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The Relationship Between Technical Efficiency and Farm Size

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  • Álvarez, Antonio
  • Arias, Carlos

Abstract

This paper analyzes the relationship between technical efficiency and size in the framework provided by a production model. Technical efficiency is introduced in the model as a parameter, as a result of which it affects both the input demand and output supply of a profit maximizing producer. This framework allows us to study the theoretical relationship between technical efficiency and size. An empirical application explores this relationship using panel data of dairy farms in Spain.

Suggested Citation

  • Álvarez, Antonio & Arias, Carlos, 2001. "The Relationship Between Technical Efficiency and Farm Size," Efficiency Series Papers 2001/05, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    • Handle: RePEc:oeg:wpaper:2001/05
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    File URL: https://www.unioviedo.es/oeg/ESP/esp_2001_05.pdf
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    References listed on IDEAS

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    Cited by:

    1. González, Eduardo & Cárcaba, Ana, 2001. "A Resource-Based Interpretation of Technical Efficiency Indexes," Efficiency Series Papers 2001/03, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    2. Iraizoz, Belen & Rapun, Manuel & Zabaleta, Idoia, 2003. "Assessing the technical efficiency of horticultural production in Navarra, Spain," Agricultural Systems, Elsevier, vol. 78(3), pages 387-403, December.

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