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  • 1
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    Agglomeration Effects in Ontarios Dairy Farming (2016)
    Oxford University Press
    Details
    Publication Date: 2016-07-09
    Description: This paper examines the agglomeration hypothesis, which states that a firm’s productive efficiency is increased by closer proximity to other firms. Using a stochastic input distant function with heteroskedastic inefficiency effects, we find that the density of Ontario dairy farms has a significant positive economic effect on production efficiency. The finding has implications for understanding agricultural firm location and farmer-led efforts to preserve agricultural farming activities in specific locations.
    Keywords: D24 - Production ; Cost ; Capital and Total Factor Productivity ; Capacity, Q12 - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets, R11 - Regional Economic Activity: Growth, Development, and Changes
    Print ISSN: 0002-9092
    Electronic ISSN: 1467-8276
    Topics: Agriculture, Forestry, Horticulture, Fishery, Domestic Science, Nutrition , Economics
    Published by Oxford University Press
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  • 2
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    Contributions of Productivity and Relative Price Changes to Farm-level Profitability Change (2016)
    Oxford University Press
    Details
    Publication Date: 2016-07-09
    Description: This article investigates the sources of profitability change at the farm level, by farm size and specialization, with an application to a sample of 256 farms in Kansas from 1993 to 2010. Using the Lowe index method, profitability change is decomposed into changes in total factor productivity and terms of trade. The nonparametric data envelopment analysis method is used to further decompose total factor productivity into technical change and different measures of output-oriented efficiency change. Finally, the system-Generalized Methods of Moments approach is employed to investigate the dynamic relationship between different components of productivity on farm profitability. Results indicate that profitability change is mainly driven by total factor productivity change. The main source of total factor productivity change is technical change. The upward-shifting frontier results in declining technical efficiency. Results point towards the need to support research and development without ignoring efforts to encourage the uptake of existing technologies.
    Keywords: D24 - Production ; Cost ; Capital and Total Factor Productivity ; Capacity, O47 - Measurement of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence, Q10 - General
    Print ISSN: 0002-9092
    Electronic ISSN: 1467-8276
    Topics: Agriculture, Forestry, Horticulture, Fishery, Domestic Science, Nutrition , Economics
    Published by Oxford University Press
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  • 3
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    The Induced Innovation Hypothesis and U.S. Public Agricultural Research (2015)
    Oxford University Press
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    Publication Date: 2015-04-18
    Description: Applicability of the induced innovation hypothesis—that a change in relative input prices induces innovation to economize use of the increasingly expensive input ( Hicks 1932 )—is examined for U.S. public agricultural research. A reduced-form test is developed using input prices from the agricultural production sector, expenditures from the public research sector aimed at developing new technology to save specific agricultural inputs, and variables to control for innovation marginal cost differences and nonhomotheticity. Unlike recent demand-side studies that soundly reject the induced innovation hypothesis for agriculture, support for the hypothesis is found for several input pairings through these tests of public agricultural research using state-level panel data.
    Keywords: D24 - Production ; Cost ; Capital and Total Factor Productivity ; Capacity, O30 - General
    Print ISSN: 0002-9092
    Electronic ISSN: 1467-8276
    Topics: Agriculture, Forestry, Horticulture, Fishery, Domestic Science, Nutrition , Economics
    Published by Oxford University Press
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  • 4
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    Optimal Directions for Directional Distance Functions: An Exploration of Potential Reductions of Greenhouse Gases (2015)
    Oxford University Press
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    Publication Date: 2015-04-18
    Description: This article explores the reduction potential of greenhouse gases for major pollution-emitting countries of the world using nonparametric productivity measurement methods and directional distance functions. In contrast to the existing literature, we apply optimization methods to endogenously determine optimal directions for the efficiency analysis. These directions represent the compromise of output enhancement and emissions reduction. The results show that for reasonable directions the adoption of best practices would lead to sizable emission reductions in a range of approximately 20% compared with current levels.
