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

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Joint estimation of technology choice and technical efficiency: an application to organic and conventional dairy farming. / Kumbhakar, Subal C.; Tsionas, Michael; Sipiläinen, Timo.
In: Journal of Productivity Analysis, Vol. 31, No. 3, 06.2009, p. 151-161.

Research output: Contribution to Journal/Magazine › Journal article › peer-review

Harvard

Kumbhakar, SC, Tsionas, M & Sipiläinen, T 2009, 'Joint estimation of technology choice and technical efficiency: an application to organic and conventional dairy farming', Journal of Productivity Analysis, vol. 31, no. 3, pp. 151-161. https://doi.org/10.1007/s11123-008-0081-y

APA

Kumbhakar, S. C., Tsionas, M., & Sipiläinen, T. (2009). Joint estimation of technology choice and technical efficiency: an application to organic and conventional dairy farming. Journal of Productivity Analysis, 31(3), 151-161. https://doi.org/10.1007/s11123-008-0081-y

Vancouver

Kumbhakar SC, Tsionas M, Sipiläinen T. Joint estimation of technology choice and technical efficiency: an application to organic and conventional dairy farming. Journal of Productivity Analysis. 2009 Jun;31(3):151-161. doi: 10.1007/s11123-008-0081-y

Author

Kumbhakar, Subal C. ; Tsionas, Michael ; Sipiläinen, Timo. / Joint estimation of technology choice and technical efficiency : an application to organic and conventional dairy farming. In: Journal of Productivity Analysis. 2009 ; Vol. 31, No. 3. pp. 151-161.

Bibtex

@article{59b088aa23fc4f0bb3321f480499a744,
title = "Joint estimation of technology choice and technical efficiency: an application to organic and conventional dairy farming",
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.",
keywords = "Production function , Inefficiency , Endogeneity , Maximum likelihood",
author = "Kumbhakar, {Subal C.} and Michael Tsionas and Timo Sipil{\"a}inen",
year = "2009",
month = jun,
doi = "10.1007/s11123-008-0081-y",
language = "English",
volume = "31",
pages = "151--161",
journal = "Journal of Productivity Analysis",
issn = "0895-562X",
publisher = "Springer Netherlands",
number = "3",

}

RIS

TY - JOUR

T1 - Joint estimation of technology choice and technical efficiency

T2 - an application to organic and conventional dairy farming

AU - Kumbhakar, Subal C.

AU - Tsionas, Michael

AU - Sipiläinen, Timo

PY - 2009/6

Y1 - 2009/6

N2 - 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.

AB - 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.

KW - Production function

KW - Inefficiency

KW - Endogeneity

KW - Maximum likelihood

U2 - 10.1007/s11123-008-0081-y

DO - 10.1007/s11123-008-0081-y

M3 - Journal article

VL - 31

SP - 151

EP - 161

JO - Journal of Productivity Analysis

JF - Journal of Productivity Analysis

SN - 0895-562X

IS - 3

ER -