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Explaining Output Growth with a Heteroscedastic Non-neutral Production Frontier: The Case of Sheep Farms in Greece

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  • Giannis Karagiannis
  • Vangelis Tzouvelekas

    (Department of Economics, University of Crete, Greece)

Abstract
This paper extends the primal decomposition of total factor productivity (TFP) changes to the case of non-neutral production frontiers. Output growth is decomposed into input growth (size effect), changes in technical efficiency, technical change, and the effect of returns to scale. Within the proposed formulation, however, technical efficiency changes are attributed not only to autonomous changes (i.e. passage of time) but also to changes in input use and in farm-specific characteristics. A heteroscedastic non-neutral production frontier is estimated for an unbalanced panel of Greek sheep farms for the period 1989--1992. Technical efficiency change is found to be the main source of TFP growth. The farm-specific characteristics were the most important determinant of technical efficiency changes. Copyright 2005, Oxford University Press.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Giannis Karagiannis & Vangelis Tzouvelekas, 2004. "Explaining Output Growth with a Heteroscedastic Non-neutral Production Frontier: The Case of Sheep Farms in Greece," Working Papers 0409, University of Crete, Department of Economics.
    • Handle: RePEc:crt:wpaper:0409
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    References listed on IDEAS

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    3. Kellermann, Magnus A., 2015. "Total Factor Productivity Decomposition and Unobserved Heterogeneity in Stochastic Frontier Models," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 44(1), pages 1-25, April.
    4. Madau, Fabio A., 2012. "Technical and scale efficiency in the Italian Citrus Farming: A comparison between Stochastic Frontier Analysis (SFA) and Data Envelopment Analysis(DEA) Models," MPRA Paper 41403, University Library of Munich, Germany.
    5. Serra, Teresa & Zilberman, David & Gil, Jose Maria, 2008. "Farms' technical inefficiencies in the presence of government programs," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(1), pages 1-20.
    6. K Hervé Dakpo & Philippe Jeanneaux & Laure Latruffe, 2014. "Inclusion of undesirable outputs in production technology modeling:The case of greenhouse gas emissions in French meat sheep farming," Working Papers SMART 14-08, INRAE UMR SMART.
    7. Basurto Hernandez, Saul & Maddison, David & Banerjee, Anindya, 2018. "The effect of PROCAMPO on farms’ technical efficiency: A Stochastic Frontier Analysis," 2018 Annual Meeting, August 5-7, Washington, D.C. 274376, Agricultural and Applied Economics Association.
    8. Hidalgo González, Cristina & Rodríguez Fernández,Mª Pilar, 2018. "Total factor productivity and its components for sheep and goat farms in 37 Southern European regions (2004-2012)," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 17(02), January.
    9. Roberto Furesi & Fabio Madau & Pietro Pulina, 2013. "Technical efficiency in the sheep dairy industry: an application on the Sardinian (Italy) sector," Demography, Springer;Population Association of America (PAA), vol. 1(1), pages 1-11, December.
    10. Madau, Fabio A., 2011. "Parametric Estimation of Technical and Scale Efficiencies in Italian Citrus Farming," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 12(1).
    11. Minviel, Jean Joseph & Latruffe, Laure, 2014. "Meta-regression analysis of the impact of agricultural subsidies on farm technical efficiency," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182767, European Association of Agricultural Economists.
    12. Dakpo, K & Jeanneaux, Philippe & Latruffee, Laure, 2015. "Empirical comparison of pollution generating technologies in nonparametric modelling: The case of greenhouse gas emissions in French sheep meat farming," 2015 Conference, August 9-14, 2015, Milan, Italy 211557, International Association of Agricultural Economists.
    13. Lokina, Razack B., 2008. "Technical Efficiency and the Role of Skipper Skill in Artisanal Lake Victoria Fisheries," RFF Working Paper Series dp-08-13-efd, Resources for the Future.
    14. Ioannis Skevas & Grigorios Emvalomatis & Bernhard Brümmer, 2018. "The effect of farm characteristics on the persistence of technical inefficiency: a case study in German dairy farming," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 45(1), pages 3-25.
    15. Koiry, Subrata & Huang, Wei, 2023. "Do ecological protection approaches affect total factor productivity change of cropland production in Sweden?," Ecological Economics, Elsevier, vol. 209(C).
    16. Saldias, Rodrigo & von Cramon-Taubadel, Stephan, 2012. "Access to credit and the determinants of technical inefficiency among specialized small farmers in Chile," DARE Discussion Papers 1211, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).

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    More about this item

    Keywords

    primal approach; scale effect; TFP decomposition; stochastic frontier model;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services

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