Analysis of the Economic Activity of Dairy Farms in Poland: Results obtained from the Short-run Cost Function

Jerzy Marzec and Andrzej Pisulewski ()

Collegium of Economic Analysis Annals, 2015, issue 39, 167-182

Abstract: The aim of the research was the analysis of Polish dairy farms under the assumption of cost minimizing behavior. This implies that cost inefficiency can be attributable to technical or allocative inefficiency. The panel data on economic results of dairy farms was provided by FADN (Farm Accountancy Data Network). The main results have been obtained when employing translog variable cost function and using a Bayesian approach. Among the four analyzed cost elasticities, the highest has been found with respect to materials and the lowest one with respect to livestock. The estimation of returns to scale indicates the increasing economies of scale, both short-term and long-term. However, in the covered period (2004–2011) the returns to scale were steadily declining. In the above-mentioned period, the average cost efficiency of Polish dairy farms equaled 68%.

Keywords: stochastic frontier models; cost efficiency; panel data; dairy farms (search for similar items in EconPapers)
JEL-codes: C23 D22 D24 Q12 (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations:

Downloads: (external link)
http://rocznikikae.sgh.waw.pl/p/roczniki_kae_z39_11.pdf Full text (application/pdf)

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: https://EconPapers.repec.org/RePEc:sgh:annals:i:39:y:2015:p:167-182

Access Statistics for this article

Collegium of Economic Analysis Annals is currently edited by Joanna Plebaniak, Beata Czarnacka-Chrobot

More articles in Collegium of Economic Analysis Annals from Warsaw School of Economics, Collegium of Economic Analysis Contact information at EDIRC.
Bibliographic data for series maintained by Michał Bernardelli ().