Farm Heterogeneity and Efficiency in Polish Agriculture: A Stochastic Frontier Analysis
AbstractThis paper deals with the estimation of a random coefficient model. The virtue of this approach is that it considers firm heterogeneity, which conventional SFA models do not. Applying the model to Polish farms, the results indicate that the conventional random and fixed effect models overestimate the inefficiency score. In addition, the reasons for inefficiency are analysed. It is shown that despite the fragmentation of Polish agriculture, there is no evidence for scale inefficiency. Moreover, inefficiency could partly be attributed to factors, which affect the management input and requirements on farms.
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Bibliographic InfoPaper provided by European Association of Agricultural Economists in its series 104th Seminar, September 5-8, 2007, Budapest, Hungary with number 7823.
Date of creation: 2007
Date of revision:
SFA; random component model; Poland; agriculture; management; Farm Management;
Other versions of this item:
- Hockmann, Heinrich & Pieniadz, Agata, 2008. "Farm Heterogeneity and Efficiency in Polish Agriculture: A Stochastic Frontier Analysis," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44278, European Association of Agricultural Economists.
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