IDEAS home Printed from https://ideas.repec.org/a/ags/aergaa/26408.html
   My bibliography  Save this article

The influence of management accounting use on farm inefficiency

Author

Listed:
  • Puig-Junoy, Jaume
  • Argiles, Josep M.

Abstract

This paper aims to estimate a translog stochastic frontier production function with panel data of 147 mixed Catalan farms in a five-year period. The mean output efficiency in the period analysed was estimated to be 62.3%. We added management variables to the traditional factors explaining farm efficiency, and found that fully integrated management based on reliable accounting information and comprising planning and control phases reveals to be a significant factor positively affecting farm efficiency. Farm efficiency levels were also found to be positively influenced by farm size, while rented and irrigated area influence negatively farm efficiency levels.

Suggested Citation

  • Puig-Junoy, Jaume & Argiles, Josep M., 2004. "The influence of management accounting use on farm inefficiency," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 5(2), pages 1-20, August.
    • Handle: RePEc:ags:aergaa:26408
    DOI: 10.22004/ag.econ.26408
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/26408/files/05020047.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.26408?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ferrantino, Michael J. & Ferrier, Gary D., 1995. "The technical efficiency of vacuum-pan sugar industry of India: An application of a stochastic frontier production function using panel data," European Journal of Operational Research, Elsevier, vol. 80(3), pages 639-653, February.
    2. Coelli, Tim J., 1995. "Recent Developments In Frontier Modelling And Efficiency Measurement," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 39(3), pages 1-27, December.
    3. Coelli, Tim J. & Battese, George E., 1996. "Identification Of Factors Which Influence The Technical Inefficiency Of Indian Farmers," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 40(2), pages 1-26, August.
    4. Jean-Louis Brangeon & Guenhaël Jégouzo & Bernard Roze, 1994. "Les revenus agricoles négatifs," Économie rurale, Programme National Persée, vol. 224(1), pages 32-38.
    5. Bravo-Ureta, Boris E. & Pinheiro, António E., 1993. "Efficiency Analysis of Developing Country Agriculture: A Review of the Frontier Function Literature," Agricultural and Resource Economics Review, Cambridge University Press, vol. 22(1), pages 88-101, April.
    6. Allen, Douglas W & Lueck, Dean, 1998. "The Nature of the Farm," Journal of Law and Economics, University of Chicago Press, vol. 41(2), pages 343-386, October.
    7. Kumbhakar, Subal C. & Heshmati, Almas & Hjalmarsson, Lennart, 1997. "Temporal patterns of technical efficiency: Results from competing models," International Journal of Industrial Organization, Elsevier, vol. 15(5), pages 597-616, August.
    8. George E. Battese & Sohail J. Malik & Manzoor A. Gill, 1996. "An Investigation Of Technical Inefficiencies Of Production Of Wheat Farmers In Four Districts Of Pakistan," Journal of Agricultural Economics, Wiley Blackwell, vol. 47(1‐4), pages 37-49, January.
    9. Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 233-238, August.
    10. George Battese & Sumiter Broca, 1997. "Functional Forms of Stochastic Frontier Production Functions and Models for Technical Inefficiency Effects: A Comparative Study for Wheat Farmers in Pakistan," Journal of Productivity Analysis, Springer, vol. 8(4), pages 395-414, November.
    11. William C. Horrace & Peter Schmidt, 2002. "Confidence Statements for Efficiency Estimates from Stochastic Frontier Models," Econometrics 0206006, University Library of Munich, Germany.
    12. Jaume Puig‐Junoy, 2001. "Technical Inefficiency and Public Capital in U.S. States: A Stochastic Frontier Approach," Journal of Regional Science, Wiley Blackwell, vol. 41(1), pages 75-96, February.
    13. Carin W. Rougoor & Ger Trip & Ruud B.M. Huirnc & Jan A. Renkema, 1998. "How to define and study farmers' management capacity: theory and use in agricultural economics," Agricultural Economics, International Association of Agricultural Economists, vol. 18(3), pages 261-272, May.
    14. William F. Lazarus & Deborah Streeter & Eduardo Jofre-Giraudo, 1990. "Management Information Systems: Impact on Dairy Farm Profitability," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 12(2), pages 267-277.
    15. Tomaszewski, M. A. & van Asseldonk, M. A. P. M. & Dijkhuizen, A. A. & Huirne, R. B. M., 2000. "Determining farm effects attributable to the introduction and use of a dairy management information system in The Netherlands," Agricultural Economics, Blackwell, vol. 23(1), pages 79-86, June.
