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© 1996 Oxford University Press and the Foundation for the European Review of Agricultural Economics

research-article

Efficiency analysis with panel data: A study of Portuguese dairy farms

DAVID HALLAM and FERNANDO MACHADO

Dept. of Agricultural Economics and Management, The University of Reading 4 Earley Gate, Whiteknights Road, Reading RG6 6AR, UK
Universidade Catolica Portuguesa Lisbon, Portugal

Received September 1, 1995;

Summary

The technical efficiency of Portuguese dairy farms is measured using frontier production functions estimated from panel data. Alternative estimators are compared and evaluated. The results suggest an average efficiency of 60 to 70 per cent. The relationship between efficiency and farm characteristics is explored. Efficiency appears to be positively correlated with farm size, but independent of degree of specialisation. The implications of the results for alternative development strategies are considered.

Keywords: efficiency, panel data, milk, Portugal


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