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Measuring and explaining scale efficiency with the parametric approach: the case of Greek tobacco growers

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  • Giannis Karagiannis
  • Alexander Sarris

Abstract

Estimates of technical and scale inefficiencies of tobacco farms in Greece during the period 1991-1995 are obtained by using the parametric approach. The degree of technical efficiency was found to be lower than the degree of scale efficiency and thus a greater portion of overall inefficiency is due to producing below the production frontier than to producing at an inefficient scale. In addition, the vast majority of farms in the sample exhibited suboptimal scale implying that output should be expanded to reach the optimal scale. Empirical results are provided to determine the impact of various socioeconomic, demographic, and geoclimatic indicators on technical and scale efficiency. Copyright 2005 International Association of Agricultural Economics.

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Bibliographic Info

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

Volume (Year): 33 (2005)
Issue (Month): s3 (November)
Pages: 441-451

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Handle: RePEc:bla:agecon:v:33:y:2005:i:s3:p:441-451

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Cited by:
  1. Henningsen, Arne & Kumbhakar, Subal C. & Lien, Gudbrand D., 2009. "Econometric Analysis of the Effects of Subsidies on Farm Production in Case of Endogenous Input Quantities," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin, Agricultural and Applied Economics Association 49728, Agricultural and Applied Economics Association.
  2. Subal Kumbhakar & Gudbrand Lien & J. Hardaker, 2014. "Technical efficiency in competing panel data models: a study of Norwegian grain farming," Journal of Productivity Analysis, Springer, Springer, vol. 41(2), pages 321-337, April.
  3. Kumbhakar, Subal C. & Lien, Gudbrand D. & Hardaker, J. Brian, 2011. "Technical efficiency in competing panel data models: A study of Norwegian grain farming," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland, European Association of Agricultural Economists 114673, European Association of Agricultural Economists.
  4. Madau, Fabio A., 2010. "Parametric Estimation Of Technical And Scale Efficiencies In Italian Citrus Farming," MPRA Paper 26818, University Library of Munich, Germany.
  5. Madau, Fabio A., 2012. "Technical and scale efficiency in the Italian Citrus Farming: A comparison between Stochastic Frontier Analysis (SFA) and Data Envelopment Analysis(DEA) Models," MPRA Paper 41403, University Library of Munich, Germany.
  6. Hardwick Tchale & Johannes Sauer, 2007. "The efficiency of maize farming in Malawi. A bootstrapped translog frontier," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, INRA Department of Economics, vol. 82, pages 33-56.
  7. Skevas, Theodoros & Lansink, Alfons Oude & Stefanou, Spiro E., 2012. "Measuring technical efficiency in the presence of pesticide spillovers and production uncertainty: The case of Dutch arable farms," European Journal of Operational Research, Elsevier, Elsevier, vol. 223(2), pages 550-559.
  8. Gómez-Limón, José A. & Sanchez-Fernandez, Gabriela, 2010. "Empirical evaluation of agricultural sustainability using composite indicators," Ecological Economics, Elsevier, Elsevier, vol. 69(5), pages 1062-1075, March.

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