A stochastic dual model of investment under uncertainty is used to investigate structural adjustment in the Finnish hog industry. Value function restrictions are found to be comparable to those in existing dual models assuming deterministic state variables. The model also allows for an asymmetry...

In corporate finance, the impact of capital structure on firm performance has been widely studied. This article extends the capital structure study to the situation in agriculture, explicitly addressing the difference between family farms and corporate firms. We use the Malmquist productivity...

Profitability of Dutch greenhouse firms is largely dependent on energy costs, and policy makers focus on reducing the use of energy by these firms. This article uses Russell measures of TE to develop indicators of energy productivity growth. Results show that energy productivity grew by 2.8%...

This article presents a general conceptual framework for integrating agronomic principles into economic production analysis. We categorize inputs in crop production into growth inputs and facilitating inputs. Based on this dichotomy we specify an asymmetric production function. The robustness of...

We introduce the concept “excess capital capacity” and employ a stochastic input requirement frontier to measure excess capital capacity in agricultural production. We also propose a two-step estimation method that allows endogenous regressors in stochastic frontier models. The first step...

In corporate finance, the impact of capital structure on firm performance has been widely studied. This article extends the capital structure study to the situation in agriculture, explicitly addressing the difference between family farms and corporate firms. We use the Malmquist productivity...

Profitability of Dutch greenhouse firms is largely dependent on energy costs, and policy makers focus on reducing the use of energy by these firms. This article uses Russell measures of TE to develop indicators of energy productivity growth. Results show that energy productivity grew by 2.8%...

This study provides a framework for consistent estimation of a dynamic dual model of investment for the case where data reveal zero and nonzero investments. The threshold model that is developed maintains that investments are zero if the shadow value of machinery is between a lower and an upper...

This research proposes a parametric estimation of the structural dynamic efficiency measures proposed in 2009 by Silva and Oude Lansink. Overall, technical and allocative efficiency measurements are derived based on a directional distance function and the duality between this function and the...

The stochastic distance function model is extended to allow for the inefficiency component of the error term to be autocorrelated, as implied by a dynamic model of firm behavior. The autocorrelation parameter can then be interpreted as a measure of the persistence of inefficiency. The model is...