A. Heshmati et al., EFFICIENCY OF THE SWEDISH PORK INDUSTRY - A FARM-LEVEL STUDY USING ROTATING PANEL-DATA 1976-1988, European journal of operational research, 80(3), 1995, pp. 519-533
Citations number
15
Categorie Soggetti
Management,"Operatione Research & Management Science
This paper investigates the issues of technical efficiency, technical
changes and bias in technical change in the Swedish pork industry usin
g rotating panel data. We use a generalized Cobb-Douglas model, where
the coefficients are linear functions of time. This allows input elast
icities to vary over time. Technical changes and bias in technical cha
nge are farm- and time-specific. The model distinguishes farm heteroge
neity from technical inefficiency. We use a corrected least squares pr
ocedure to estimate the model. The data consists of a rotating panel o
f 450 pork producing farms with a total number of 1506 observations du
ring the period of 1976-1988. We compare the productive performance of
farms by size of farm land and animal stock, and over time. The empir
ical results show among other things that technical change is found to
be positive but rapidly declining during the period 1976-1980 turning
into technical regress during the remaining period, 1981 to 1988. The
mean technical efficiency is found to be around 91%.