Estimating technical efficiency of Australian dairy farms using alternative frontier methodologies

Fraser, Iain M and Balcombe, Kelvin and Kim, J.H. (2006) Estimating technical efficiency of Australian dairy farms using alternative frontier methodologies. Applied Economics, 38 (19). pp. 2221-2236. ISSN 0003-6846 . (The full text of this publication is not available from this repository)

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Abstract

Technical efficiency is estimated and examined for a cross-section of Australian dairy farms using various frontier methodologies; Bayesian and Classical stochastic frontiers, and Data Envelopment Analysis. The results indicate technical inefficiency is present in the sample data. Also identified are statistical differences between the point estimates of technical efficiency generated by the various methodologies. However, the rank of farm level technical efficiency is statistically invariant to the estimation technique employed. Finally, when confidence/credible intervals of technical efficiency are compared significant overlap is found for many of the farms' intervals for all frontier methods employed. The results indicate that the choice of estimation methodology may matter, but the explanatory power of all frontier methods is significantly weaker when interval estimate of technical efficiency is examined.

Item Type: Article
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculties > Social Sciences > Kent Business School > Agri-Environment Economics
Depositing User: Iain Fraser
Date Deposited: 29 Aug 2008 15:35
Last Modified: 17 Apr 2014 11:13
Resource URI: http://kar.kent.ac.uk/id/eprint/5525 (The current URI for this page, for reference purposes)
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