Joint estimation of technology choice and technical efficiency:an application to organic and conventional dairy farming

Kumbhakar, Subal C. and Tsionas, Michael and Sipiläinen, Timo (2009) Joint estimation of technology choice and technical efficiency:an application to organic and conventional dairy farming. Journal of Productivity Analysis, 31 (3). pp. 151-161. ISSN 0895-562X

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Abstract

This paper proposes an econometric framework for joint estimation of technology and technology choice/adoption decision. The procedure takes into account the endogeneity of technology choice, which is likely to depend on inefficiency. Similarly, output from each technology depends on inefficiency. The effect of the dual role of inefficiency is estimated using a single-step maximum likelihood method. The proposed model is applied to a sample of conventional and organic dairy farms in Finland. The main findings are: the conventional technology is more productive, ceteris paribus; organic farms are, on average, less efficient technically than conventional farms; both efficiency and subsidy are found to be driving forces behind adoption of organic technology.

Item Type:
Journal Article
Journal or Publication Title:
Journal of Productivity Analysis
Uncontrolled Keywords:
/dk/atira/pure/subjectarea/asjc/3300/3301
Subjects:
ID Code:
65248
Deposited By:
Deposited On:
17 Jun 2013 13:13
Refereed?:
Yes
Published?:
Published
Last Modified:
01 Jul 2020 01:16