Generalized Farrell Measures of Efficiency: An Application to Milk Processing in Swedish Dairy Plants
AbstractThis paper is concerned with the measurement of productive efficiency. Farrell's measures of efficiency are generalized to nonhomogeneous production functions. Several new measures of efficiency have been introduced and applied to the Swedish milk processing industry. The empirical analysis is based on a complete set of cross section- time series data for a period of la years of 28 individual plants producing a homogeneous product, pasteurized milk. Industrial structure and structural change are examined by both studying the shape of the efficiency distributions for the individual units and their changes through time. The aggregate performance of the sector is studied by the development of the different measures of structural efficiency.
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Bibliographic InfoPaper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 17.
Length: 28 pages
Date of creation: May 1978
Date of revision:
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Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden
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Agriculture; Technical progress; Production function;
Other versions of this item:
- Forsund, Finn R & Hjalmarsson, Lennart, 1979. "Generalised Farrell Measures of Efficiency: An Application to Milk Processing in Swedish Dairy Plants," Economic Journal, Royal Economic Society, vol. 89(354), pages 294-315, June.
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Zellner, A & Revankar, N S, 1969. "Generalized Production Functions," Review of Economic Studies, Wiley Blackwell, vol. 36(106), pages 241-50, April.
- Sato, Ryuzo, 1970. "The Estimation of Biased Technical Progress and the Production Function," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 11(2), pages 179-208, June.
- Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-44, June.
- Forsund, Finn R & Jansen, Eilev S, 1977. "On Estimating Average and Best Practice Homothetic Production Functions via Cost Functions," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 463-76, June.
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