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Total Factor Productivity Adjusted for a Detrimental Input

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  • Melfou, Katerina
  • Papanagiotou, Evangelos

Abstract

The measurement of total factor productivity in agriculture has been recently extended in order to include some 'bad' outputs that are jointly produced along with agricultural goods. In this paper, total factor productivity is decomposed into its determining factors and nitrate pollution is treated as an environmentally detrimental input. A restricted variable cost function is specified for Greek agriculture for the period 1969-1996. A constraint is assumed on nitrate pollution and the TFP estimates, which are obtained, are then decomposed into the rate of technical change effect, the scale effect and the market disequilibrium effect.

Suggested Citation

  • Melfou, Katerina & Papanagiotou, Evangelos, 2003. "Total Factor Productivity Adjusted for a Detrimental Input," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 4(2), pages 1-14, August.
    • Handle: RePEc:ags:aergaa:26439
    DOI: 10.22004/ag.econ.26439
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    References listed on IDEAS

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    1. Panos Fousekis, 1997. "Internal And External Scale Effects In Productivity Analysis: A Dynamic Dual Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1‐3), pages 151-166, January.
    2. Frank M. Gollop & Gregory P. Swinand, 1998. "From Total Factor to Total Resource Productivity: An Application to Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 577-583.
    3. V. Kerry Smith, 1998. "Should Pollution Reductions Count as Productivity Gains for Agriculture?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 591-594.
    4. Barnes, Andrew P., 2002. "Publicly-funded UK agricultural R&D and 'social' total factor productivity," Agricultural Economics, Blackwell, vol. 27(1), pages 65-74, May.
    5. Hailu, Atakelty & Veeman, Terrence S., 2001. "Alternative methods for environmentally adjusted productivity analysis," Agricultural Economics, Blackwell, vol. 25(2-3), pages 211-218, September.
    6. Stijn Reinhard & C.A. Knox Lovell & Geert Thijssen, 1999. "Econometric Estimation of Technical and Environmental Efficiency: An Application to Dutch Dairy Farms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 44-60.
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    Cited by:

    1. Argiles, Josep M. & Brown, Nestor Duch, 2011. "A comparison of the economic and environmental performances of conventional and organic farming: evidence from financial statements," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 11(1), pages 1-18, January.
    2. Argiles, Josep M. & Brown, Nestor Duch, 2011. "A comparison of the economic and environmental performances of conventional and organic farming: evidence from financial statements," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 11(1), pages 1-18, January.

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    Keywords

    Productivity Analysis;

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