Efficiency and Economic Performance: An Application of the MIMIC Model

Timothy Richards, Scott R. Jeffrey

Research output: Contribution to journalArticle

7 Citations (Scopus)

Abstract

Using measures of allocative, technical, and overall efficiency as indicators of a latent "performance" variable, and a set of farm operating ratios as indicators of the amount of effort to improve the quality of feeding, breeding, and labor productivity, we employ a multiple-indicator, multiple-cause (MIMIC) model of Alberta dairy production to determine the factors that contribute to economic performance. Gains in performance may be made through increased milk yield, herd size, breeding-program quality, and labor quality, but not by operator experience or increased expenditures on feeding programs. Consequently, the industry trend toward larger dairy herds may indeed improve the economic performance of dairy operators.

Original languageEnglish (US)
Pages (from-to)232-251
Number of pages20
JournalJournal of Agricultural and Resource Economics
Volume25
Issue number1
StatePublished - Jul 2000

Fingerprint

economic performance
operator regions
industry trends
labor productivity
herd size
breeding
Alberta
economics
dairy herds
milk yield
milk production
dairies
labor
farms
milk
expenditure
farm
industry
indicator
Economic performance

Keywords

  • Alberta
  • Dairy
  • Efficiency
  • MIMIC model
  • Production frontier

ASJC Scopus subject areas

  • Aquatic Science

Cite this

Efficiency and Economic Performance : An Application of the MIMIC Model. / Richards, Timothy; Jeffrey, Scott R.

In: Journal of Agricultural and Resource Economics, Vol. 25, No. 1, 07.2000, p. 232-251.

Research output: Contribution to journalArticle

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