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Analyzing the Determinants of Technical Efficiency Among Traditional Dairy Farms in Wisconsin: A Quantile Regression Approach

Benaissa Chidmi (), Daniel Solis (), Margil Funtanilla and Victor E. Cabrera

No 61320, 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado from Agricultural and Applied Economics Association

Abstract: This study analyzes the determinants of TE among traditional dairy farms in the State of Wisconsin taking into account dairy farms’ heterogeneity. To do so, we first estimate a production frontier and the level of TE using the SPF framework. Then we analyze the determinants of TI using a quantile regression analysis. The results indicate that the determinants of TE affect in very specific ways farmers with different levels of TE. This result confirms our hypothesis on the importance of controlling for farm heterogeneity when analyzing the determinants of TE. This issue is also important from an empirical point of view. Policy makers could improve the effectiveness of their work by targeting specific agricultural services and aid designed for farmers with different level of TE.

Keywords: technical efficiency; dairy; quantile regression; Agribusiness; Agricultural and Food Policy; Marketing; Production Economics; Productivity Analysis (search for similar items in EconPapers)
Date: 2010
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