Profit Efficiency in Norwegian Timber Supply: A Stochastic Frontier Function for Active NIPFs

Author

Sjur Baardsen

Scandinavian Forest Economics: Proceedings of the Biennial Meeting of the Scandinavian Society of Forest Economics, 8-11, issue 41

Abstract: The primary objective of the paper was to analyse how marginalisation affects profit efficiency, a secondary to identify and analyse some other possible inefficiency factors. In order to do this we estimated a translog restricted profit frontier function with an integrated inefficiency module. An unbalanced panel of 2161 observations of active Norwegian forest owners over the years 1991-2004 was used. The more marginal forestry income becomes the forest owner. Efficiency differences are likely to be caused by different information levels. The average forest owner could potentially increase his profit by 7.7% by catching up with the front. We suggest lease contracts as a policy means to ensure efficient timber supply with requiring much attention from the forest owner.

Keywords: Agribusiness; International Development; Production Economics; forest ownership; efficiency; stochastic profit frontier (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://purl.umn.edu/198446 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:ags:ssfesf:198446

Access Statistics for this article

Scandinavian Forest Economics: Proceedings of the Biennial Meeting of the Scandinavian Society of Forest Economics is currently edited by May

More articles in Scandinavian Forest Economics: Proceedings of the Biennial Meeting of the Scandinavian Society of Forest Economics from  Scandinavian Society of Forest Economics Contact information at EDIRC.
Series data maintained by AgEcon Search (aesearch@umn.edu).

For further details log on website :
http://econpapers.repec.org/article/agsssfesf/198446.htm