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Decomposition of Total Factor Productivity Change in the U.S. Hog Industry

Published online by Cambridge University Press:  26 January 2015

Nigel Key ,
William McBride  and
Roberto Mosheim
Nigel Key
Affiliation:
Economic Research Service in the U.S. Department of Agriculture, Washington, DC
William McBride
Affiliation:
Economic Research Service in the U.S. Department of Agriculture, Washington, DC
Roberto Mosheim
Affiliation:
Economic Research Service in the U.S. Department of Agriculture, Washington, DC
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Abstract

The U.S. hog industry has experienced dramatic structural changes and rapid increases in farm productivity. A stochastic frontier analysis is used to measure hog enterprise total factor productivity (TFP) growth between 1992 and 2004 and to decompose this growth into technical change and changes in technical efficiency, scale efficiency, and allocative efficiency. Productivity gains over the 12-year period are found to be explained almost entirely by technical progress and by improvements in scale efficiency. Differences in TFP growth rates in the Southeast and Heartland regions were found to be explained primarily by differences in farm size growth rates.

Keywords

hog productionscale efficiencystochastic frontiertechnical changetotal factor productivity growthD24Q12
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 40 , Issue 1 , April 2007 , pp. 137 - 149
Copyright
Copyright © Southern Agricultural Economics Association 2008

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