England Dairy Farms Based On A Deterministic Statistical Production Frontier," 1987 Annual Meeting, August 2-5, East Lansing, Michigan 270101, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea87:270101
    DOI: 10.22004/ag.econ.270101
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    References listed on IDEAS

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    1. Broek, Julien van den & Forsund, Finn R. & Hjalmarsson, Lennart & Meeusen, Wim, 1980. "On the estimation of deterministic and stochastic frontier production functions : A comparison," Journal of Econometrics, Elsevier, vol. 13(1), pages 117-138, May.
    2. Afriat, Sidney N, 1972. "Efficiency Estimation of Production Function," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 13(3), pages 568-598, October.
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