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Measuring the impacts of production risk on technical efficiency: a state-contingent conditional order-m approach

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  • Serra, Teresa
  • Oude Lansink, Alfons

Abstract

This article studies the influence of risk on farms’ technical efficiency levels. The analysis extends the order-m efficiency scores approach proposed by Daraio and Simar (2005) to the state-contingent framework. The empirical application focuses on cross section data of Catalan specialised crop farms from the year 2011. Results suggest that accounting for production risks increases the technical performance. A 10% increase in output risk will result in a 2.5% increase in average firm technical performance.

Suggested Citation

  • Serra, Teresa & Oude Lansink, Alfons, 2014. "Measuring the impacts of production risk on technical efficiency: a state-contingent conditional order-m approach," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182661, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae14:182661
    DOI: 10.22004/ag.econ.182661
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    Cited by:

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    5. Yin, Pengzhen & Sun, Jiasen & Chu, Junfei & Liang, Liang, 2016. "Evaluating the environmental efficiency of a two-stage system with undesired outputs by a DEA approach: An interest preference perspectiveAuthor-Name: Wu, Jie," European Journal of Operational Research, Elsevier, vol. 254(3), pages 1047-1062.
    6. Tzeremes, Nickolaos G., 2015. "Efficiency dynamics in Indian banking: A conditional directional distance approach," European Journal of Operational Research, Elsevier, vol. 240(3), pages 807-818.
    7. Alghalith, Moawia, 2016. "A note on the theory of the firm under multiple uncertainties," European Journal of Operational Research, Elsevier, vol. 251(1), pages 341-343.
    8. Nadia Adnan & Shahrina Md Nordin, 2021. "How COVID 19 effect Malaysian paddy industry? Adoption of green fertilizer a potential resolution," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(6), pages 8089-8129, June.
    9. Bouali Guesmi & Ahmed Yangui & Ibtissem Taghouti & José Maria Gil, 2022. "Trade-Off between Land Use Pattern and Technical Efficiency Performance: Evidence from Arable Crop Farming in Tunisia," Land, MDPI, vol. 12(1), pages 1-13, December.
    10. Baležentis, Tomas & De Witte, Kristof, 2015. "One- and multi-directional conditional efficiency measurement – Efficiency in Lithuanian family farms," European Journal of Operational Research, Elsevier, vol. 245(2), pages 612-622.
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    12. Lien, Gudbrand & Kumbhakar, Subal C. & Mishra, Ashok K. & Hardaker, J. Brian, 2022. "Does risk management affect productivity of organic rice farmers in India? Evidence from a semiparametric production model," European Journal of Operational Research, Elsevier, vol. 303(3), pages 1392-1402.

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    Keywords

    Productivity Analysis; Research Methods/ Statistical Methods; Risk and Uncertainty;
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