Decomposing dynamic profit inefficiency of Belgian dairy farms

Research output: Contribution to journalArticleAcademicpeer-review

2 Citations (Scopus)

Abstract

This paper introduces a nonparametric framework for analysing dynamic profit inefficiency and applies this to a sample of Belgian, specialised dairy farms from 1996 to 2008. Profit inefficiency is decomposed into technical and allocative inefficiency. The paper also decomposes profit inefficiency into the contributions of output, input, and investment. Finally, the paper identifies the contributions of technical and allocative inefficiency in output, input and investment. The results suggest substantial profit inefficiency under the dairy-quota system, mainly driven by allocative inefficiency of variable input use and output production.
Original languageEnglish
Pages (from-to)81-99
JournalEuropean Review of Agricultural Economics
Volume45
Issue number1
DOIs
Publication statusPublished - 1 Feb 2018

Fingerprint

dairy farming
profits and margins
dairies
Profit
Inefficiency
Dairy farms
Farms
Allocative inefficiency
sampling
Technical inefficiency

Keywords

  • Dairy sector
  • Distance function
  • Dynamic efficiency

Cite this

@article{866f6512b34c4ccfb5cdec4831f3e99a,
title = "Decomposing dynamic profit inefficiency of Belgian dairy farms",
abstract = "This paper introduces a nonparametric framework for analysing dynamic profit inefficiency and applies this to a sample of Belgian, specialised dairy farms from 1996 to 2008. Profit inefficiency is decomposed into technical and allocative inefficiency. The paper also decomposes profit inefficiency into the contributions of output, input, and investment. Finally, the paper identifies the contributions of technical and allocative inefficiency in output, input and investment. The results suggest substantial profit inefficiency under the dairy-quota system, mainly driven by allocative inefficiency of variable input use and output production.",
keywords = "Dairy sector, Distance function, Dynamic efficiency",
author = "Frederic Ang and Lansink, {Alfons Oude}",
year = "2018",
month = "2",
day = "1",
doi = "10.1093/erae/jbx024",
language = "English",
volume = "45",
pages = "81--99",
journal = "European Review of Agricultural Economics",
issn = "0165-1587",
publisher = "Oxford University Press",
number = "1",

}

Decomposing dynamic profit inefficiency of Belgian dairy farms. / Ang, Frederic; Lansink, Alfons Oude.

In: European Review of Agricultural Economics, Vol. 45, No. 1, 01.02.2018, p. 81-99.

Research output: Contribution to journalArticleAcademicpeer-review

TY - JOUR

T1 - Decomposing dynamic profit inefficiency of Belgian dairy farms

AU - Ang, Frederic

AU - Lansink, Alfons Oude

PY - 2018/2/1

Y1 - 2018/2/1

N2 - This paper introduces a nonparametric framework for analysing dynamic profit inefficiency and applies this to a sample of Belgian, specialised dairy farms from 1996 to 2008. Profit inefficiency is decomposed into technical and allocative inefficiency. The paper also decomposes profit inefficiency into the contributions of output, input, and investment. Finally, the paper identifies the contributions of technical and allocative inefficiency in output, input and investment. The results suggest substantial profit inefficiency under the dairy-quota system, mainly driven by allocative inefficiency of variable input use and output production.

AB - This paper introduces a nonparametric framework for analysing dynamic profit inefficiency and applies this to a sample of Belgian, specialised dairy farms from 1996 to 2008. Profit inefficiency is decomposed into technical and allocative inefficiency. The paper also decomposes profit inefficiency into the contributions of output, input, and investment. Finally, the paper identifies the contributions of technical and allocative inefficiency in output, input and investment. The results suggest substantial profit inefficiency under the dairy-quota system, mainly driven by allocative inefficiency of variable input use and output production.

KW - Dairy sector

KW - Distance function

KW - Dynamic efficiency

U2 - 10.1093/erae/jbx024

DO - 10.1093/erae/jbx024

M3 - Article

VL - 45

SP - 81

EP - 99

JO - European Review of Agricultural Economics

JF - European Review of Agricultural Economics

SN - 0165-1587

IS - 1

ER -