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Frontier Technology and Inefficiencies in Programming Sector Models: An Application to Swedish Agriculture

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  • Jonasson, Lars
  • Apland, Jeffrey

Abstract

A new approach to sector modelling with mathematical programming is proposed. The approach is based on information received from nonparametric efficiency analysis of farm data. Efficient farms are used to construct a set of empirically based, multi-input, multi-output technologies in the sector model. To further improve the depiction of production in the model, observed inefficiencies are also incorporated. An application of the technique replicates base-year observations better than a traditional model. Further, the new model has less tendency towards over-specialisation and unrealistic jumps in the price response. By explicitly taking existing structural inefficiencies into account, the model provides indications of the direction and strength of incentives for structural change. Copyright 1997 by Oxford University Press.

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Bibliographic Info

Article provided by Foundation for the European Review of Agricultural Economics in its journal European Review of Agricultural Economics.

Volume (Year): 24 (1997)
Issue (Month): 1 ()
Pages: 109-31

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Handle: RePEc:oup:erevae:v:24:y:1997:i:1:p:109-31

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Cited by:
  1. Wiborg, Torben, 2000. "A Comparison of Agricultural Sector Models: CRAM, DRAM, SASM and the KVL Model," Unit of Economics Working papers 24211, Royal Veterinary and Agricultural University, Food and Resource Economic Institute.
  2. Balogh, Peter & Ertsey, Imre & Szucs, Istvan, 2009. "Answer to the challenges of the 21st century in the Hungarian pig sector," 2009 Conference, August 16-22, 2009, Beijing, China 51027, International Association of Agricultural Economists.
  3. Asmild, Mette & Wiborg, Torben, 1999. "A Relatively Easy-Access Description of the Logistics, Purposes and Function of the Sector Model KRAM," Unit of Economics Working papers 24197, Royal Veterinary and Agricultural University, Food and Resource Economic Institute.
  4. Arnade, Carlos A. & Trueblood, Michael A., 2002. "Estimating A Profit Function In The Presence Of Inefficiency: An Application To Russian Agriculture," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(01), July.
  5. Balogh, Peter & Ertsey, Imre & Fenyves, Veronika & Nagy, Lajos, 2009. "Analysis and optimization regarding the activity of a Hungarian Pig Sales and Purchase Cooperation," Studies in Agricultural Economics, Research Institute for Agricultural Economics, issue 109, April.
  6. Speelman, Stijn & Frija, Aymen & Farolfi, Stefano & Buysse, Jeroen & D'Haese, Marijke F.C. & D'Haese, Luc, 2008. "A new methodology for assessing the impact of water-pricing scenarios: case study of small-scale irrigation schemes in South Africa," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43836, European Association of Agricultural Economists.
  7. Speelman, Stijn & Buysse, Jeroen & Farolfi, Stefano & Frija, Aymen & D'Haese, Marijke & D'Haese, Luc, 2009. "Estimating the impacts of water pricing on smallholder irrigators in North West Province, South Africa," Agricultural Water Management, Elsevier, vol. 96(11), pages 1560-1566, November.
  8. Arifullah, Shahnaz A. & Önal, Hayri & Chishti, Anwar F., 0. "Effects of technological progress on consumers’ and producers’ welfare: a case study for Pakistan Punjab," Quarterly Journal of International Agriculture, Humboldt-Universität zu Berlin, vol. 49.

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