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Efficiency, Environmental Contaminants and Farm Size: Testing for Links Using Stochastic Production Frontiers

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  • Kaddour Hadri

    ()
    (University of Liverpool)

  • Julie Whittaker

    (University of Exeter)

Abstract

This paper investigates whether there is any relationship between farm size, technical efficiency and the use of agrochemicals which are potentially environmentally contaminating. These questions are pertinent in the context of current EU policy decisions. Using two models of stochastic frontier production and a set of panel data on 35 farms from the South West of England for the years 1987-1991, we obtain an indication, that there is a positive relationship between technical efficiency and use of contaminants, and between technical efficiency and farm size. However, there is a weak negative relationship between farm size and use of contaminants.

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Bibliographic Info

Article provided by Universidad del CEMA in its journal Journal of Applied Economics.

Volume (Year): II (1999)
Issue (Month): (November)
Pages: 337-356

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Handle: RePEc:cem:jaecon:v:2:y:1999:n:2:p:337-356

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Keywords: Frontier production; technical efficiency; panel data; environment; farm size;

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References

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  1. Trosper, Ronald L, 1978. "American Indian Relative Ranching Efficiency," American Economic Review, American Economic Association, vol. 68(4), pages 503-16, September.
  2. Battese, George E. & Corra, Greg S., 1977. "Estimation Of A Production Frontier Model: With Application To The Pastoral Zone Of Eastern Australia," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 21(03), December.
  3. Hadri, K. & Guermat, C. & Whittaker, J., 1998. "Doubly Heteroscedastic Stochastic Production Frontiers with an English Cere al Farms," Discussion Papers 9908, Exeter University, Department of Economics.
  4. Faqir Singh Bagi & Cliff J. Huang, 1983. "Estimating Production Technical Efficiency for Individual Farms in Tennessee," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 31(2), pages 249-256, 07.
  5. Guermat, C. & Hadri, K., 1999. "Heteroscedasticity in Stochastic Frontier Models: a Monte Carlo Analysis," Discussion Papers 9914, Exeter University, Department of Economics.
  6. Dawson, P J, 1987. "Farm-Specific Technical Efficiency in the England and Wales Dairy Sector," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 14(4), pages 383-94.
  7. Battese, George E. & Coelli, Tim J., 1988. "Prediction of firm-level technical efficiencies with a generalized frontier production function and panel data," Journal of Econometrics, Elsevier, vol. 38(3), pages 387-399, July.
  8. Guermat, C. & Hadri, K., 1999. "Backpropagation Neural Network versus Translog Model in Stochastic Frontiers: a Note Carlo Compatrison," Discussion Papers 9916, Exeter University, Department of Economics.
  9. repec:fth:exetec:99/14 is not listed on IDEAS
  10. Byrnes, Patricia, et al, 1987. "Technical Efficiency and Size: The Case of Illinois Grain Farms," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 14(4), pages 367-81.
  11. Kaddour Hadri, 1997. "A frontier approach to disequilibrium models," Applied Economics Letters, Taylor & Francis Journals, vol. 4(11), pages 699-701.
  12. B. E. Bravo-Ureta & L. Rieger, 1990. "Alternative Production Frontier Methodologies And Dairy Farm Efficiency," Journal of Agricultural Economics, Wiley Blackwell, vol. 41(2), pages 215-226.
  13. Schmidt, Peter & Knox Lovell, C. A., 1979. "Estimating technical and allocative inefficiency relative to stochastic production and cost frontiers," Journal of Econometrics, Elsevier, vol. 9(3), pages 343-366, February.
  14. Kumbhakar, Subal C, 1993. "Short-Run Returns to Scale, Farm-Size, and Economic Efficiency," The Review of Economics and Statistics, MIT Press, vol. 75(2), pages 336-41, May.
  15. Bagi, Faqir Singh, 1982. "Relationship Between Farm Size And Technical Efficiency In West Tennessee Agriculture," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 14(02), December.
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Cited by:
  1. Markus Lampe & Paul Sharp, 2014. "Just Add Milk: A Productivity Analysis of the Revolutionary Changes in Nineteenth Century Danish Dairying," Working Papers in Economic History wp14-03, Universidad Carlos III, Departamento de Historia Económica e Instituciones.
  2. Mary Graham, 2006. "Sustainability: Meaning and Measurement with Application to Agriculture," Economics Series 2006_31, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
  3. Kaddour Hadri & Cherif Guermat & Julie Whittaker, 2003. "Estimating Farm Efficiency in the Presence of Double Heteroscedasticity Using Panel Data," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 255-268, November.
  4. Munksgaard, Jesper & Christoffersen, Line Block & Keiding, Hans & Pedersen, Ole Gravgard & Jensen, Trine S., 2007. "An environmental performance index for products reflecting damage costs," Ecological Economics, Elsevier, vol. 64(1), pages 119-130, October.
  5. 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.

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