Advanced Search
MyIDEAS: Login to save this paper or follow this series

Parametric Estimation Of Technical And Scale Efficiencies In Italian Citrus Farming

Contents:

Author Info

  • Madau, Fabio A.

Abstract

Ray (1998) has proposed a model for estimating scale efficiency using a parametric approach. Following this methodology, a scale efficiency measure is obtained from the estimated parameters of the production frontier function and from the estimated scale elasticities. This study aims to estimate technical and scale efficiencies achieved by the Italian citrus fruit-growing farms. A stochastic frontier production model is considered in order to estimate technical and scale efficiencies. The analysis is expected to estimate the role of both technical and scale efficiencies in conditioning productivity. Particular attention is put on determining the (technical and scale) inefficiency effects associated with a set of structural and environmental variables that should affect efficiency and on the relationship between technical and scale efficiency scores. Empirical findings suggest that the greater portion of overall inefficiency in the sample might depend on producing below the production frontier than on operating under an inefficient scale. Indeed, room for improving technical efficiency is, on average, larger (29%) than the margin due to scale inefficiency (18.2%). Results also indicate a weak relationship between the two efficiency measures.

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://mpra.ub.uni-muenchen.de/26818/
File Function: original version
Download Restriction: no

Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 26818.

as in new window
Length:
Date of creation: 18 Nov 2010
Date of revision:
Handle: RePEc:pra:mprapa:26818

Contact details of provider:
Postal: Schackstr. 4, D-80539 Munich, Germany
Phone: +49-(0)89-2180-2219
Fax: +49-(0)89-2180-3900
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC

Related research

Keywords: Technical efficiency Scale efficiency Stochastic Frontier Analysis Citrus farming Italy;

Other versions of this item:

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. Bert Balk, 2001. "Scale Efficiency and Productivity Change," Journal of Productivity Analysis, Springer, Springer, vol. 15(3), pages 159-183, May.
  2. Stijn Reinhard & C. A. Knox Lovell & Geert Thijssen, 2002. "Analysis of Environmental Efficiency Variation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 84(4), pages 1054-1065.
  3. Pitt, Mark M. & Lee, Lung-Fei, 1981. "The measurement and sources of technical inefficiency in the Indonesian weaving industry," Journal of Development Economics, Elsevier, Elsevier, vol. 9(1), pages 43-64, August.
  4. Cisilino, Federica & Madau, Fabio A., 2007. "Organic and Conventional Farming: a Comparison Analysis through the Italian FADN," MPRA Paper 21786, University Library of Munich, Germany.
  5. 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, American Statistical Association, vol. 9(3), pages 279-86, July.
  6. George E. Battese & Greg S. Corra, 1977. "Estimation Of A Production Frontier Model: With Application To The Pastoral Zone Of Eastern Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 21(3), pages 169-179, December.
  7. Luis Orea, 2002. "Parametric Decomposition of a Generalized Malmquist Productivity Index," Journal of Productivity Analysis, Springer, Springer, vol. 18(1), pages 5-22, July.
  8. 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, Elsevier, vol. 19(2-3), pages 233-238, August.
  9. Madau, Fabio A., 2007. "Technical Efficiency in Organic and Conventional Farming: Evidence from Italian Cereal Farms," Agricultural Economics Review, Greek Association of Agricultural Economists, Greek Association of Agricultural Economists, vol. 8(1), January.
  10. Kodde, David A & Palm, Franz C, 1986. "Wald Criteria for Jointly Testing Equality and Inequality Restriction s," Econometrica, Econometric Society, Econometric Society, vol. 54(5), pages 1243-48, September.
  11. Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-44, June.
  12. Battese, George E. & Corra, Greg S., 1977. "Estimation Of A Production Frontier Model: With Application To The Pastoral Zone Of Eastern Australia," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, Australian Agricultural and Resource Economics Society, vol. 21(03), December.
  13. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, Elsevier, vol. 6(1), pages 21-37, July.
  14. 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, Springer, vol. 20(2), pages 325-32.
  15. Giannis Karagiannis & Vangelis Tzouvelekas, . "Explaining Output Growth With A Heteroscedastic Non-Neutral Production Frontier: The Case Of Sheep Farms In Greece," Working Papers, University of Crete, Department of Economics 0409, University of Crete, Department of Economics.
  16. Tim Coelli & Sanzidur Rahman & Colin Thirtle, 2002. "Technical, Allocative, Cost and Scale Efficiencies in Bangladesh Rice Cultivation: A Non-parametric Approach," Journal of Agricultural Economics, Wiley Blackwell, Wiley Blackwell, vol. 53(3), pages 607-626.
  17. Forsund, Finn R & Hjalmarsson, Lennart, 1979. "Generalised Farrell Measures of Efficiency: An Application to Milk Processing in Swedish Dairy Plants," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 89(354), pages 294-315, June.
  18. Alvarez, Antonio & Arias, Carlos, 2004. "Technical efficiency and farm size: a conditional analysis," Agricultural Economics, Blackwell, Blackwell, vol. 30(3), pages 241-250, May.
  19. 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, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 32(3), pages 715-23, August.
  20. Thiele, Holger & Brodersen, Claus M, 1999. "Differences in Farm Efficiency in Market and Transition Economies: Empirical Evidence from West to East Germany," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 26(3), pages 331-47, August.
  21. Banker, Rajiv D., 1984. "Estimating most productive scale size using data envelopment analysis," European Journal of Operational Research, Elsevier, Elsevier, vol. 17(1), pages 35-44, July.
  22. A. Parikh & K. Shah, 1994. "Measurement Of Technical Efficiency In The North-West Frontier Province Of Pakistan," Journal of Agricultural Economics, Wiley Blackwell, Wiley Blackwell, vol. 45(1), pages 132-138.
  23. Giannis Karagiannis & Alexander Sarris, 2005. "Measuring and explaining scale efficiency with the parametric approach: the case of Greek tobacco growers," Agricultural Economics, International Association of Agricultural Economists, vol. 33(s3), pages 441-451, November.
  24. Featherstone, Allen M. & Langemeier, Michael R. & Ismet, Mohammad, 1997. "A Nonparametric Analysis Of Efficiency For A Sample Of Kansas Beef Cow Farms," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, Southern Agricultural Economics Association, vol. 29(01), July.
  25. Boris Bravo-Ureta & Daniel Solís & Víctor Moreira López & José Maripani & Abdourahmane Thiam & Teodoro Rivas, 2007. "Technical efficiency in farming: a meta-regression analysis," Journal of Productivity Analysis, Springer, Springer, vol. 27(1), pages 57-72, February.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Madau, Fabio A., 2012. "Technical and scale efficiency in the Italian Citrus Farming: A comparison between Stochastic Frontier Analysis (SFA) and Data Envelopment Analysis(DEA) Models," MPRA Paper 41403, University Library of Munich, Germany.

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:pra:mprapa:26818. 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: (Ekkehart Schlicht).

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.