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Explaining Output Growth of Sheep Farms in Greece: A Parametric Primal Approach

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Author Info
Giannis Karagiannis () (Department of Economics, University of Macedonia, Greece)
Vangelis Tzouvelekas () (Department of Economics, University of Crete, Greece)

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Abstract

This paper provides a parametric decomposition of output growth of sheep farms in Greece using an integrated primal approach, in which output growth is attributed to input growth (size effect), changes in technical efficiency, technical change, and the scale effect. The empirical results indicate that the scale effect, which has not been taken into account by previous studies, has a significant role in explaining output growth and TFP changes. It was found that during the period 1989-92 it caused a 0.61% output slowdown and it was the second main source of TFP changes after technical progress. Consequently, there would have been significant biases in TFP measurement by not accounting for the scale effect.

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Paper provided by University of Crete, Department of Economics in its series Working Papers with number 0306.

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Length: 24 pages
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Handle: RePEc:crt:wpaper:0306

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  1. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July. [Downloadable!] (restricted)
  2. Battese, George E. & Coelli, Tim J., 1988. "Prediction of firm-level technical efficiencies with a generalized frontier production function and panel data," Journal of Econometrics, Elsevier, vol. 38(3), pages 387-399, July. [Downloadable!] (restricted)
  3. Giannis Karagiannis & Vangelis Tzouvelekas, . "Self-Dual Stochastic Production Frontiers and Decomposition of Output Growth: The Case of Olive Growing Farms in Greece," Working Papers 9913, University of Crete, Department of Economics.
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  4. Giannakas, Konstantinos & Tran, Kien C & Tzouvelekas, Vangelis, 2000. "Efficiency, Technological Change and Output Growth in Greek Olive Growing Farms: A Box-Cox Approach," Applied Economics, Taylor and Francis Journals, vol. 32(7), pages 909-16, June. [Downloadable!] (restricted)
  5. Kodde, David A & Palm, Franz C, 1986. "Wald Criteria for Jointly Testing Equality and Inequality Restriction s," Econometrica, Econometric Society, vol. 54(5), pages 1243-48, September. [Downloadable!] (restricted)
  6. Reifschneider, David & Stevenson, Rodney, 1991. "Systematic Departures from the Frontier: A Framework for the Analysis of Firm Inefficiency," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 32(3), pages 715-23, August. [Downloadable!] (restricted)
  7. Paul W. Bauer, 1988. "Decomposing TFP growth in the presence of cost inefficiency, nonconstant returns to scale, and technological progress," Working Paper 8813, Federal Reserve Bank of Cleveland. [Downloadable!]
  8. Chan, M W Luke & Mountain, Dean C, 1983. "Economies of Scale and the Tornqvist Discrete Measure of Productivity Growth," The Review of Economics and Statistics, MIT Press, vol. 65(4), pages 663-67, November. [Downloadable!] (restricted)
  9. Kumbhakar, Subal C & Ghosh, Soumendra & McGuckin, J Thomas, 1991. "A Generalized Production Frontier Approach for Estimating Determinants of Inefficiency in U.S. Dairy Farms," Journal of Business & Economic Statistics, American Statistical Association, vol. 9(3), pages 279-86, July.
  10. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-32.
  11. Park, Seung-Rok & Kwon, Jene K, 1995. "Rapid Economic Growth with Increasing Returns to Scale and Little or No Productivity Growth," The Review of Economics and Statistics, MIT Press, vol. 77(2), pages 332-51, May. [Downloadable!] (restricted)
  12. Coelli, T. J., 1992. "A computer program for frontier production function estimation : Frontier version 2.0," Economics Letters, Elsevier, vol. 39(1), pages 29-32, May. [Downloadable!] (restricted)
  13. Subal Kumbhakar & M. Denny & M. Fuss, 2000. "Estimation and decomposition of productivity change when production is not efficient: a paneldata approach," Econometric Reviews, Taylor and Francis Journals, vol. 19(4), pages 312-320. [Downloadable!] (restricted)
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