A comparison of production technology using primal and dual approaches: The case of Dutch dairy farms

Two models of profit-maximising farms are developed using the duality that exists between the normalised profit function and the production function. Some production factors are fixed in the short term. The specification used is the translog form with variable intercepts. The equations are estimated with an incomplete panel using a SUR and 3SLS estimation method. The theoretical framework fits the data well. Assumptions often made about the production technology are tested. Linear homogeneity and Hicks' neutrality are rejected by both models. The production and substitution elasticities calcul... Mehr ...