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Self-Dual Stochastic Production Frontiers And Decomposition Of Output Growth: The Case Of Olive-Growing Farms In Greece

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  • Karagiannis, Giannis
  • Tzouvelekas, Vangelis

Abstract

This paper provides a decomposition of output growth among olive-growing farms in Greece during the period 1987-1993 by integrating Bauer's (1990) and Bravo-Ureta and Rieger's (1991) approaches. The proposed methodology is based on the use of self-dual production frontier functions. Output growth is attributed to the size effect, technical change, changes in technical and input allocative inefficiency, and the scale effect. Empirical results indicate that the scale and the input allocative inefficiency effects, which were not taken into account in previous studies on output growth decomposition analysis, have caused a 7.3% slowdown and a 11.0% increase in output growth, respectively. Technical change was found to be the main source of TFP growth while both technical and input allocative inefficiency decreased over time. Still though, a 56.5% of output growth is attributed to input growth.

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Bibliographic Info

Article provided by Northeastern Agricultural and Resource Economics Association in its journal Agricultural and Resource Economics Review.

Volume (Year): 30 (2001)
Issue (Month): 2 (October)
Pages:

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Handle: RePEc:ags:arerjl:31431

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Keywords: Production Economics;

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  12. Ahmad, Munir & Boris E., Bravo-Ureta, 1995. "An econometric decomposition of dairy output growth," MPRA Paper 37678, University Library of Munich, Germany.
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  14. Jean-Christophe Bureau & Rolf Färe & Shawna Grosskopf, 1995. "A Comparison Of Three Nonparametric Measures Of Productivity Growth In European And United States Agriculture," Journal of Agricultural Economics, Wiley Blackwell, vol. 46(3), pages 309-326.
  15. Tauer, Loren W., 1993. "Short-Run And Long-Run Efficiencies Of New York Dairy Farms," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 22(1), April.
  16. Fare, Rolf & Knox Lovell, C. A., 1978. "Measuring the technical efficiency of production," Journal of Economic Theory, Elsevier, vol. 19(1), pages 150-162, October.
  17. 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.
  18. Jenifer Piesse & Colin Thirtle & Johan Zyl, 1996. "Effects Of The 1992 Drought On Productivity In The South African Homelands: An Application Of The Malmquist Index," Journal of Agricultural Economics, Wiley Blackwell, vol. 47(1-4), pages 247-254.
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Cited by:
  1. Dhehibi, Boubaker & Elloumi, Mohamed, 2009. "Stochastic Production Frontiers and Decomposition of Output Growth: The case of citrus-growing farms in Tunisia," 2009 Conference, August 16-22, 2009, Beijing, China 49953, International Association of Agricultural Economists.
  2. Giannis Karagiannis & Vangelis Tzouvelekas, . "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.
  3. Giannis Karagiannis & Peter Midmore & Vangelis Tzouvelekas, . "Parametric Decomposition Of Output Growth," Working Papers 0204, University of Crete, Department of Economics.
  4. Lambarraa, Fatima & Serra, Teresa & Gil Roig, Jose Maria, 2006. "Technical efficiency analysis and decomposition of productivity growth of Spanish olive farms," 98th Seminar, June 29-July 2, 2006, Chania, Crete, Greece 10071, European Association of Agricultural Economists.
  5. Dhehibi, Boubaker & Lachaal, Lassaad & Karray, B. & Chebil, Ali, 2006. "Decomposition of output growth in the Tunisian olive-growing sector: A frontier production function approach," 98th Seminar, June 29-July 2, 2006, Chania, Crete, Greece 10037, European Association of Agricultural Economists.

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