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  • Articles  (10)
  • Cost  (10)
  • Oxford University Press  (10)
  • 2010-2014  (10)
  • 1975-1979
  • Economics  (10)
  • 1
    Publication Date: 2012-08-03
    Description: This paper analyses regional productivity and technical efficiency development in Russian agriculture. We formulate a regional stochastic frontier model by assuming that producers maximise return to the outlay. We control for regional heterogeneity and endogeneity/simultaneity in input decisions, technical efficiency and technical change by employing a two-step estimation procedure. In the first step, we use the system Generalized Method of Moments approach (system GMM), which gives consistent estimates of the production technology parameters. In the second step, we apply the standard stochastic frontier approach to estimate technical efficiency and its determinants.
    Keywords: 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
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  • 2
    Publication Date: 2014-04-05
    Description: A substantial share of U.S. hog producers incorporate antimicrobial drugs into their livestock's feed or water at sub-therapeutic levels to promote feed efficiency and weight gain. Recently, in response to concerns that the overuse of antibiotics in livestock could promote the development of antimicrobial drug-resistant bacteria, the U.S. Food and Drug Administration adopted a strategy to phase out the use of antibiotics for production purposes. This study uses a stochastic frontier model and data from the 2009 USDA Agricultural Resource Management Survey of feeder-to-finish hog producers to estimate the potential effects on hog output and output variability resulting from a ban on antibiotics used for growth promotion. We use propensity score nearest neighbor matching to create a balanced sample of sub-therapeutic antibiotic (STA) users and nonusers. We estimate the frontier model for the pooled sample and separately for users and non-users—which allows for a flexible interaction between STA use and the production technology. Point estimates for the matched sample indicate that STA use has a small positive effect on productivity and production risk, increasing output by 1.0–1.3% and reducing the standard deviation of unexplained output by 1.4%. The results indicate that improvements in productivity resulted exclusively from technological improvement rather than from an increase in technical efficiency.
    Keywords: D24 - Production ; Cost ; Capital and Total Factor Productivity ; Capacity, I18 - Government Policy ; Regulation ; Public Health, Q12 - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets, Q18 - Agricultural Policy ; Food Policy
    Print ISSN: 0002-9092
    Electronic ISSN: 1467-8276
    Topics: Agriculture, Forestry, Horticulture, Fishery, Domestic Science, Nutrition , Economics
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  • 3
    Publication Date: 2014-11-11
    Description: Flexibility can be considered a crucial factor of competitive advantage, especially under conditions of dynamically changing environments. Based on the classical microeconomic definition, flexibility is characterised as a firm's ability to change output by sustaining its average costs. Using some recent concepts developed in production economics, this article proposes a primal flexibility measure for multi-product firms. When decomposed, this measure offers useful insights into possible sources of flexibility, especially by investigating the role of both scale and scope economies. This approach provides the theoretical basis for our investigation into the magnitude and sources of flexibility in the Polish agricultural sector.
    Keywords: D24 - Production ; Cost ; Capital and Total Factor Productivity ; Capacity, I25 - Education and Economic Development, 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
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  • 4
    Publication Date: 2014-12-13
    Description: Grapevine leafroll disease threatens the economic sustainability of the grape and wine industry in the United States and around the world. This viral disease reduces yield, delays fruit ripening, and affects wine quality. Although there is new information on the disease spatial-dynamic diffusion, little is known about profit-maximizing control strategies. Using cellular automata, we model the disease spatial-dynamic diffusion for individual plants in a vineyard, evaluate nonspatial and spatial control strategies, and rank them based on vineyard expected net present values. Nonspatial strategies consist of roguing and replacing symptomatic grapevines. In spatial strategies, symptomatic vines are rogued and replaced, and their nonsymptomatic neighbors are virus-tested, then rogued and replaced if the test is positive. Both nonspatial and spatial classes of strategies are formulated and examined with and without considering vine age. We find that spatial strategies targeting immediate neighbors of symptomatic vines dominate nonspatial strategies, increasing the vineyard expected net present value by 18% to 19% relative to the strategy of no disease control. We also find that age-structured disease control is preferred to non-age-structured control but only for nonspatial strategies. Sensitivity analyses show that disease eradication is possible if either the disease transmission rate or the virus undetectability period is substantially reduced.
    Keywords: C15 - Simulation Methods, C63 - Computational Techniques, D24 - Production ; Cost ; Capital and Total Factor Productivity ; Capacity
    Print ISSN: 0002-9092
    Electronic ISSN: 1467-8276
    Topics: Agriculture, Forestry, Horticulture, Fishery, Domestic Science, Nutrition , Economics
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  • 5
    Publication Date: 2014-02-18
    Description: Using data from a large sample of Italian manufacturing firms we provide novel empirical evidence on the magnitude of local productivity advantages in two types of spatially concentrated regions: urban areas (UAs) and industrial districts (IDs). A larger surplus is estimated for cities compared to industrial clusters, only partially related to the more skilled workforce employed in UAs. Over the last decade, the productivity premium of UAs has remained essentially unchanged, while that of IDs has showed a tendency to decline, suggesting that the former were better able to cope with the major shocks that hit the world economy.
