Short-Run Returns to Scale, Farm-Size, and Economic Efficiency

Subal C. Kumbhakar

53 citations0/0 files storedThe Review of Economics and Statistics

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Agricultural economics and policies Livestock Farming and Management Efficiency Analysis Using DEA

Abstract

This paper analyzes the effects of returns to scale, farm-size, technical, allocative, and scale inefficiencies on the profitability of Utah dairy farms. It derives the conditions necessary to compare the profitability of farms within and between different size classifications as small, medium, and large. Some comparative static results regarding increases in input prices and a decrease or withdrawal of price support on profitability of small, medium, and large farms are presented. Copyright 1993 by MIT Press.

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References

1980A survey of frontier production functions and of their relationship to efficiency measurement 1979Generalised Farrell Measures of Efficiency: An Application to Milk Processing in Swedish Dairy Plants 1982Prices, Technology, and Farm Size 1989A Study of Economic Efficiency of Utah Dairy Farmers: A System Approach 1980Estimating stochastic production and cost frontiers when technical and allocative inefficiency are correlated 1987An Econometric Analysis of the Effects of Human Capital on Size and Growth among Dairy Farms

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