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Decomposition of productivity growth using distance functions: the case of dairy farms in three European countries


Decomposition of productivity growth using distance functions: the case of dairy farms in three European countries



American Journal of Agricultural Economics 84(3): 628-644



ISSN/ISBN: 0002-9092

DOI: 10.1111/1467-8276.00324

Within an output distance function framework, the Total Factor Productivity growth index is decomposed into four components (technical change, technical and allocative efficiency, and scale component). We estimate stochastic translog output distance functions using panel data from dairy farms over the period 1991-94 for three European countries (Germany, the Netherlands, and Poland). Results indicate that the change in the productivity growth index in Germany (+6%) and Poland (-5%) are mainly dictated by the technical change component. In contrast, the productivity growth index in the Netherlands (+3%) is influenced by allocative efficiency components. Reprinted by permission of the publisher.

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Accession: 003701429

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