    Keywords: C52 - Model Evaluation and Selection, D24 - Production ; Cost ; Capital and Total Factor Productivity ; Capacity, R12 - Size and Spatial Distributions of Regional Economic Activity
    Print ISSN: 1468-2702
    Electronic ISSN: 1468-2710
    Topics: Geography , Economics
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  • 6
    Publication Date: 2012-05-29
    Description: This paper develops a framework for analysing the sources of total factor productivity (TFP) changes by explicitly taking into account the damage-control nature of pesticides. In the proposed framework, TFP changes are attributed to the conventional sources of growth (i.e. technical change, scale effect and changes in technical efficiency) and the damage-control effect which consists of three distinct components: the first one is due to changes in the initial pest infestation, the second is a spillover effect arising from neighbours' use of preventive inputs and the third is related to abatement effectiveness. The proposed model is applied to a panel of olive-growing farms in Crete, Greece, during the period 1999–2003. The empirical results indicate that the damage-control effect accounted, on average, for 5 per cent of the annual TFP growth and its main component was the improvements in abatement effectiveness.
    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
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  • 7
    Publication Date: 2013-05-31
    Description: Targeted environmental policies for farmlands may improve the cost efficiency of conservation programmes if one can identify those farms that produce public goods with the least cost. We derive shadow values of producing crop diversity for a sample of Finnish conventional and organic crop farms in the period 1994–2002 in order to examine their opportunity costs of conservation. Our results of Data Envelopment Analysis show that there is variation in the shadow values between farms and between the technologies adopted. The degree of cost heterogeneity and farms' potential for specialisation in producing environmental outputs determine whether voluntary programmes such as auctions for conservation payments are economically reasonable.
    Keywords: C21 - Cross-Sectional Models ; Spatial Models ; Treatment Effect Models, D24 - Production ; Cost ; Capital and Total Factor Productivity ; Capacity, H41 - Public Goods, Q12 - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets, Q24 - Land
    Print ISSN: 0165-1587
    Electronic ISSN: 1464-3618
    Topics: Agriculture, Forestry, Horticulture, Fishery, Domestic Science, Nutrition , Economics
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  • 8
    Publication Date: 2014-07-23
    Description: In the United States, climate change is likely to increase average daily temperatures and the frequency of heat waves, which can reduce meat and milk production in animals. Methods that livestock producers use to mitigate thermal stress—including modifications to animal management or housing—tend to increase production costs. We use operation-level economic data coupled with finely-scaled climate data to estimate how the local thermal environment affects the technical efficiency of dairies across the United States. We then use this information to estimate the possible decline in milk production in 2030 resulting from climate change-induced heat stress under the simplifying assumptions that the production technology, location of production, and other factors are held constant. For four climate model scenarios, the results indicate modest heat-stress-related production declines by 2030, with the largest declines occurring in the southern states.
    Keywords: D24 - Production ; Cost ; Capital and Total Factor Productivity ; Capacity, Q12 - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets, Q54 - Climate ; Natural Disasters ; Global Warming
    Print ISSN: 0002-9092
    Electronic ISSN: 1467-8276
    Topics: Agriculture, Forestry, Horticulture, Fishery, Domestic Science, Nutrition , Economics
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  • 9
    Publication Date: 2012-12-28
    Description: This paper studies the effect of EU harmonisation of food regulations on time-varying, firm-heterogeneous mark-ups using data on Dutch food-processing firms during 1992–2005. EU product standard harmonisation is measured using data at the 8-digit combined nomenclature product level. EU harmonisation generates short- and long-run pro-competitive effects: on average, an increase of 50 per cent in the sales-weighted coverage ratio of EU harmonisation leads to a decrease in mark-ups of 7 per cent after 1 year and by 11.5 per cent in the long-run. By taking account of firm heterogeneity, I show that this pro-competitive effect is more pronounced for (i) small firms, (ii) more concentrated firms, (iii) single-product firms, (iv) firms belonging to food sub-sectors which are less affected by EU harmonisation and (v) during the first half of the sample period.
    Keywords: C23 - Models with Panel Data, D24 - Production ; Cost ; Capital and Total Factor Productivity ; Capacity, F15 - Economic Integration, L11 - Production, Pricing, and Market Structure ; Size Distribution of Firms
    Print ISSN: 0165-1587
    Electronic ISSN: 1464-3618
    Topics: Agriculture, Forestry, Horticulture, Fishery, Domestic Science, Nutrition , Economics
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  • 10
    Publication Date: 2013-12-24
    Description: Agriculture and agricultural policy in Finland and Norway have shared many common features in the past, except that Finland joined the European Union in 1995. In this article, we examine profitability and productivity dynamics in Finnish and Norwegian farms during the period 1991 to 2008. Our analysis draws on a decomposition of profitability change into various sources. The results provide evidence that the stronger liberalisation of agricultural policy in Finland has provided greater flexibility for farmers to change and thus has created better scope for productivity and profitability improvements compared with Norway.
    Keywords: 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
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