Efficiency in Damage Control Inputs: A Stochastic Production Frontier Approach
AbstractThe present paper extents the existing literature providing a theoretically consistent framework for measuring input-specific technical efficiency in damage control inputs within a stochastic production frontier model. The theoretical framework for modeling damage control agents is based on Fox and Weersink (1995) model specification that allows for increasing returns on damage control inputs. The empirical model accounts veterinary expenses as the damage control input and it is applied on a panel data set of sheep farms in Greece during the 1989-92 period. The results suggest that sheep farms in Greece are using inefficiently immunization and antibiotics in their flock as their average technical efficiency level was 72.82%. On the other hand, technical efficiency in conventional factors of production was found to be considerably higher on the average, 91.32%. Finally, our results indicate that farms that are technical efficient in the use of conventional inputs are also technical efficient in the use of damage control agents.
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Bibliographic InfoPaper provided by European Association of Agricultural Economists in its series 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark with number 24642.
Date of creation: 2005
Date of revision:
increasing returns; input-specific technical efficiency; damage and control function; sheep farms; Greece; Farm Management; Q12; Q16; C23; C51;
Find related papers by JEL classification:
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
- Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
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