Economics at your fingertips  

Sawmill production in the interior of British Columbia: A stochastic ray frontier approach

Kurt Niquidet and Harry Nelson

Journal of Forest Economics, 2010, vol. 16, issue 4, 257-267

Abstract: We examined the productive efficiency of the interior sawmilling industry in British Columbia using stochastic frontier analysis. Prior sawmilling studies using this method have neglected the multi-output nature of sawmills. To accommodate both lumber and chips as outputs, we used a ray production function and adopted it into the stochastic frontier framework. A translog functional form was specified with three inputs (i.e., capital, labour, and roundwood) and applied to five years (2003-2007) of mill specific production data. The ray production function is flexible allowing factor productivity to vary with the output mix. Results indicated the presence of both economies of scale and technical inefficiency. This suggested that a long-run equilibrium had not yet been reached during this time and might explain recent restructuring occurring in this region.

Keywords: Ray; production; function; Stochastic; frontier; analysis; Sawmilling (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.elsevier. ... 701775/bibliographic

Access Statistics for this article

Journal of Forest Economics is currently edited by P. Gong and R. Brännlund

More articles in Journal of Forest Economics from Elsevier
Bibliographic data for series maintained by Haili He ().

Page updated 2020-09-25
Handle: RePEc:eee:foreco:v:16:y:2010:i:4:p:257-267