Addisu Adamie, Birhanu and Hansson, Helena
(2022).
Rationalising inefficiency in dairy production: evidence from an over-time approach.
European Review of Agricultural Economics. 49
:2
, 433-471
[Research article]
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Abstract
We argue that inefficiency can be part of a strategic self-repositioning adjustment process beyond the general interpretation of poor performance. Based on the rational inefficiency hypothesis, we examine the simultaneous dynamics of efficiency and animal welfare improving investments over time in dairy farms. Using rotating panel data from Swedish dairy farms and implementing multidirectional efficiency analysis and Markov transitional dynamic analysis, the paper provides evidence that for some farms inefficiency is temporary and part of rational decision along their trajectory towards multi-efficiency (high efficiency-high animal welfare). The findings show the importance of time dynamics in efficiency achievements with implications to cross-sectional view.
| Authors/Creators: | Addisu Adamie, Birhanu and Hansson, Helena | ||||
|---|---|---|---|---|---|
| Title: | Rationalising inefficiency in dairy production: evidence from an over-time approach | ||||
| Series Name/Journal: | European Review of Agricultural Economics | ||||
| Year of publishing : | 2022 | ||||
| Volume: | 49 | ||||
| Number: | 2 | ||||
| Page range: | 433-471 | ||||
| Number of Pages: | 39 | ||||
| ISSN: | 0165-1587 | ||||
| Language: | English | ||||
| Publication Type: | Research article | ||||
| Article category: | Scientific peer reviewed | ||||
| Version: | Published version | ||||
| Copyright: | Creative Commons: Attribution 4.0 | ||||
| Full Text Status: | Public | ||||
| Subjects: | (A) Swedish standard research categories 2011 > 5 Social Sciences > 502 Economics and Business > Economics | ||||
| Keywords: | rational inefficiency, Markov transitional dynamics, dairy farming, multidirectional efficiency analysis | ||||
| URN:NBN: | urn:nbn:se:slu:epsilon-p-111251 | ||||
| Permanent URL: | http://urn.kb.se/resolve?urn=urn:nbn:se:slu:epsilon-p-111251 | ||||
| Additional ID: |
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| ID Code: | 27730 | ||||
| Faculty: | NJ - Fakulteten för naturresurser och jordbruksvetenskap | ||||
| Department: | (NL, NJ) > Dept. of Economics | ||||
| Deposited By: | SLUpub Connector | ||||
| Deposited On: | 06 May 2022 12:25 | ||||
| Metadata Last Modified: | 06 May 2022 12:31 |
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