Iain Fraser

An application of data envelopment analysis to irrigated dairy farms in Northern Victoria, Australia

Abstract In this paper, data envelopment analysis (DEA) is used to assess the technical efficiency of a sample of irrigated dairy farms in Northern Victoria, Australia. It is proposed that DEA is a useful tool in helping to benchmark the dairy industry, which is continually striving to improve its productive efficiency. DEA takes a systems approach in that it takes account of the relationship between all inputs and outputs simultaneously. DEA yields a more consistent measure of efficiency than the more frequently reported partial indicators of farm efficiency. In addition, DEA yields a relative measure of efficiency and it identifies those inputs and/or outputs that are being under-utilised. From an extension perspective this is extremely useful information as it can assist in identifying industry best-practice. ©

An application of maximum entropy estimation: the demand for meat in the United Kingdom

In many econometric studies of demand relationships the design matrix is frequently subject to severe collinearity. In this paper the Generalized Maximum Entropy methodology is introduced and used to estimate a set of demand relationships. The ability of Generalized Maximum Entropy to estimate economic relationships that are typically subject to a high degree of collinearity among the explanatory variables, thus potentially causing traditional methods of estimation to be unreliable, is explained. The results derived by this alternative method of estimation, for a UK meat demand data set, are analysed and examined. The potential for this emerging estimation methodology is discussed.

An application of the DEA double bootstrap to examine sources of efficiency in Bangladesh rice farming

In this article we examine sources of technical efficiency for rice farming in Bangladesh. The motivation for the analysis is the need to close the rice yield gap to enable food security. We employ the DEA double bootstrap of Simar and Wilson (2007) to estimate and explain technical efficiency. This technique overcomes severe limitations inherent in using the two-stage DEA approach commonly employed in the efficiency literature. From a policy perspective our results show that potential efficiency gains to reduce the yield gap are greater than previously found. Statistically positive influences on technical efficiency are education, extension and credit, with age being a negative influence.

Estimating technical efficiency of Australian dairy farms using alternative frontier methodologies

Technical efficiency is estimated and examined for a cross-section of Australian dairy farms using various frontier methodologies; Bayesian and Classical stochastic frontiers, and Data Envelopment Analysis. The results indicate technical inefficiency is present in the sample data. Also identified are statistical differences between the point estimates of technical efficiency generated by the various methodologies. However, the rank of farm level technical efficiency is statistically invariant to the estimation technique employed. Finally, when confidence/credible intervals of technical efficiency are compared significant overlap is found for many of the farms’ intervals for all frontier methods employed. The results indicate that the choice of estimation methodology may matter, but the explanatory power of all frontier methods is significantly weaker when interval estimate of technical efficiency is examined.

Making ecological science policy-relevant: issues of scale and disciplinary integration

In this paper, we ask why so much ecological scientific research does not have a greater policy impact in the UK. We argue that there are two potentially important and related reasons for this failing. First, much current ecological science is not being conducted at a scale that is readily meaningful to policy-makers. Second, to make much of this research policy-relevant requires collaborative interdisciplinary research between ecologists and social scientists. However, the challenge of undertaking useful interdisciplinary research only re-emphasises the problems of scale: ecologists and social scientists traditionally frame their research questions at different scales and consider different facets of natural resource management, setting different objectives and using different language. We argue that if applied ecological research is to have greater impact in informing environmental policy, much greater attention needs to be given to the scale of the research efforts as well as to the interaction with social scientists. Such an approach requires an adjustment in existing research and funding infrastructures.

Demand Estimation in the Presence of Stochastic Trend and Seasonality: The Case of Meat Demand in the United Kingdom

If budget shares have stochastic trend or seasonality or both, then demand equations based on the assumption of deterministic trend and deterministic seasonality will be mis-specified. We test this proposition by estimating a Linearized Almost Ideal (LAI) demand system for meat demand in the United Kingdom using Harveys structural time series methodology. We demonstrate that the model specification allowing for stochastic trend and deterministic seasonality performs best in terms of diagnostic tests and goodness of fit measures. It is also shown that the model with stochastic trend is better at out-of-sample forecasting. Copyright 2002, Oxford University Press.

Integrated pest management portfolios in UK arable farming: results of a farmer survey.

BACKGROUND Farmers are faced with a wide range of pest management (PM) options that can be adopted in isolation or alongside complementary or substitute strategies. This paper presents the results of a survey of UK cereal producers, focusing on the character and diversity of PM strategies currently used by, or available to, farmers. In addition, the survey asked various questions pertaining to agricultural policy participation, attitude towards environmental issues, sources of PM advice and information and the important characteristics of PM technologies. RESULTS The results indicate that many farmers do make use of a suite of PM techniques, and that their choice of integrated PM (IPM) portfolio appears to be jointly dictated by farm characteristics and government policy. Results also indicate that portfolio choice does affect the number of subsequent insecticide applications per crop. CONCLUSIONS These results help to identify the type of IPM portfolios considered to be adoptable by farmers and highlight the importance of substitution in IPM portfolios. As such, these results will help to direct R&D effort towards the realisation of more sustainable PM approaches and aid the identification of potential portfolio adopters. These findings highlight the opportunity that a revised agri-environmental policy design could generate in terms of enhancing coherent IPM portfolio adoption.

The economics of household waste management: a review

In recent years reducing the amount of waste generated by households has become an important policy issue in industrialised economies. It is no longer acceptable to discard waste without concern for environmental and natural resource issues. In an effort to reduce household waste various policy instruments such as kerbside charges, deposit‐refund schemes, integrated sales tax exemptions and virgin material taxes, have been proposed and/or implemented. This article reviews the economics literature that has addressed household waste management. It is argued that a comprehensive modelling framework is necessary if the complex policy environment is to be accurately described.

Natural Resource Accounting in Theory and Practice: A Critical Assessment

In this paper an extensive review of the theoretical and applied literature on NRA is provided. The review begins by explaining the economic theory that underpins NRA, contrasting welfare and sustainability as policy goals, and presenting various distinct conceptions of national income. The state of play regarding official revisions to the system of national accounts (SNA) with respect to natural resources and the environment is presented and controversial areas are highlighted. Finally, the economic literature on proposed revisions, and applied studies that have proceeded using these methods, is summarised and critiqued. We argue that much of the literature proceeds with weak conceptual foundations, and that typical case studies produce results that are ambiguous in interpretation. Moreover, we highlight fundamental tensions between economic theory and national accounting methodology, and conclude that one outcome of this has been insufficient attention paid by economists to the revisions to the SNA, instead devoting time and effort to “freelance” NRA case studies utilising sometimes ad hoc methods from the economic literature.

Farm-level efficiency and productivity measurement using panel data: wool production in south-west Victoria

In this article we explore some issues surrounding the use of farm-level efficiency and productivity estimates for benchmarking studies. Using an eight-year balanced panel of Victorian wool producers we analyse annual variation between estimates of farm-level technical efficiency derived using Data Envelopment Analysis and Malmquist estimates of Total Factor Productivity. We find that farms change their relative rank in terms of efficiency across years. Also, unlike aggregate studies of Total Factor Productivity, we find at best erratic and modest growth, a worrying result for this industry. However, caution is needed when interpreting these results, and for that matter, benchmarking analysis as currently practised when using frontier estimation techniques like Data Envelopment Analysis.