Advanced Search
MyIDEAS: Login to save this paper or follow this series

Breathtaking or Stagnating? - Productivity, Technical Change and Structural Dynamics in Danish Organic Farming

Contents:

Author Info

  • Sauer, Johannes
  • Graversen, Jesper T.
  • Park, Timothy A.

Abstract

This paper attempts to quantitatively measure the change in the productivity of Danish organic farming in recent years by using panel data on 56 organic farms mainly engaged in milk production for the period 2002 to 2004. Based on a translog production frontier framework the technical and scale efficiency on farm level is analyzed by considering also curvature consistency. The total change in productivity for the reference period is measured by using the Malmquist total factor productivity index approach based on a time trends as well as a general index model specification. Input specific bias in technical change as well as a general index model specification. Input specific bias in technical change as well elasticities of input substitution are analyzed. Factors for the development of technical change and the change in efficiency over time are investigated by applying a bootstrapped ITSUR techniques. Finally we try to conclude on the significance of subsidies for promoting long term growth in organic production by estimating a bootstrapped bivariate probit model with respect to factors influencing the probability of organic market exit. The results revealed significant difference in the organic farms' technical efficiency, no significant total factor productivity growth and even a slightly negative rate of technical change in the period investigated. We found evidence for a positive relationship between subsidy payments and an increase in farm efficiency, technology improvements and a decreasing probability of organic market exit which was also confirmed for off farm income. Finally the general index mode specification was found to deliver a more accurate mapping of total factor productivity growth.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://purl.umn.edu/21481
Download Restriction: no

Bibliographic Info

Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2006 Annual meeting, July 23-26, Long Beach, CA with number 21481.

as in new window
Length:
Date of creation: 2006
Date of revision:
Handle: RePEc:ags:aaea06:21481

Contact details of provider:
Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202
Phone: (414) 918-3190
Fax: (414) 276-3349
Email:
Web page: http://www.aaea.org
More information through EDIRC

Related research

Keywords: Land Economics/Use;

