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This paper presents estimates of technical efficiency in milk production based on Farrell's non-parametric frontier production function methodology. Data from a sample of Maine and Vermont dairy farms, included in the ELFAC business analysis for 1979, were used to derive Efficient Unit Isoquants for capital-labor and concentrate feed-roughage combinations. The analysis indicates that milk production in Maine and Vermont farms was characterized by significant technical inefficiencies during 1979.
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Boris E. Bravo‐Ureta (1983) studied this question.
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