AN ANALYSIS OF TECHNICAL, ALLOCATIVE, AND SCALE INEFFICIENCY: THE CASE OF ECUADORIAN DAIRY FARMS

DeeVon Bailey, Basudeb Biswas (), Subal Kumbhakar and B. Kris Schulthies

Western Journal of Agricultural Economics, 1989, vol. 14, issue 01, 8

Abstract: The economic efficiency of 68 Ecuadorian dairy farms is investigated by estimating technical, allocative, and scale efficiencies for each using stochastic frontier methodology. Empirical results show that technical inefficiency exists for all of these farms - ranging from 11.8% to 12.8%. Large and medium-sized farms are found to be allocatively more efficient than the small farms as a group. Finally, estimates of scale inefficiency show that most of these farms are producing output at a level below the optimum.

Keywords: Livestock Production/Industries; Productivity Analysis (search for similar items in EconPapers)
Date: 1989
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Citations: View citations in EconPapers (20)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:wjagec:32456

DOI: 10.22004/ag.econ.32456

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