Efficiency and Economic Performance: An Application of the MIMIC Model

Timothy Richards, Scott R. Jeffrey

Research output: Contribution to journalArticlepeer-review

8 Scopus citations


Using measures of allocative, technical, and overall efficiency as indicators of a latent "performance" variable, and a set of farm operating ratios as indicators of the amount of effort to improve the quality of feeding, breeding, and labor productivity, we employ a multiple-indicator, multiple-cause (MIMIC) model of Alberta dairy production to determine the factors that contribute to economic performance. Gains in performance may be made through increased milk yield, herd size, breeding-program quality, and labor quality, but not by operator experience or increased expenditures on feeding programs. Consequently, the industry trend toward larger dairy herds may indeed improve the economic performance of dairy operators.

Original languageEnglish (US)
Pages (from-to)232-251
Number of pages20
JournalJournal of Agricultural and Resource Economics
Issue number1
StatePublished - Jul 1 2000


  • Alberta
  • Dairy
  • Efficiency
  • MIMIC model
  • Production frontier

ASJC Scopus subject areas

  • Animal Science and Zoology
  • Agronomy and Crop Science
  • Economics and Econometrics


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