 Are dairy farms becoming more intensive? Impact on farm efficiencyAntonio Alvarez and Carlos Arias () No 2013/01, Efficiency Series Papers from University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG) Abstract: The recent trend in the intensification of dairy farming in Europe has sparked an interest in studying the economic consequences of this process. However, classifying empirically farms as extensive or intensive is not a straightforward task. In recent papers, Latent Class Models (LCM) have been used to avoid an ad-hoc split of the sample into intensive and extensive dairy farms. A limitation of current specifications of LCM is that they do not allow farms to switch between different production systems over time. This feature of the model is at odds with the process of intensification of the European dairy industry in past decades. We allow for changes of production systems over time by estimating a single LCM model but splitting the original panel into two periods and find that the probability of using the intensive technology increases over time. Our estimation proposal opens up the possibility of studying the effects of intensification not only across farms but also over time. Keywords: Dairy farms; intensification; latent class model; panel data (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:oeg:wpaper:2013/01 Access Statistics for this paper More papers in Efficiency Series Papers from University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG) Departamento de Economía, Facultad de Economía y Empresa, Universidad de Oviedo, Avenida del Cristo, s/n. 33006 Oviedo - SPAIN. Contact information at EDIRC. |
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