The Relationship Between Technical Efficiency and Farm Size

Antonio Alvarez and Carlos Arias (carlos.arias@unileon.es)

No 2001/05, Efficiency Series Papers from University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG)

Abstract: This paper analyzes the relationship between technical efficiency and size in the framework provided by a production model. Technical efficiency is introduced in the model as a parameter, as a result of which it affects both the input demand and output supply of a profit maximizing producer. This framework allows us to study the theoretical relationship between technical efficiency and size. An empirical application explores this relationship using panel data of dairy farms in Spain.

Keywords: technical efficiency; size; dairy farms; panel data (search for similar items in EconPapers)
Pages: 19
Date: 2001
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Citations: View citations in EconPapers (2)

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