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Efficiency in Damage Control Inputs: A Stochastic Production Frontier Approach

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  • Karagiannis, Giannis
  • Tsionas, Efthimios
  • Tzouvelekas, Vangelis

Abstract

The 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 Info

Paper provided by European Association of Agricultural Economists in its series 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark with number 24642.

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Date of creation: 2005
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Handle: RePEc:ags:eaae05:24642

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Related research

Keywords: increasing returns; input-specific technical efficiency; damage and control function; sheep farms; Greece; Farm Management; Q12; Q16; C23; C51;

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  1. Babcock, Bruce A., 1992. "Effects of Uncertainty on Optimal Nitrogen Applications (The)," Staff General Research Papers 10588, Iowa State University, Department of Economics.
  2. Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 233-238, August.
  3. Alfons Oude Lansink & Alain Carpentier, 2001. "Damage Control Productivity: An Input Damage Abatement Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(3), pages 11-22.
  4. Kopp, Raymond J, 1981. "The Measurement of Productive Efficiency: A Reconsideration," The Quarterly Journal of Economics, MIT Press, vol. 96(3), pages 477-503, August.
  5. Cowan, Robin & Gunby, Philip, 1996. "Sprayed to Death: Path Dependence, Lock-In and Pest Control Strategies," Economic Journal, Royal Economic Society, vol. 106(436), pages 521-42, May.
  6. Babcock, Bruce A. & Lichtenberg, E. & Zilberman, David, 1992. "Impact of Damage Control and Quality of Output: Estimating Pest Control Effectiveness," Staff General Research Papers 10589, Iowa State University, Department of Economics.
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