    16. Heshmati, Almas & Kumbhakar, Subal C. & Hjalmarsson, Lennart, 1995. "Efficiency of the Swedish pork industry: A farm level study using rotating panel data 1976-1988," European Journal of Operational Research, Elsevier, vol. 80(3), pages 519-533, February.
    17. Boris E. Bravo-Ureta & Laszlo Rieger, 1991. "Dairy Farm Efficiency Measurement Using Stochastic Frontiers and Neoclassical Duality," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(2), pages 421-428.
    18. Battese, George E. & Coelli, Tim J., 1988. "Prediction of firm-level technical efficiencies with a generalized frontier production function and panel data," Journal of Econometrics, Elsevier, vol. 38(3), pages 387-399, July.
    19. Bernhard Brümmer, 2001. "Estimating confidence intervals for technical efficiency: the case of private farms in slovenia," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 28(3), pages 285-306, October.
    20. Yangseon Kim & Peter Schmidt, 2000. "A Review and Empirical Comparison of Bayesian and Classical Approaches to Inference on Efficiency Levels in Stochastic Frontier Models with Panel Data," Journal of Productivity Analysis, Springer, vol. 14(2), pages 91-118, September.
    21. Schmitt, Gunther, 1991. "Why Is the Agriculture of Advanced Western Economies Still Organized by Family Farms? Will This Continue to Be So in the Future?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 18(3-4), pages 443-458.
    22. Luther G. Tweeten, 1969. "Theories Explaining the Persistence of Low Resource Returns in a Growing Farm Economy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 51(4), pages 798-817.
    23. Kodde, David A & Palm, Franz C, 1986. "Wald Criteria for Jointly Testing Equality and Inequality Restriction s," Econometrica, Econometric Society, vol. 54(5), pages 1243-1248, September.
    24. Wilson, Paul & Hadley, David & Asby, Carol, 2001. "The influence of management characteristics on the technical efficiency of wheat farmers in eastern England," Agricultural Economics, Blackwell, vol. 24(3), pages 329-338, March.
    25. Battese, George E., 1992. "Frontier production functions and technical efficiency: a survey of empirical applications in agricultural economics," Agricultural Economics, Blackwell, vol. 7(3-4), pages 185-208, October.
    26. Thiam, Abdourahmane & Bravo-Ureta, Boris E. & Rivas, Teodoro E., 2001. "Technical efficiency in developing country agriculture: a meta-analysis," Agricultural Economics, Blackwell, vol. 25(2-3), pages 235-243, September.
    27. James J. Wadsworth & Boris E. Bravo-Ureta, 1992. "Financial performance of New England dairy farms," Agribusiness, John Wiley & Sons, Ltd., vol. 8(1), pages 47-56.
    28. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-332.
    29. William E. Foster & Gordon C. Rausser, 1991. "Farmer Behavior under Risk of Failure," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(2), pages 276-288.
    30. Rougoor, Carin W. & Trip, Ger & Huirne, Ruud B. M. & Renkema, Jan A., 1998. "How to define and study farmers' management capacity: theory and use in agricultural economics," Agricultural Economics, Blackwell, vol. 18(3), pages 261-272, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Manevska-Tasevska, Gordana & Hansson, Helena, 2010. "Influence of rural development policy targets on farm efficiency: An efficiency study of labour intensive grape growing family farms," IAMO Forum 2010: Institutions in Transition – Challenges for New Modes of Governance 52696, Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO).
    2. Silvia Macchia, 2022. "Unbundling the information needs of new-generation agricultural companies," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2022(2 Suppl.), pages 117-141.
    3. Ripoll-Zarraga, Ane Elixabete & Huderek-Glapska, Sonia, 2021. "Airports’ managerial human capital, ownership, and efficiency," Journal of Air Transport Management, Elsevier, vol. 92(C).
    4. Tingey-Holyoak, Joanne & Pisaniello, John & Buss, Peter & Mayer, Wolfgang, 2021. "The importance of accounting-integrated information systems for realising productivity and sustainability in the agricultural sector," International Journal of Accounting Information Systems, Elsevier, vol. 41(C).
    5. Sebastiano Cupertino & Gianluca Vitale & Angelo Riccaboni, 2018. "L?impatto dei Big Data sulle attivit? di pianificazione & controllo aziendali: In caso di studio di una PMI agricola Italiana," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2018(3), pages 59-86.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jaume Puig & Josep M. Argilés, 2000. "Measuring and explaining farm inefficiency in a panel data set of mixed farms," Economics Working Papers 503, Department of Economics and Business, Universitat Pompeu Fabra.
    2. Boris Bravo-Ureta & Daniel Solís & Víctor Moreira López & José Maripani & Abdourahmane Thiam & Teodoro Rivas, 2007. "Technical efficiency in farming: a meta-regression analysis," Journal of Productivity Analysis, Springer, vol. 27(1), pages 57-72, February.