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. David Audretsch, 1994. "Business Survival and the Decision to Exit," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 1(1), pages 125-137.
  2. David C. Wheelock & Paul W. Wilson, 1993. "Explaining bank failures: deposit insurance, regulation, and efficiency," Working Papers 1993-002, Federal Reserve Bank of St. Louis.
  3. Audretsch, David B & Mahmood, Talat, 1995. "New Firm Survival: New Results Using a Hazard Function," The Review of Economics and Statistics, MIT Press, vol. 77(1), pages 97-103, February.
  4. Evangelia Desli & Subhash C. Ray & Subal C. Kumbhakar, 2002. "A Dynamic Stochastic Frontier Production Model with Time-Varying Efficiency," Working papers, University of Connecticut, Department of Economics 2003-15, University of Connecticut, Department of Economics.
  5. Kompas, Tom & Che, Tuong Nhu, 2006. "Technology choice and efficiency on Australian dairy farms," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, Australian Agricultural and Resource Economics Society, vol. 50(1), March.
  6. Tom Kompas & Tuong Nhu Che, 2006. "Technology choice and efficiency on Australian dairy farms ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(1), pages 65-83, 03.
  7. Greene, W.H., 1996. "Marginal Effects in the Bivariate Probit Model," Working Papers, New York University, Leonard N. Stern School of Business, Department of Economics 96-11, New York University, Leonard N. Stern School of Business, Department of Economics.
  8. Dong-hyun Oh & Almas Heshmati & Hans Loof, 2009. "Technical Change and Total Factor Productivity Growth for Swedish Manufacturing and Service Industries," TEMEP Discussion Papers 200912, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Sep 2009.
  9. Lohr, Luanne & Salomonsson, Lennart, 2000. "Conversion subsidies for organic production: results from Sweden and lessons for the United States," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 22(2), March.
  10. Fotopoulos, Georgios & Louri, Helen, 2000. " Location and Survival of New Entry," Small Business Economics, Springer, Springer, vol. 14(4), pages 311-21, June.
  11. Efthymios Tsionas & Theodore Papadogonas, 2006. "Firm exit and technical inefficiency," Empirical Economics, Springer, Springer, vol. 31(2), pages 535-548, June.
  12. Tzouvelekas, Vangelis & Pantzios, Christos J. & Fotopoulos, Christos, 2002. "Empirical Evidence of Technical Efficiency Levels in Greek Organic and Conventional Farms," Agricultural Economics Review, Greek Association of Agricultural Economists, Greek Association of Agricultural Economists, vol. 3(2), August.
  13. Johannes Sauer, 2006. "Economic Theory and Econometric Practice: Parametric Efficiency Analysis," Empirical Economics, Springer, Springer, vol. 31(4), pages 1061-1087, November.
  14. Baltagi, Badi H & Griffin, James M, 1988. "A General Index of Technical Change," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 96(1), pages 20-41, February.
  15. Fried, Harold O. & Lovell, C. A. Knox & Schmidt, Shelton S. (ed.), 1993. "The Measurement of Productive Efficiency: Techniques and Applications," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780195072181, October.
  16. David Audretsch & Patrick Houweling & A. Thurik, 2000. "Firm Survival in the Netherlands," Review of Industrial Organization, Springer, Springer, vol. 16(1), pages 1-11, February.
  17. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, Springer, vol. 20(2), pages 325-32.
  18. Kumbhakar, Subal C & Ghosh, Soumendra & McGuckin, J Thomas, 1991. "A Generalized Production Frontier Approach for Estimating Determinants of Inefficiency in U.S. Dairy Farms," Journal of Business & Economic Statistics, American Statistical Association, American Statistical Association, vol. 9(3), pages 279-86, July.
  19. Madau, Fabio A., 2005. "Technical Efficiency in Organic Farming: An Application on Italian Cereal Farms Using a Parametric Approach," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark, European Association of Agricultural Economists 24545, European Association of Agricultural Economists.
  20. Flaten, Ola & Lien, Gudbrand D., 2005. "Stochastic Utility-Efficient Programming of Organic Dairy Farms," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark, European Association of Agricultural Economists 24743, European Association of Agricultural Economists.
  21. Tzouvelekas, Vangelis & Pantzios, Christos J. & Fotopoulos, Christos, 2001. "Technical efficiency of alternative farming systems: the case of Greek organic and conventional olive-growing farms," Food Policy, Elsevier, Elsevier, vol. 26(6), pages 549-569, December.
  22. Alfons Oude Lansink & Ky–sti Pietola, 2002. "Effciency and productivity of conventional and organic farms in Finland 1994--1997," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 29(1), pages 51-66, March.
  23. Tzouvelekas, Vangelis & Pantzios, Christos J. & Fotopoulos, Christos, 2001. "Economic Efficiency In Organic Farming: Evidence From Cotton Farms In Viotia, Greece," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, Southern Agricultural Economics Association, vol. 33(01), April.
  24. Baltagi, Badi H & Griffin, James M & Rich, Daniel P, 1995. "Airline Deregulation: The Cost Pieces of the Puzzle," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 36(1), pages 245-60, February.
  25. Baltagi, Badi H. & Rich, Daniel P., 2003. "Skill-Biased Technical Change in U.S. Manufacturing: A General Index Approach," IZA Discussion Papers 841, Institute for the Study of Labor (IZA).
  26. Kumbhakar, Subal C., 1990. "Production frontiers, panel data, and time-varying technical inefficiency," Journal of Econometrics, Elsevier, Elsevier, vol. 46(1-2), pages 201-211.
  27. Nishimizu, Mieko & Page, John M, Jr, 1982. "Total Factor Productivity Growth, Technological Progress and Technical Efficiency Change: Dimensions of Productivity Change in Yugoslavia, 1965-78," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 92(368), pages 920-36, December.
  28. repec:jaa:jagape:v:33:y:2001:i:1:p:35-48 is not listed on IDEAS
  29. Fare, Rolf & Shawna Grosskopf & Mary Norris & Zhongyang Zhang, 1994. "Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries," American Economic Review, American Economic Association, vol. 84(1), pages 66-83, March.
  30. Ryan, David L. & Wales, Terence J., 2000. "Imposing local concavity in the translog and generalized Leontief cost functions," Economics Letters, Elsevier, vol. 67(3), pages 253-260, June.
  31. Dunne, T. & Roberts, M.J., 1989. "Variation In Producer Turnover Across U.S. Manufacturing Industries," Papers, Pennsylvania State - Department of Economics 12-89-2, Pennsylvania State - Department of Economics.
  32. Subal Kumbhakar & Shinichiro Nakamura & Almas Heshmati, 2000. "Estimation of firm-specific technological bias, technical change and total factor productivity growth: a dual approach," Econometric Reviews, Taylor & Francis Journals, Taylor & Francis Journals, vol. 19(4), pages 162-173.
  33. Horowitz, Joel L., 2001. "The Bootstrap," Handbook of Econometrics, Elsevier, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 52, pages 3159-3228 Elsevier.
  34. Subal C. Kumbhakar, 2004. "Productivity and technical change: Measurement and testing," Empirical Economics, Springer, Springer, vol. 29(1), pages 185-191, January.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:ags:aaea06:21481. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.