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Efficiency of Scottish Farms: A Stochastic Cost Frontier Analysis

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  • Revoredo-Giha, Cesar
  • Milne, Catherine E.
  • Leat, Philip M.K.
  • Cho, Woong Je

Abstract

In this paper the relative cost efficiency of Scottish farms is determined, and variables that explain this efficiency by farm type are identified and implications discussed. A panel dataset from the Farm Accounts Scheme (FAS) survey for the period 1997-2004 was used for the estimation. A cost efficiency indicator was measured using a fixed effect panel data regression. Further analysis, to explain the efficiency results, indicated the presence of important farm size and regional effects. However, other variables, whilst statistically significant, did not produce a consistent effect across the different farm types.

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File URL: http://purl.umn.edu/56633
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Bibliographic Info

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

Volume (Year): 10 (2009)
Issue (Month): 2 (June)
Pages:

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Handle: RePEc:ags:aergaa:56633

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Related research

Keywords: Stochastic cost frontier analysis; cost efficiency; Scottish farms; Common Agricultural Policy; Farm Management; Q12;

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References

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  1. Andrew Barnes, 2008. "Technical Efficiency Estimates of Scottish Agriculture: A Note," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(2), pages 370-376, 06.
  2. Caves, Douglas W & Christensen, Laurits R & Tretheway, Michael W, 1980. "Flexible Cost Functions for Multiproduct Firms," The Review of Economics and Statistics, MIT Press, vol. 62(3), pages 477-81, August.
  3. 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.
  4. Santarossa, John M., 2003. "Technical And Financial Sustainability In Scottish Agriculture," Miscellaneous Papers 11829, Agecon Search.
  5. Paul Wilson & Dave Hadley & Stephen Ramsden & Ioannis Kaltsas, 1998. "Measuring and Explaining Technical Efficiency in UK Potato Production," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(3), pages 294-305.
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Cited by:
  1. repec:ags:ijamad:151891 is not listed on IDEAS
  2. Jiang, Nan & Sharp, Basil, 2013. "Cost Efficiency of Dairy Farming in New Zealand: a stochastic frontier analysis," 2013 Conference, August 28-30, 2013, Christchurch, New Zealand 160266, New Zealand Agricultural and Resource Economics Society.
  3. Aysun, Uluc & Bouvet, Florence & Hofler, Richard, 2014. "An alternative measure of structural unemployment," Economic Modelling, Elsevier, vol. 38(C), pages 592-603.
  4. Moradi, Ebrahim & Pahlavani, Mosayeb & Akbari, Ahmad & Bashrabadi, Hossain Mehrabi, 2013. "Comparative Analysis of Stochastic Frontier Partially non-parametric and Stochastic Frontier Parametric Methods Case Study: Measuring Cost Efficiency in Wheat Production in Iran," International Journal of Agricultural Management and Development (IJAMAD), Iranian Association of Agricultural Economics, vol. 3(2), June.

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