Generalised maximum entropy estimation and heterogeneous technologies

Author: Lansink, AO

Source: European Review of Agricultural Economics, Volume 26, Number 1, March 1999 , pp. 101-115(15)

Publisher: Oxford University Press

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Abstract:

Generalised maximum entropy methods are used to estimate a dual model of production on panel data of Dutch cash crop farms over the period 1970-1992. The generalised maximum entropy approach allows a coherent system of input demand and output supply equations to be estimated for each farm in the sample, thus capturing technological heterogeneity. The estimation results are used to perform a cluster analysis to identify groups of farms with similar technologies.

Keywords:heterogeneous technologies, generalised maximum entropy, panel data, duality

Document Type: Research article

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