Non-Parametric Measures of Technical Efficiency in Milk Production
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This paper presents estimates of technical
efficiency in milk production based on Farrell's
non-parametric frontier production function methodology. Data from a sample of Maine and Vermont
dairy farms, included in the ELFAC business analysis
for 1979, were used to derive Efficient Unit
Isoquants for capital-labor and concentrate feed-roughage
combinations. The analysis indicates
that milk production in Maine and Vermont farms
was characterized b{ significant technical inefficiencies
during 1979.