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Assessing the Efficiency of Sheep Farming in Mountainous Areas of Greece. A Non Parametric Approach

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Author Info

  • Fousekis, Panos
  • Spathis, Pavlos
  • Tsimboukas, Konstantinos

Abstract

The objective of this paper is the measurement and decomposition of the overall efficiency of sheep farming in mountainous areas of Greece. To this end, both a Constant Returns to Scale (CRS) and a Variable Returns to Scale (VRS) DEA model has been applied to a sample to 101 farms located in the mountainous areas of Epirus, Sterea, and Thessaly. The empirical results suggest: a) the average overall efficiency ratio in the sample is about 80 percent; b) the pure technical and the scale efficiency are of almost equal importance in the determination of the overall efficiency. Therefore, CRS DEA models will tend to underestimate systematically the level of pure technical efficiency; c) there are differences in the overall efficiency ratios across the three regions stemming mainly from differences in pure technical efficiency.

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Bibliographic Info

Article provided by Greek Association of Agricultural Economists in its journal Agricultural Economics Review.

Volume (Year): 02 (2001)
Issue (Month): 2 (August)
Pages:

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Handle: RePEc:ags:aergaa:26423

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Keywords: Livestock Production/Industries;

References

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  1. Fare, Rolf & Knox Lovell, C. A., 1981. "Measuring the technical efficiency of production: Reply," Journal of Economic Theory, Elsevier, vol. 25(3), pages 453-454, December.
  2. 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.
  3. Thanassoulis, Emmanuel, 2000. "DEA and its use in the regulation of water companies," European Journal of Operational Research, Elsevier, vol. 127(1), pages 1-13, November.
  4. D. L. Neff & P. Garcia & C. H. Nelson, 1993. "Technical Efficiency: A Comparison Of Production Frontier Methods," Journal of Agricultural Economics, Wiley Blackwell, vol. 44(3), pages 479-489.
  5. Isabelle Piot-Lepetit & Dominique Vermersch & Robert Weaver, 1997. "Agriculture's environmental externalities: DEA evidence for French agriculture," Applied Economics, Taylor & Francis Journals, vol. 29(3), pages 331-338.
  6. Binswanger, Hans P. & Deininger, Klaus & Feder, Gershon, 1995. "Power, distortions, revolt and reform in agricultural land relations," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 42, pages 2659-2772 Elsevier.
  7. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
  8. 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 325-32.
  9. Hallam, David & Machado, Fernando, 1996. "Efficiency Analysis with Panel Data: A Study of Portuguese Dairy Farms," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 23(1), pages 79-93.
  10. Bauer, Paul W., 1990. "Recent developments in the econometric estimation of frontiers," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 39-56.
  11. Kopp, Raymond J., 1981. "Measuring the technical efficiency of production: A comment," Journal of Economic Theory, Elsevier, vol. 25(3), pages 450-452, December.
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Cited by:
  1. Ismatul Hidayah & Andriko Noto Susanto, 2013. "Economies of Scale and Allocative Efficiency of Rice Farming at West Seram Regency, Maluku Province, Indonesia," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 3(5), pages 624-634, May.
  2. Galanopoulos, Konstantinos & Aggelopoulos, Stamatis & Kamenidou, Irene & Mattas, Konstadinos, 2006. "Assessing the effects of managerial and production practices on the efficiency of commercial pig farming," Agricultural Systems, Elsevier, vol. 88(2-3), pages 125-141, June.

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