Rationalising inefficiency in agricultural production - the case of Swedish dairy agriculture
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Rationalising inefficiency in agricultural production - the case of Swedish dairy agriculture. / Hansson, Helena; Manevska-Tasevska, Gordana; Asmild, Mette.
In: European Review of Agricultural Economics, Vol. 47, No. 1, 2020, p. 1-24.Research output: Contribution to journal › Journal article › Research › peer-review
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TY - JOUR
T1 - Rationalising inefficiency in agricultural production - the case of Swedish dairy agriculture
AU - Hansson, Helena
AU - Manevska-Tasevska, Gordana
AU - Asmild, Mette
PY - 2020
Y1 - 2020
N2 - Inefficiency in agricultural production is generally interpreted as waste in the use of production factors. We challenge this by (i) providing an explanation for why apparent inefficiency may result, at least partly, from rational production decisions by farmers and (ii) testing this rational inefficiency hypothesis empirically. Based on multidirectional efficiency analysis of production data from 2013 for 421 Swedish dairy farms and statistical analyses of the inefficiency patterns, we provide support for the existence of rational inefficiency. These findings have clear implications for policy schemes aiming at pushing farms towards the efficient production frontier.
AB - Inefficiency in agricultural production is generally interpreted as waste in the use of production factors. We challenge this by (i) providing an explanation for why apparent inefficiency may result, at least partly, from rational production decisions by farmers and (ii) testing this rational inefficiency hypothesis empirically. Based on multidirectional efficiency analysis of production data from 2013 for 421 Swedish dairy farms and statistical analyses of the inefficiency patterns, we provide support for the existence of rational inefficiency. These findings have clear implications for policy schemes aiming at pushing farms towards the efficient production frontier.
KW - dairy farms
KW - multidirectional efficiency analysis (MEA)
KW - non-use values
KW - rational inefficiency
KW - use values
U2 - 10.1093/erae/jby042
DO - 10.1093/erae/jby042
M3 - Journal article
AN - SCOPUS:85085029966
VL - 47
SP - 1
EP - 24
JO - European Review of Agricultural Economics
JF - European Review of Agricultural Economics
SN - 0165-1587
IS - 1
ER -
ID: 261495189