This paper investigates the relation between unobserved farm productivity and other production factors in a system of netput equations for specialised pig breeding farms in the Netherlands. In order to estimate the system, a Hausman-Taylor panel data estimator is developed for a system of equations with unbalanced panel data. Tests on correlation between model variables and farm-effects are performed, yielding insight in the sources of differences in total factor productivity and its components (e.g. managerial ability and scale economies). Results indicate that specialised pig breeding farms that are characterised by high total factor productivity have more buildings and machinery than farms with low total factor productivity.
|Journal||Journal of Agricultural Economics|
|Publication status||Published - 2003|
- instrumental variables estimators
- efficient estimation