Advanced Search
MyIDEAS: Login

Comparative efficiency of producer cooperatives and conventional firms in a sample of quasi-twin companies

Contents:

Author Info

  • MG. Brandano
  • C. Detotto

    ()

  • M. Vannini

    ()

Abstract

We investigate the comparative technical efficiency of producer cooperatives (PCs) and conventional firms (CFs) by looking at the performance of a mixed sample of Sardinian wine producing companies over the period 2004-2009. Thanks to the similarity of the habitats in which the firms operate, the peculiarities of the production environment, and the careful measurement of some key inputs through suitable aggregation of accounting data, the observed units are “twins” in all non- organizational respects, providing one natural setting for comparative work. The analysis is carried out in two steps - in the first, technical efficiency indicators for each firm in each year are calculated using Data Envelopment Analysis (DEA) with reference to a common production frontier. Subsequently, the measured efficiency scores become the dependent variables of a pooled truncated maximum likelihood regression in which we control for external covariates and firm type. To assess the procedure’s appropriateness, we test whether the separability condition that the support of the output variables does not depend on the set of external variables is satisfied. Moreover, a double bootstrap algorithm is run to compute valid standard errors and confidence intervals of the coefficients estimates. According to our findings cooperatives are less technically efficient than their capitalist counterparts and displays decreasing returns to scale. Both results are particularly worrying in light of the main challenges (liberalization of EU planting rights and climate changes) facing the wine industry in the near future.

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://crenos.unica.it/crenos/node/4326
Download Restriction: no

File URL: http://crenos.unica.it/crenos/sites/all/modules/pubdlcnt/pubdlcnt.php?file=http://crenos.unica.it/crenos/sites/default/files/WP12-28.pdf&nid=4326
Download Restriction: no

Bibliographic Info

Paper provided by Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia in its series Working Paper CRENoS with number 201228.

as in new window
Length:
Date of creation: 2012
Date of revision:
Handle: RePEc:cns:cnscwp:201228

Contact details of provider:
Postal: Via S. Giorgio 12, I-09124 Cagliari
Phone: +70/6756406
Fax: +70/6756402
Email:
Web page: http://www.crenos.unica.it/
More information through EDIRC

Related research

Keywords: double bootstrap; data envelopment analysis; comparative firm efficiency;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

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. Ferrantino Michael J. & Ferrier Gary D. & Linvill Carl B., 1995. "Organizational Form and Efficiency: Evidence from Indian Sugar Manufacturing," Journal of Comparative Economics, Elsevier, vol. 21(1), pages 29-53, August.
  2. Eisenberg, Theodore & Sundgren, Stefan & Wells, Martin T., 1998. "Larger board size and decreasing firm value in small firms," Journal of Financial Economics, Elsevier, vol. 48(1), pages 35-54, April.
  3. Piesse, Jenifer & Doyer, Tobias & Thirtle, Colin & Vink, Nick, 2005. "The changing role of grain cooperatives in the transition to competitive markets in South Africa," Journal of Comparative Economics, Elsevier, vol. 33(1), pages 197-218, March.
  4. Jensen, Michael C, 1993. " The Modern Industrial Revolution, Exit, and the Failure of Internal Control Systems," Journal of Finance, American Finance Association, vol. 48(3), pages 831-80, July.
  5. Simar, Leopold & Wilson, Paul W., 2007. "Estimation and inference in two-stage, semi-parametric models of production processes," Journal of Econometrics, Elsevier, vol. 136(1), pages 31-64, January.
  6. JONES, Derek C. & SVEJNAR, Jan, . "Participation, profit sharing, worker ownership and efficiency in Italian producer cooperatives," CORE Discussion Papers RP -681, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  7. Bonin, John P & Jones, Derek C & Putterman, Louis, 1993. "Theoretical and Empirical Studies of Producer Cooperatives: Will Ever the Twain Meet?," Journal of Economic Literature, American Economic Association, vol. 31(3), pages 1290-320, September.
  8. Ornella Wanda Maietta & Vania Sena, 2010. "Financial Constraints And Technical Efficiency: Some Empirical Evidence For Italian Producers' Cooperatives," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 81(1), pages 21-38, 03.
  9. Pencavel, John & Craig, Ben, 1994. "The Empirical Performance of Orthodox Models of the Firm: Conventional Firms and Worker Cooperatives," Journal of Political Economy, University of Chicago Press, vol. 102(4), pages 718-44, August.
  10. Mosheim, Roberto, 2002. "Organizational Type and Efficiency in the Costa Rican Coffee Processing Sector," Journal of Comparative Economics, Elsevier, vol. 30(2), pages 296-316, June.
  11. Kelvin Balcombe & Iain Fraser & Laure Latruffe & Mizanur Rahman & Laurence Smith, 2008. "An application of the DEA double bootstrap to examine sources of efficiency in Bangladesh rice farming," Applied Economics, Taylor & Francis Journals, vol. 40(15), pages 1919-1925.
  12. Zhang, Anming & Zhang, Yimin & Zhao, Ronald, 2001. "Impact of Ownership and Competition on the Productivity of Chinese Enterprises," Journal of Comparative Economics, Elsevier, vol. 29(2), pages 327-346, June.
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:cns:cnscwp:201228. 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: (Antonello Pau).

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.