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Decomposition of Productivity Growth Using Distance Functions: The Case of Dairy Farms in Three European Countries

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  • Bernhard Brümmer
  • Thomas Glauben
  • Geert Thijssen

Abstract

Within an output distance function framework, the Total Factor Productivity growth index is decomposed into four components (technical change, technical and allocative efficiency, and scale component). We estimate stochastic translog output distance functions using panel data from dairy farms over the period 1991–94 for three European countries (Germany, the Netherlands, and Poland). Results indicate that the change in the productivity growth index in Germany (+6%) and Poland (−5%) are mainly dictated by the technical change component. In contrast, the productivity growth index in the Netherlands (+3%) is influenced by allocative efficiency components. Copyright 2002, Oxford University Press.

Suggested Citation

  • Bernhard Brümmer & Thomas Glauben & Geert Thijssen, 2002. "Decomposition of Productivity Growth Using Distance Functions: The Case of Dairy Farms in Three European Countries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(3), pages 628-644.
  • Handle: RePEc:oup:ajagec:v:84:y:2002:i:3:p:628-644
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    File URL: http://hdl.handle.net/10.1111/1467-8276.00324
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