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Decomposition of Productivity Growth Using Distance Functions: The Case of Dairy Farms in Three European Countries

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Author Info
Brummer, Bernhard
Glauben, Thomas
Thijssen, Geert
Abstract

Within an output distance function framework, the Total Factor Productivity growth index is decomposed into four components (technical change, technical and allocative efficiency, and scale component). We estimate stochastic translog output distance functions using panel data from dairy farms over the period 1991-94 for three European countries (Germany, the Netherlands, and Poland). Results indicate that the change in the productivity growth index in Germany (+6%) and Poland (-5%) are mainly dictated by the technical change component. In contrast, the productivity growth index in the Netherlands (+3%) is influenced by allocative efficiency components. Copyright 2002 by American Agricultural Economics Association

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Article provided by American Agricultural Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 84 (2002)
Issue (Month): 3 (August)
Pages: 628-44
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Handle: RePEc:bla:ajagec:v:84:y:2002:i:3:p:628-44

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  1. Laure Latruffe & Jozsef Fogarasi, 2009. "Farm performance and support in Central and Western Europe: A comparison of Hungary and France," Working Papers SMART - LERECO 200907, INRA UMR SMART. [Downloadable!]
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  2. Sipilainen, Timo & Lansink, Alfons Oude, 2005. "Learning in Organic Farming – An Application on Finnish Dairy Farms," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24493, European Association of Agricultural Economists. [Downloadable!]
  3. Balcombe, Kelvin & Davidova, Sophia & Latruffe, Laure, 2005. "Productivity Change in Polish Agriculture: An Application of a Bootstrap Procedure to Malmquist Indices," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24572, European Association of Agricultural Economists. [Downloadable!]
  4. Meike Wollni & Bernhard Brümmer, 2009. "Productive efficiency of specialty and conventional coffee farmers in Costa Rica: Accounting for technological heterogeneity and self-selection," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 13, Courant Research Centre PEG. [Downloadable!]
  5. Boris Bravo-Ureta & Daniel Solís & Víctor Moreira López & José Maripani & Abdourahmane Thiam & Teodoro Rivas, 2007. "Technical efficiency in farming: a meta-regression analysis," Journal of Productivity Analysis, Springer, vol. 27(1), pages 57-72, February. [Downloadable!] (restricted)
  6. Thomas L. Marsh & Allen M. Featherstone & Thomas A. Garrett, 2003. "Input inefficiency in commercial banks: a normalized quadratic input distance approach," Working Papers 2003-036, Federal Reserve Bank of St. Louis. [Downloadable!]
  7. Key, Nigel & McBride, William & Mosheim, Roberto, 2006. "Decomposition of Total Factor Productivity Change in the U.S. Hog Industry, 1992-2004," 2006 Annual meeting, July 23-26, Long Beach, CA 21323, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  8. Zhu, Xueqin & Oude Lansink, Alfons, 2008. "Technical Efficiency of the Crop Farms under the Various CAP Reforms: Empirical Studies for Germany, the Netherlands and Sweden," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6589, European Association of Agricultural Economists. [Downloadable!]
  9. Tim J. Coelli & Chris O’Donnell, 2003. "A Bayesian Approach To Imposing Curvature On Distance Functions," CEPA Working Papers Series WP032003, School of Economics, University of Queensland, Australia. [Downloadable!]
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  10. Glauben, Thomas & Lu, Wencong & Bruemmer, Bernhard, 2003. "Policy Reform And Productivity Change In Chinese Agriculture: A Distance Function Approach," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25896, International Association of Agricultural Economists. [Downloadable!]
  11. Kang, Hye-Jung & Kim, Jeong-Ho, 2008. "Impact of Direct Income Payments on Productive Efficiency of Korean Rice Farms," Journal of Rural Development/Nongchon-Gyeongje, Korea Rural Economic Institute, vol. 31(2), May. [Downloadable!]
  12. Balcombe, Kelvin & Davidova, Sophia & Latruffe, Laure, 2006. "The Use of Bootstrapped Malmquist Indices to Reassess Productivity Change Findings: An Application to a Sample of Polish Farms," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25793, International Association of Agricultural Economists. [Downloadable!]
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