ESTIMATING NON-CONCAVE METAFRONTIERS USING DATA ENVELOPE ANALYSIS

Gunnar Breustedt, Tammo Francksen and Uwe Latacz-Lohmann

No 7600, 47th Annual Conference, Weihenstephan, Germany, September 26-28, 2007 from German Association of Agricultural Economists (GEWISOLA)

Abstract: In this article we propose non-concave metafrontiers for estimating the inefficiency among production functions which do not necessarily belong to the same technology. In this case, estimating a joint production by literature approaches might be inappropriate. We call this inefficiency technological inefficiency and suggest Data Envelopment Analysis to construct a metafrontier production function which consists only of parts of different (group) frontier production functions. Thus, in contrast to the common literature our metafrontier does not need any assumptions additional to the group production functions. We illustrate our approach by means of a large sample of differently diversified crop farms. Results show that the literature approach overestimates the technological inefficiency in our sample for 75% of the observations and on average up to 7%-points in a diversification class of farms.

Keywords: Production; Economics (search for similar items in EconPapers)
Pages: 12
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
https://ageconsearch.umn.edu/record/7600/files/cp07br04.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:gewi07:7600

DOI: 10.22004/ag.econ.7600

Access Statistics for this paper

More papers in 47th Annual Conference, Weihenstephan, Germany, September 26-28, 2007 from German Association of Agricultural Economists (GEWISOLA) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().