Reducing non-allocative costs on Danish dairy farms: application of non-parametric methods
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Reducing non-allocative costs on Danish dairy farms : application of non-parametric methods. / Lund, Mogens; Jacobsen, Brian H.; Hansen, Lars C.E.
In: European Review of Agricultural Economics, Vol. 20, No. 3, 1993, p. 327-341.Research output: Contribution to journal › Journal article › Research › peer-review
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TY - JOUR
T1 - Reducing non-allocative costs on Danish dairy farms
T2 - application of non-parametric methods
AU - Lund, Mogens
AU - Jacobsen, Brian H.
AU - Hansen, Lars C.E.
PY - 1993
Y1 - 1993
N2 - Non-allocative costs for 248 Danish dairy farms are evaluated against the ‘best management practice’ using Farrell-type efficiency ratings. The average potential cost saving is estimated to 134, 800 kr., or 19% of the total non-allocative costs per dairy farm. The findings suggest that pure cost inefficiencies are far more important for dairy farms than inefficiencies due to sub-optimal farm size. Non-proportional reductions are shown to be as important as reductions due to scale economies. The paper closes with a discussion of the implications for farm policy and management practice.
AB - Non-allocative costs for 248 Danish dairy farms are evaluated against the ‘best management practice’ using Farrell-type efficiency ratings. The average potential cost saving is estimated to 134, 800 kr., or 19% of the total non-allocative costs per dairy farm. The findings suggest that pure cost inefficiencies are far more important for dairy farms than inefficiencies due to sub-optimal farm size. Non-proportional reductions are shown to be as important as reductions due to scale economies. The paper closes with a discussion of the implications for farm policy and management practice.
KW - EFFICIENCY
KW - NONPARAMETRIC METHODS
KW - NON-ALLOCATIVE COSTS
KW - FIXED COSTS
KW - DAIRY FARMS
U2 - 10.1093/erae/20.3.327
DO - 10.1093/erae/20.3.327
M3 - Journal article
VL - 20
SP - 327
EP - 341
JO - European Review of Agricultural Economics
JF - European Review of Agricultural Economics
SN - 0165-1587
IS - 3
ER -
ID: 129744463