Lecture 27-2005 - Applications in Production Economics Lecture XXVII Akridge Jay T Measuring Productive Efficiency in Multiple Product Agribusiness

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
Applications in Production Economics Lecture XXVII
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Akridge, Jay T. “Measuring Productive Efficiency in Multiple Product Agribusiness Firms: A Dual Approach.” American Journal of Agricultural Economics 71(1)(Feb. 1989): 116–25.
Background image of page 2
The purpose of this article is to determine how effectively a sample of retail multiproduct agribusinesses achieve an objective cost minimization.” “In particular, the frontier multiproduct cost function, which reflects the minimum cost of producing any given output vector as defined by the sample’s least-cost firms, provides the benchmark to make valid cost comparisons in multiple product firms.”
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
“The frontier cost function can be used to compare the observed cost of any sample firm against the cost which the sample’s least-cost producers would incur if producing an identical output vector and provides the basis for computing Farrell-type indexes of productive, technical, and allocative efficiency.
Background image of page 4
Measuring Productive Efficiency Let C R ( Y,W,K ) be the total variable costs of producing output vector Y using input vector X R , where W is a vector of variable input prices and K is a vector of quasi-fixed factors of production X R is the vector of inputs actually used.
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 07/15/2011 for the course AEB 6184 taught by Professor Staff during the Fall '09 term at University of Florida.

Page1 / 24

Lecture 27-2005 - Applications in Production Economics Lecture XXVII Akridge Jay T Measuring Productive Efficiency in Multiple Product Agribusiness

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online