Measurement of dynamic efficiency: A directional distance function parametric approach

Teresa Serra; Alfons Oude Lansink; Spiro E. Stefanou

doi:10.1093/ajae/aaq175

Measurement of dynamic efficiency: A directional distance function parametric approach

Teresa Serra, Alfons Oude Lansink, Spiro E. Stefanou

Research output: Contribution to journal › Article › peer-review

Abstract

This research proposes a parametric estimation of the structural dynamic efficiency measures proposed in 2009 by Silva and Oude Lansink. Overall, technical and allocative efficiency measurements are derived based on a directional distance function and the duality between this function and the optimal value function. The applicability of the parametric proposal is illustrated by assessing dynamic efficiency ratings for a sample of Dutch dairy farms observed from 1995 to 2005. Dynamic efficiency ratings indicate the possibility to achieve long-run cost savings on the order of 12 that are mainly to be accomplished through a reduction in input use.

Original language	English (US)
Pages (from-to)	752-763
Number of pages	12
Journal	American Journal of Agricultural Economics
Volume	93
Issue number	3
DOIs	https://doi.org/10.1093/ajae/aaq175
State	Published - Apr 2011
Externally published	Yes

Keywords

dairy sector
duality
dynamic efficiency

ASJC Scopus subject areas

Agricultural and Biological Sciences (miscellaneous)
Economics and Econometrics

Online availability

10.1093/ajae/aaq175

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title = "Measurement of dynamic efficiency: A directional distance function parametric approach",

abstract = "This research proposes a parametric estimation of the structural dynamic efficiency measures proposed in 2009 by Silva and Oude Lansink. Overall, technical and allocative efficiency measurements are derived based on a directional distance function and the duality between this function and the optimal value function. The applicability of the parametric proposal is illustrated by assessing dynamic efficiency ratings for a sample of Dutch dairy farms observed from 1995 to 2005. Dynamic efficiency ratings indicate the possibility to achieve long-run cost savings on the order of 12 that are mainly to be accomplished through a reduction in input use.",

keywords = "dairy sector, duality, dynamic efficiency",

author = "Teresa Serra and Lansink, \{Alfons Oude\} and Stefanou, \{Spiro E.\}",

note = "Teresa Serra is a research fellow, Centre de Recerca en Economia i Desenvolupament Agroalimentari, Spain. Alfons Oude Lansink is a professor, Wageningen University (The Netherlands). Spiro E. Stefanou is a professor, Pennsylvania State University and Wageningen University (The Netherlands). Authors gratefully acknowledge financial support from the European Commission{\textquoteright}s VI EU Framework Program, Proposal/Contract no: 044283, Food Industry Dynamics and Methodological Advances (FoodIMA).",

year = "2011",

month = apr,

doi = "10.1093/ajae/aaq175",

language = "English (US)",

volume = "93",

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publisher = "John Wiley \& Sons, Ltd.",

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AU - Stefanou, Spiro E.

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PY - 2011/4

Y1 - 2011/4

N2 - This research proposes a parametric estimation of the structural dynamic efficiency measures proposed in 2009 by Silva and Oude Lansink. Overall, technical and allocative efficiency measurements are derived based on a directional distance function and the duality between this function and the optimal value function. The applicability of the parametric proposal is illustrated by assessing dynamic efficiency ratings for a sample of Dutch dairy farms observed from 1995 to 2005. Dynamic efficiency ratings indicate the possibility to achieve long-run cost savings on the order of 12 that are mainly to be accomplished through a reduction in input use.

AB - This research proposes a parametric estimation of the structural dynamic efficiency measures proposed in 2009 by Silva and Oude Lansink. Overall, technical and allocative efficiency measurements are derived based on a directional distance function and the duality between this function and the optimal value function. The applicability of the parametric proposal is illustrated by assessing dynamic efficiency ratings for a sample of Dutch dairy farms observed from 1995 to 2005. Dynamic efficiency ratings indicate the possibility to achieve long-run cost savings on the order of 12 that are mainly to be accomplished through a reduction in input use.

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KW - dynamic efficiency

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ER -

Measurement of dynamic efficiency: A directional distance function parametric approach

Abstract

Keywords

ASJC Scopus subject areas

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