    Keywords: C14 - Semiparametric and Nonparametric Methods, D24 - Production ; Cost ; Capital and Total Factor Productivity ; Capacity, Q54 - Climate ; Natural Disasters ; Global Warming
    Print ISSN: 0002-9092
    Electronic ISSN: 1467-8276
    Topics: Agriculture, Forestry, Horticulture, Fishery, Domestic Science, Nutrition , Economics
    Published by Oxford University Press
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  • 5
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    Productivity or Demand: Determinants of Plant Survival and Ownership Change in the U.S. Poultry Industry (2015)
    Oxford University Press
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    Publication Date: 2015-02-11
    Description: We study the productivity-survival link in the U.S. poultry processing industry using longitudinal data constructed from 5 censuses of manufactures between 1987 and 2007. First, we study the effects of physical productivity and demand-specific factors on plant survival and ownership change. Second, we analyze the determinants of the firm-level expansion. The results show that higher demand-specific factors decrease the probability of exit and increase the probability of ownership change. The effect of physical productivity on the probability of exit or ownership change is generally insignificant. Also, firms with higher demand-specific factors have higher probability to expand, whereas average firm-level physical productivity turns out to be an insignificant determinant of firm expansion. Since demand specific factors all favor large companies, this could expedite industry concentration process already well under way and could raise new concerns over contract growers' income and consumers' welfare.
    Keywords: D24 - Production ; Cost ; Capital and Total Factor Productivity ; Capacity, L66 - Food ; Beverages ; Cosmetics ; Tobacco ; Wine and Spirits
    Print ISSN: 2040-5790
    Electronic ISSN: 2040-5804
    Topics: Agriculture, Forestry, Horticulture, Fishery, Domestic Science, Nutrition , Economics
    Published by Oxford University Press
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  • 6
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    Firm Dynamics, Productivity Growth, and Job Creation in Developing Countries: The Role of Micro- and Small Enterprises (2015)
    Oxford University Press
    Details
    Publication Date: 2015-01-29
    Description: The conventional wisdom on firm dynamics, productivity growth, and job creation in developing countries is based on data that, by design, excludes a vast number of micro- and small enterprises, many of which are informal. Some may not view this exclusion as an issue, on the grounds that the omitted economic units reflect survivorship rather than entrepreneurship. However, the thresholds that determine the truncation of the data are relatively arbitrary, and the firms that are typically excluded are associated with a large share of total employment. This paper assesses the ways in which the conventional wisdom on developing countries would change if micro- and small enterprises were taken into account in the analyses. The assessment shows that micro- and small enterprises account for a greater share of gross job creation and destruction than acknowledged by the conventional wisdom. It also reveals a greater dispersion of firm productivity, a weaker correlation between firm productivity and firm size, and a smaller contribution of within-firm productivity gains to aggregate productivity growth. This assessment points to new directions in the data and research efforts needed to understand the role of micro- and small enterprises and to identify policies with the potential to foster job creation and aggregate productivity growth in developing countries.
    Keywords: D22 - Firm Behavior: Empirical Analysis, D24 - Production ; Cost ; Capital and Total Factor Productivity ; Capacity, L11 - Production, Pricing, and Market Structure ; Size Distribution of Firms, L25 - Firm Performance: Size, Diversification, and Scope, L26 - Entrepreneurship, J23 - Labor Demand, O40 - General
    Print ISSN: 0257-3032
    Electronic ISSN: 1564-6971
    Topics: Economics
    Published by Oxford University Press
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  • 7
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    Investment Age and Dynamic Productivity Growth in the Spanish Food Processing Industry (2016)
    Oxford University Press
    Details
    Publication Date: 2016-04-24
    Description: This article analyzes the relation between investment age, measured as the number of years since investment spike, and dynamic productivity growth and its components, which include dynamic technical change, dynamic inefficiency change, and dynamic scale inefficiency change. The empirical application focuses on firm-level data for the Spanish food processing industry covering the period from 1996 to 2011. This investigation of the impact of firms' investment decisions on productivity growth employs a dynamic production framework and analyzes the impact of these decisions on the components of dynamic productivity growth. Our findings show that dynamic productivity growth is negatively affected by investment spikes in both the meat processing and oils and fats industries, and that dynamic inefficiency change initially falls just after the infusion of large investment for oils and fats firms, but then grows as the firms acquire experience with this investment. We further find that investment spikes lead to improvements in dynamic technical change and worsening in dynamic technical inefficiency change in the meat processing industry, while dynamic scale inefficiency change was negatively impacted in both industries.
