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Frontier Production Functions and Technical Progress: A Study of General Milk Processing in Swedish Dairy Plants

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  • Forsund, Finn R
  • Hjalmarsson, Lennart

Abstract

Technical change in general milk processing is estimated within a homothetic frontier production function allowing neutrally variable scale elasticity. The results show that technical progress is characterized by a rapid increase in optimal scale and a small capital saving bias, increasing the marginal productivity of labour relative to capital. To characterize technical change, Salter's measures of bias and technical advance are utilized and interpreted within the framework of the efficiency cancepts of Farrell.
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Suggested Citation

  • Forsund, Finn R & Hjalmarsson, Lennart, 1979. "Frontier Production Functions and Technical Progress: A Study of General Milk Processing in Swedish Dairy Plants," Econometrica, Econometric Society, vol. 47(4), pages 883-900, July.
    • Handle: RePEc:ecm:emetrp:v:47:y:1979:i:4:p:883-900
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    Cited by:

    1. F R Førsund & L Hjalmarsson, 2004. "Calculating scale elasticity in DEA models," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 55(10), pages 1023-1038, October.
    2. Yu, Chunyan, 1998. "The effects of exogenous variables in efficiency measurement--A monte carlo study," European Journal of Operational Research, Elsevier, vol. 105(3), pages 569-580, March.
    3. Marcel Simoneau, 1982. "Vers une mesure de la progressivité technologique," L'Actualité Economique, Société Canadienne de Science Economique, vol. 58(3), pages 283-302.
    4. Odeck, James, 2000. "Assessing the relative efficiency and productivity growth of vehicle inspection services: An application of DEA and Malmquist indices," European Journal of Operational Research, Elsevier, vol. 126(3), pages 501-514, November.
    5. Salas, Osvaldo, 1998. "Technical Efficiency During Deregulation of the Urban Bus System in Sweden," Working Papers in Economics 4, University of Gothenburg, Department of Economics.
    6. Gao, Yuning & Cheng, Gengyun & Ma, Yingjun, 2021. "An analysis of the comprehensive efficiency and its determinants of China's National Champions: Competition Neutrality vs. Ownership Neutrality," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 320-329.
    7. Ma, Hengyun & Rae, Allan N. & Huang, Jikun, 2004. "Livestock Productivity In China: Data Revision And Total Factor Productivity Decomposition," China Agriculture Project Working Papers 23691, Massey University, Centre for Applied Economics and Policy Studies.
    8. Dale W. Jorgenson, 1991. "Productivity and Economic Growth," NBER Chapters, in: Fifty Years of Economic Measurement: The Jubilee of the Conference on Research in Income and Wealth, pages 19-118, National Bureau of Economic Research, Inc.
    9. Viveka P. Kudaligama & John F. Yanagida, 2000. "A Comparison of Intercountry Agricultural Production Functions: A Frontier Function Approach," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 25(1), pages 57-74, June.

    More about this item

    JEL classification:

    • O13 - Economic Development, Innovation, 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

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