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European Review of Agriculture Economics Vol 26 (1) (1999) pp.101-115
© 1999 Oxford University Press and the Foundation for the European Review of Agricultural Economics

Generalised maximum entropy estimation and heterogeneous technologies

AO Lansink

Environmental Economics Group, Wageningen Agricultural University, Hollandseweg 1, 6706 KN Wageningen, The Netherlands
e-mail: alfons.oudelansink:algshhk.wau.nl

Summary

Generalised maximum entropy methods are used to estimate a dual model of production on panel data of Dutch cash crop farms over the period 1970-1992. The generalised maximum entropy approach allows a coherent system of input demand and output supply equations to be estimated for each farm in the sample, thus capturing technological heterogeneity. The estimation results are used to perform a cluster analysis to identify groups of farms with similar technologies.

Keywords:heterogeneous technologies, generalised maximum entropy, panel data, duality


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