#9922. Changes in the productive efficiency of U.S. flour mills in the late nineteenth century: an input-distance-function approach

September 2026publication date
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Social Sciences (miscellaneous);
Economics and Econometrics;
Business and International Management;
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Abstract:
The productive efficiency of the U.S. flour milling industry increased substantially between 1850 and 1880. Specifically, a typical flour mill in 1880 was able to produce the same value of output as a mill in 1850 with 25 percent fewer factor inputs. We use the concept of the cone technology, combined with an input-distance-function approach, to decompose this increase in productive efficiency into changes in technical efficiency, technological progress, and changes in scale efficiency, assuming unchanged allocative efficiency in combining inputs.
Keywords:
Flour Milling; Industrial Revolution; Input-Distance Function; Productive Efficiency; Scale Efficiency; Technical Efficiency

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