Working Paper Series
Finn R. Førsund and Lennart Hjalmarsson
Frontier Production Functions and Technical Progress: A Study of Teneral Milk Processing in Swedish Dairy Plants
Abstract: Technical change in general milk processing is estimated
within a homothetic frontier production function allowing neutrally
variable scale elasticity. The results show that technical progress is
characterized by a rapid increase in optimal scale and a small capital
saving bias, increasing the marginal productivity of labour relative to
capital. To characterize technical change, Salter's measures of bias and
technical advance are utilized and interpreted within the framework of the
efficiency cancepts of Farrell.
Keywords: Agriculture; Technical progress; Production function; (follow links to similar papers)
JEL-Codes: O13; Q16; (follow links to similar papers)
30 pages, December 1977
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