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

Bernhard Brümmer · Thomas Glauben · Geert Jan Thijssen

233 citations0/0 files storedAmerican Journal of Agricultural Economics

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Efficiency Analysis Using DEA Agricultural economics and policies Agricultural Economics and Policy

Abstract

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.

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References

1957The Measurement of Productive Efficiency 2021Econometric Analysis of Panel Data 1995A model for technical inefficiency effects in a stochastic frontier production function for panel data 2000Stochastic Frontier Analysis 2016Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries 1982The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity 2015Theory of Cost and Production Functions 1959Theory of Value

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