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Cited by 1,162Efficiency Analysis Using DEAAgricultural economics and policiesSustainable Agricultural Systems Analysis

A Generalized Production Frontier Approach for Estimating Determinants of Inefficiency in U.S. Dairy Farms

Kumbhakar, Subal C., Ghosh, Soumendra, McGuckin, J. Thomas·1991·Journal of Business & Economic Statistics
DOI 10.1080/07350015.1991.10509853
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Abstract

This article investigates farm-level efficiency of U.S. dairy farmers by estimating their technical and allocative efficiency. Technical inefficiency is assumed to be composed of a deterministic component that is a function of some farm-specific characteristics and a random component. By doing this we extend the stochastic frontier methodology in which determinants of technicial inefficiency are explicitly introduced in the model. Given the inputs, variations in efficiency of farms are then explained by both deterministic and random components of technical inefficiency. The empirical results indicate that (a) levels of education of the farmer are important factors determining technical inefficiency and (b) large farms are more efficient (technically) than small and medium-sized farms. Both technical and allocative inefficiency are found to decrease with increase in the level of education of the farmer.

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  • The KGMHLBC model does not have the scaling property because the variance of the pre-truncation normal is assumed to be constant (not dependent on z).

    “This model does not have the scaling property because the variance of the pre-truncation normal is assumed to be constant (not dependent on z).”

    From One-Step and Two-Step Estimation of the Effects of Exogenous Variables on Technical Efficiency Levels (2002) · cites this paper as Kumbhakar, Ghosh and McGuckin (1991)

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Authors
Kumbhakar, S. C., Ghosh, S., & McGuckin, J. T.
Affiliations
  • The University of Texas at Austin (US)
  • New Mexico State University (US)
ORCID
Kumbhakar, Subal C.
Venue
Journal of Business & Economic Statistics
Publisher
Informa UK Limited
Published
1991-07
Volume
9
Issue
3
Pages
279-286
ISSN
  • 0735-0015 (ISSN-L)
  • 1537-2707
DOI
10.1080/07350015.1991.10509853
OpenAlex
W2041212942
Cited by
1,162
References
23
Citations by year
2026: 18 · 2025: 20 · 2024: 37 · 2023: 34 · 2022: 40 · 2021: 37 · 2020: 40 · 2019: 42 · 2018: 61 · 2017: 45 · 2016: 42 · 2015: 57 · 2014: 70 · 2013: 54 · 2012: 59
FWCI
3.97
Type
journal article
Language
en
Open access
closed
Locations
Journal of Business and Economic Statistics (publishedVersion)
Funders
U.S. Department of Agriculture
Topics
  • Social Sciences › Decision Sciences › Management Science and Operations Research › Efficiency Analysis Using DEA
  • Social Sciences › Safety Research › Agricultural economics and policies
  • Physical Sciences › Environmental Science › Environmental Chemistry › Sustainable Agricultural Systems Analysis
Keywords
dairy farms, technical efficiency, allocative efficiency, determinants of technical inefficiency, farmer education, farm size, farm-level efficiency

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