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Production Response in the Interior of the Production Set

In: Productivity and Efficiency Analysis

Author

Listed:
  • Loren W. Tauer

    (Cornell University)

Abstract

Quantile regression is used to estimate production functions at various quantiles within a dairy farm production set, and marginal products and input substitutions are derived for each of the quantile production functions. Economic relationships vary in the interior of the production set compared to the frontier of the production set, with no discernible pattern through the production set. Implication is that production response for inefficient firms in the interior of the production set may differ compared to efficient firms on the frontier of the production set as well as other inefficiency firms. The results are for a specific dairy production data set so further analysis is warranted to determine what patterns exist with other empirical production sets.

Suggested Citation

  • Loren W. Tauer, 2016. "Production Response in the Interior of the Production Set," Springer Proceedings in Business and Economics, in: William H. Greene & Lynda Khalaf & Robin Sickles & Michael Veall & Marcel-Cristian Voia (ed.), Productivity and Efficiency Analysis, edition 1, chapter 0, pages 71-82, Springer.
    • Handle: RePEc:spr:prbchp:978-3-319-23228-7_4
    DOI: 10.1007/978-3-319-23228-7_4
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    Cited by:

    1. Juan Cabas Monje & Bouali Guesmi & Amer Ait Sidhoum & José María Gil, 2023. "Measuring technical efficiency of Spanish pig farming: Quantile stochastic frontier approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 67(4), pages 688-703, October.
    2. Schorr, A. & Lips, M., 2018. "Influence of milk yield on profitability a quantile regression analysis," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277000, International Association of Agricultural Economists.
    3. Cartone, Alfredo & Postiglione, Paolo & Hewings, Geoffrey J.D., 2021. "Does economic convergence hold? A spatial quantile analysis on European regions," Economic Modelling, Elsevier, vol. 95(C), pages 408-417.

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