Modeling Unobserved Heterogeneity in New York Dairy Farms: One-Stage versus Two-Stage Models

Antonio Alvarez, Julio del Corral and Loren W. Tauer

Agricultural and Resource Economics Review, 2012, vol. 41, issue 3, 11

Abstract: Agricultural production estimates have often differentiated and estimated different technologies within a sample of farms. The common approach is to use observable farm characteristics to split the sample into groups and subsequently estimate different functions for each group. Alternatively, unique technologies can be determined by econometric procedures such as latent class models. This paper compares the results of a latent class model with the use of a priori information to split the sample using dairy farm data. Latent class separation appears to be a superior method of separating heterogeneous technologies and suggests that technology differences are multifaceted.

Keywords: Production Economics; Productivity Analysis; Research Methods/Statistical Methods (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (24)

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Related works:
Journal Article: Modeling Unobserved Heterogeneity in New York Dairy Farms: One-Stage versus Two-Stage Models (2012)
Working Paper: Detecting Technological Heterogeneity in New York Dairy Farms (2009)
Working Paper: Detecting Technological Heterogeneity in New York Dairy Farms (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:arerjl:141702

DOI: 10.22004/ag.econ.141702

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