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An Econometric Decomposition of Dairy Output Growth
Author(s) -
Ahmad Munir,
BravoUreta Boris E.
Publication year - 1995
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1243814
Subject(s) - productivity , economics , technological change , production (economics) , decomposition , panel data , agricultural economics , econometrics , econometric model , technical change , technical progress , milk production , growth model , zoology , microeconomics , macroeconomics , chemistry , biology , organic chemistry
Fixed effects production functions and stochastic production frontiers are estimated and used to decompose dairy farm output growth into technological progress, technical efficiency, and increased input use or the size effect. Unbalanced panel data for ninety‐six Vermont dairy farmers for the 1971–84 period are utilized. The results show a 2.5% average annual increase in milk output. About 56% of this growth is attributed to the size effect and the remaining 44% to productivity growth. Technological progress contributed about 94% to total productivity growth, while improvements in technical efficiency accounted for only 6%.