A production function analysis of commercial dairy farms in the Highlands of Eritrea using ridge regression
This study presents a production function analysis of fresh milk production in the Highlands of Eritrea, where most dairy farmers in Eritrea are located. To ensure representative production functions, this region was divided into three relatively homogenous study areas, namely Central Zone, Mendefera and Dekemhare. Most data for the study were collected in a survey of 120 respondents using a structured questionnaire. To obviate the problem of multicollinearity among explainatory variables, ridge regression was used to estimate milk production functions for each study area. Production elasticities of variable inputs, marginal products (MPx), values of marginal products (VMPx), marginal rates of input substitution (MRS) and least-cost combinations of purchased concentrates and forage were estimated for the three regions. The VMPs of all inputs for Central Zone dairy farmer respondents were estimated to be greater than their input prices, implying that the resources were under-utilized from a profit-maximising perspective (i.e. where VMPx = Px). However, respondents in Mendefera and Dekemhare used concentrates in excess of optimum levels (i.e. VMPx
When requesting a correction, please mention this item's handle: RePEc:ags:agreko:31706. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.