    Keywords: D24 - Production ; Cost ; Capital and Total Factor Productivity ; Capacity, D92 - Intertemporal Firm Choice and Growth, Investment, or Financing, L66 - Food ; Beverages ; Cosmetics ; Tobacco ; Wine and Spirits
    Print ISSN: 0002-9092
    Electronic ISSN: 1467-8276
    Topics: Agriculture, Forestry, Horticulture, Fishery, Domestic Science, Nutrition , Economics
    Published by Oxford University Press
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  • 8
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    Linkages and spillovers in global production networks: firm-level analysis of the Czech automotive industry (2016)
    Oxford University Press
    Details
    Publication Date: 2016-03-19
    Description: The aim of this article is to analyze the linkages between and spillovers from foreign-owned (foreign) to domestic-owned (domestic) firms in the Czech automotive industry. Theoretically and conceptually, our research draws on two strands of literature: spillovers, linkages and effects of foreign direct investment on domestic firms and regional economic development; and literature on global production networks, global value chains and industrial upgrading. Empirical analysis is based upon unique data collected by the authors through a questionnaire completed by 317 foreign and domestic firms in 2009 and on-site interviews with 100 firms conducted between 2009 and 2011. Data analysis has identified a low share of domestic suppliers in the total supplies of Czech-based foreign firms and diverse spillover effects from foreign to domestic firms. Domestic firms vary in their capabilities and absorptive capacity which, along with the particular nature of the contemporary automotive value chain, significantly influence their ability and potential to benefit from linkages and spillovers.
    Keywords: D24 - Production ; Cost ; Capital and Total Factor Productivity ; Capacity, L62 - Automobiles ; Other Transportation Equipment
    Print ISSN: 1468-2702
    Electronic ISSN: 1468-2710
    Topics: Geography , Economics
    Published by Oxford University Press
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  • 9
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    Improving Food Bank Gleaning Operations: An Application in New York State (2016)
    Oxford University Press
    Details
    Publication Date: 2016-03-31
    Description: Gleaning is increasingly attracting the attention of food safety networks, including food banks, as a valuable tool that simultaneously reduces food loss and alleviates food insecurity. However, managing gleaning operations can be challenging because the arrival of gleaning opportunities and the attendance of gleaner volunteers are both stochastic. We develop a stochastic optimization model to characterize and optimize a gleaning operation. The food bank chooses the gleaning schedule, which affects the gleaner capacity and the number of gleaning opportunities scheduled. In a specific field study of the Food Bank of the Southern Tier in New York, we analyze the tradeoff between call and volume service levels to find the optimum schedule that maximizes the expected total volume gleaned. Moreover, we find that increasing the gleaning window and increasing slot availability can be used as substitute mechanisms for increasing the total volume gleaned. Additionally, we use our model to assess the impact of recruiting more volunteer gleaners.
