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An Intermediate Input Model Of Dairy Production Using Complex Survey Data

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  • Rolf Färe
  • Gerald Whittaker

Abstract

Agricultural production is often characterised by multiple inputs and multiple outputs to multiple production processes. Where an output from one process is used as an input to another, this output is called an intermediate product. This is a common situation when a farm produces both crops and livestock. The analysis of production efficiency is important for the evaluation of agricultural policy, but until recently, no methods have explicitly included intermediate products. This study applies a non‐parametric technique of efficiency measurement which includes intermediate products. The data set is a sample of dairy farms drawn using a complex survey design. The use of non‐parametric efficiency measurement and the subsequent application of bootstrapping and kernel density estimation to the results allow inferences to be drawn concerning the whole population from which the sample was drawn. We find that the decomposition of production into subproduction processes reduces the dimensions of problem specification, with the effect that a larger number of variables may be usefully included in the model.

Suggested Citation

  • Rolf Färe & Gerald Whittaker, 1995. "An Intermediate Input Model Of Dairy Production Using Complex Survey Data," Journal of Agricultural Economics, Wiley Blackwell, vol. 46(2), pages 201-213, May.
  • Handle: RePEc:bla:jageco:v:46:y:1995:i:2:p:201-213
    DOI: 10.1111/j.1477-9552.1995.tb00766.x
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    File URL: https://doi.org/10.1111/j.1477-9552.1995.tb00766.x
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    References listed on IDEAS

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    1. Bravo-Ureta, Boris E., 1983. "Non-Parametric Measures of Technical Efficiency in Milk Production," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 0(Number 2), pages 1-8.
    2. Alfons Weersink & Calum G. Turvey & Abdulahi Godah, 1990. "Decomposition Measures of Technical Efficiency for Ontario Dairy Farms," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 38(4), pages 1023-1023, December.
    3. Bravo-Ureta, Boris E., 1983. "Non-Parametric Measures of Technical Efficiency in Milk Production," Journal of the Northeastern Agricultural Economics Council, Northeastern Agricultural and Resource Economics Association, vol. 12(2), pages 1-8.
    4. Alfons Weersink & Calum G. Turvey & Abdulahi Godah, 1990. "Decomposition Measures of Technical Efficiency for Ontario Dairy Farms," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 38(4), pages 1023-1023, December.
    5. Grisley, William & Mascarenhas, Juan, . "Operating Cost Efficiency On Pennsylvania Dairy Farms," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 14(1), pages 1-8.
    6. Jackson, Scott H., 1991. "Relationships between normalized leaf water potential and crop water stress index values for acala cotton," Agricultural Water Management, Elsevier, vol. 20(2), pages 109-118, November.
    7. Tauer, Loren W. & Hanchar, John J., 1993. "Nonparametric Technical Efficiency with N Firms and M Inputs: A Simulation," Staff Papers 121333, Cornell University, Department of Applied Economics and Management.
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