    3. Gabriela Pérez Quesada, 2017. "Technical efficiency of dairy farms in Uruguay: a stochastic production frontier analysis," Documentos de Trabajo (working papers) 0517, Department of Economics - dECON.
    4. Wilson, Paul & Hadley, David & Asby, Carol, 2001. "The influence of management characteristics on the technical efficiency of wheat farmers in eastern England," Agricultural Economics, Blackwell, vol. 24(3), pages 329-338, March.
    5. repec:ags:bdbjaf:258303 is not listed on IDEAS
    6. Pierani, Pierpaolo & Rizzi, Pier Luigi, 2003. "Technology and efficiency in a panel of Italian dairy farms: an SGM restricted cost function approach," Agricultural Economics, Blackwell, vol. 29(2), pages 195-209, October.
    7. Abdul Wadud, 2013. "Impact of Microcredit on Agricultural Farm Performance and Food Security in Bangladesh," Working Papers 14, Institute of Microfinance (InM).
    8. 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).
    9. Md Abdur Rouf, 2020. "Evaluation of Agricultural Projects by Parametric Cost Efficiency and Productivity-gap Approaches: An Empirical Study of Flood Control and Drainage Systems in the Southwest Coastal Area of Bangladesh," Japanese Journal of Agricultural Economics (formerly Japanese Journal of Rural Economics), Agricultural Economics Society of Japan (AESJ), vol. 22.
    10. Rouf, Abdur, 2015. "Conventional vs Natural Flood Control and Drainage Managements in a Tidal Coastal Zone: An Evaluation from a Productive Efficiency Perspective," 89th Annual Conference, April 13-15, 2015, Warwick University, Coventry, UK 256023, Agricultural Economics Society.
    11. Alene, Arega D. & Manyong, Victor M. & Gockowski, James, 2006. "The production efficiency of intercropping annual and perennial crops in southern Ethiopia: A comparison of distance functions and production frontiers," Agricultural Systems, Elsevier, vol. 91(1-2), pages 51-70, November.
    12. Edward Ebo ONUMAH & Bernhard BRÜMMER & Gabriele HÖRSTGEN-SCHWARK, 2010. "Productivity of the hired and family labour and determinants of technical inefficiency in Ghana's fish farms," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 56(2), pages 79-88.
    13. Goyal, S.K. & Suhag, K.S. & Pandey, U.K., 2006. "An Estimation of Technical Efficiency of Paddy Farmers in Haryana State of India," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 61(1), pages 1-15.
    14. Thiam, Abdourahmane & Bravo-Ureta, Boris E. & Rivas, Teodoro E., 2001. "Technical efficiency in developing country agriculture: a meta-analysis," Agricultural Economics, Blackwell, vol. 25(2-3), pages 235-243, September.
    15. Wasantha Athukorala & Clevo Wilson, 2012. "Groundwater overuse and farm-level technical inefficiency: evidence from Sri Lanka," School of Economics and Finance Discussion Papers and Working Papers Series 279, School of Economics and Finance, Queensland University of Technology.
    16. Imori, Denise & Guilhoto, Joaquim José Martins & Postali, Fernando Antonio Slaibe, 2012. "Eficiência técnica das agropecuárias familiar e patronal – diferenças regionais no Brasil [Technical efficiency of agricultural households and business - regional differences in Brazil]," MPRA Paper 46954, University Library of Munich, Germany.
    17. Latruffe, Laure & Bravo-Ureta, Boris E. & Moreira, Victor H. & Desjeux, Yann & Dupraz, Pierre, 2011. "Productivity and Subsidies in European Union Countries: An Analysis for Dairy Farms Using Input Distance Frontiers," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114396, European Association of Agricultural Economists.
    18. Yongil Jeon & Ishak Haji Omar & K. Kuperan & Dale Squires & Indah Susilowati, 2006. "Developing country fisheries and technical efficiency: the Java Sea purse seine fishery," Applied Economics, Taylor & Francis Journals, vol. 38(13), pages 1541-1552.
    19. Villano, Renato A. & Fleming, Euan M., 2004. "Analysis of Technical Efficiency in a Rainfed Lowland Rice Environment in Central Luzon Philippines Using a Stochastic Frontier Production Function with a Heteroskedastic Error Structure," Working Papers 12906, University of New England, School of Economics.
    20. Tim J. Coelli, 1995. "Recent Developments In Frontier Modelling And Efficiency Measurement," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 39(3), pages 219-245, December.
    21. Konstantinos Giannakas & K. Tran & Vangelis Tzouvelekas, 1999. "On the Choice of Functional Form in Stochastic Frontiers Models: A Box-Cox Approach," Working Papers 9915, University of Crete, Department of Economics.

    More about this item

    Keywords

    Farm Management;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aergaa:26408. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/etagrea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.