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Using Cross-Section Data to Adjust Technical Efficiency Indexes Estimated With Panel Data

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  • Antonio M. �lvarez
  • Eduardo Gonz�lez
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    Abstract

    This article proposes a procedure to incorporate cross-sectional information in the estimation of technical efficiency indexes obtained from panel data. A conventional index of technical efficiency is estimated in a first stage using panel data on inputs and outputs. The individual effects from the first stage are then adjusted using cross-sectional information, obtaining a corrected technical efficiency index. The model is applied to a panel of eighty-two Spanish dairy farms, where only cross-sectional information about input quality is available. An analysis of variance is performed between some variables and both the corrected and the uncorrected indexes, finding that the conclusions derived from the two analyses are different. Copyright 1999, Oxford University Press.

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    Bibliographic Info

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

    Volume (Year): 81 (1999)
    Issue (Month): 4 ()
    Pages: 894-901

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    Handle: RePEc:oup:ajagec:v:81:y:1999:i:4:p:894-901

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    Cited by:
    1. Nadia BELHAJ HASSINE, 2007. "Technical Efficiency In The Mediterranean Countries’ Agricultural Sector," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 25, pages 27-44.
    2. Paul, Catherine J. Morrison & Nehring, Richard, 2005. "Product diversification, production systems, and economic performance in U.S. agricultural production," Journal of Econometrics, Elsevier, vol. 126(2), pages 525-548, June.
    3. Lusine H. Aramyan & Christien J.M. Ondersteijn & Alfons G.J.M. Oude Lansink & Olaf van Kooten & Jo H.M. Wijnands, 2006. "Analyzing greenhouse firm performance across different marketing channels," Agribusiness, John Wiley & Sons, Ltd., vol. 22(2), pages 267-280.
    4. Park, Dooho & Davies, Stephen P. & Seidl, Andrew F., 2001. "A Nationwide, State-Level, Analysis Of Animal Confinement Policy By Selected Species," 2001 Annual Meeting, July 8-11, 2001, Logan, Utah 36160, Western Agricultural Economics Association.

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