    Keywords: C61 - Optimization Techniques ; Programming Models ; Dynamic Analysis, C63 - Computational Techniques, D24 - Production ; Cost ; Capital and Total Factor Productivity ; Capacity, Q18 - Agricultural Policy ; Food Policy
    Print ISSN: 0002-9092
    Electronic ISSN: 1467-8276
    Topics: Agriculture, Forestry, Horticulture, Fishery, Domestic Science, Nutrition , Economics
    Published by Oxford University Press
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  • 10
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    U.S. Agricultural Productivity: A Review of USDA Economic Research Service Methods (2016)
    Oxford University Press
    Details
    Publication Date: 2016-02-10
    Description: The USDA Economic Research Service has emerged as an acknowledged intellectual leader in the construction and integration of national and state-level productivity accounts in agriculture. The national and state-level ERS productivity measures are widely referred to and used, and international sectoral comparisons rely on the ERS production accounts for foundation methodology in constructing agricultural productivity accounts in other countries. This leadership role has endured for many decades and accelerated in response to the AAEA-USDA Task Force review of the agricultural productivity accounts ( Gardner et al. 1980 ). It is against this backdrop of vigorous intellectual leadership that an external review committee has examined the data sources, methodology, ongoing research, documentation, and reporting of the ERS agricultural productivity accounts. Our recommendations are many and some are substantial. Two of the most important recommendations address overarching concerns of documentation and efficiency, two more consider website communication of methods and data, and four focus on the renewal and construction of the state-level accounts.
    Keywords: D24 - Production ; Cost ; Capital and Total Factor Productivity ; Capacity, O30 - General
    Print ISSN: 2040-5790
    Electronic ISSN: 2040-5804
    Topics: Agriculture, Forestry, Horticulture, Fishery, Domestic Science, Nutrition , Economics
    Published by Oxford University Press
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  • 11
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    Can We Improve Farm Performance? The Determinants of Farm Technical and Environmental Efficiency (2015)
    Oxford University Press
    Details
    Publication Date: 2015-11-06
    Description: The environmental impacts of economic activities have become an important aspect in the evaluation of their overall performance. Consistently, traditional measures of technical efficiency have been extended to assess both the economic and environmental performance of firms. This study aims to use these measures to analyze the performance of a sample of Catalan arable crop farms. Specifically, we apply the methodology recently developed by Coelli et al. (2007) and Murty et al. (2012) , and extend it to a consideration of the stochastic conditions under which production takes place as proposed by Chambers and Quiggin (1998 and 2000 ). Results suggest that efficiency ratings depend on model specification. Also, ignoring the stochastic nature of production yields downward-biased efficiency scores. Empirical findings suggest that environmental and technical efficiency are strongly interrelated indicating that an efficient use of chemical inputs improves both environmental and technical performance of farms.
    Keywords: C61 - Optimization Techniques ; Programming Models ; Dynamic Analysis, D24 - Production ; Cost ; Capital and Total Factor Productivity ; Capacity, Q12 - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    Print ISSN: 2040-5790
    Electronic ISSN: 2040-5804
    Topics: Agriculture, Forestry, Horticulture, Fishery, Domestic Science, Nutrition , Economics
    Published by Oxford University Press
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  • 12
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    Investment, technical change and efficiency: empirical evidence from German dairy production (2015)
    Oxford University Press
    Details
    Publication Date: 2015-02-06
    Description: This empirical study aims to shed light on the dynamic linkages between innovation, efficiency and productivity at the individual farm level. We use a comprehensive dataset for dairy farms in Germany for the period 1996–2010. Based on a directional distance frontier framework and the Luenberger index, we estimate the changes in efficiency, technical change and productivity over the period considered and simultaneously investigate possible factors for technically efficient milk production at farm level. We find that investments in innovative technology indeed increase the productivity of dairy production by shifting out the production frontier. Our findings further imply that investments in innovative dairy technologies require a sufficient level of complementary education to trigger also an increase in efficiency at farm level. The quality of human capital in terms of educational training seems finally crucial for a lasting increase in efficiency as a result of innovation.
    Keywords: C23 - Models with Panel Data, D24 - Production ; Cost ; Capital and Total Factor Productivity ; Capacity, Q12 - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    Print ISSN: 0165-1587
    Electronic ISSN: 1464-3618
    Topics: Agriculture, Forestry, Horticulture, Fishery, Domestic Science, Nutrition , Economics
    Published by Oxford University Press
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