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Modeling heterogeneity in production models: empirical evidence from individual farming in Poland
[Modellierung der Heterogenität der Faktorqualitäten in Produktionsfunktionen: Empirische Ergebnisse für landwirtschaftliche Familienbetriebe in Polen]

Author

Listed:
  • Hockmann, Heinrich
  • Pieniadz, Agata
  • Goraj, Lech

Abstract

This discussion paper deals with the estimation of a random coefficient model. The virtue of this approach is that it considers firm heterogeneity, which conventional SFA models do not. Applying the model to Polish farms, the results indicate that the conventional random and fixed effect models overestimate the inefficiency score. In addition, the reasons for inefficiency are analyzed. It is shown that despite the fragmentation of Polish agriculture, there is no evidence for scale inefficiency. Moreover, inefficiency could partly be attributed to factors, which affect the management input and requirements on farms.

Suggested Citation

  • Hockmann, Heinrich & Pieniadz, Agata & Goraj, Lech, 2007. "Modeling heterogeneity in production models: empirical evidence from individual farming in Poland [Modellierung der Heterogenität der Faktorqualitäten in Produktionsfunktionen: Empirische Ergebniss," IAMO Discussion Papers 109, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    • Handle: RePEc:zbw:iamodp:109
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    References listed on IDEAS

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    5. Bill Greene with Antonio Alvarez (Univ. of Oviedo) & Carlos Arias (Univ. of Leon), 2004. "Accounting For Unobservables In Production Models: Management And Inefficiency," Econometric Society 2004 Australasian Meetings 341, Econometric Society.
    6. Darla Munroe, 2001. "Economic Efficiency in Polish Peasant Farming: An International Perspective," Regional Studies, Taylor & Francis Journals, vol. 35(5), pages 461-471.
    7. 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.
    8. Laure Latruffe & Kelvin Balcombe & Sophia Davidova & Katarzyna Zawalinska, 2004. "Determinants of technical efficiency of crop and livestock farms in Poland," Applied Economics, Taylor & Francis Journals, vol. 36(12), pages 1255-1263.
    9. Schmitt, Gunther, 1989. "Farms, Farm Households, and Productivity of Resource Use in Agriculture," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 16(2), pages 257-284.
    10. Frohberg, Klaus & Hartmann, Monika, 1997. "Promoting CEA agricultural exports through association agreements with the EU: why it is not working," IAMO Discussion Papers 1, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
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    Citations

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    Cited by:

    1. Buchenrieder, Gertrud & Hanf, Jon Henrich & Pieniadz, Agata, 2009. "20 years of transition in the agri-food sector," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 58(07), pages 1-9, October.
    2. Supawat Rungsuriyawiboon & Heinrich Hockmann, 2015. "Adjustment costs and efficiency in Polish agriculture: a dynamic efficiency approach," Journal of Productivity Analysis, Springer, vol. 44(1), pages 51-68, August.
    3. Koester, Ulrich & Petrick, Martin, 2010. "Embedded institutions and the persistence of large farms in Russia [Die Bedeutung eingebetteter Institutionen für den Fortbestand landwirtschaftlicher Großbetriebe in Russland]," IAMO Discussion Papers 131, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    4. Elizabeth Ahikiriza & Jef Meensel & Xavier Gellynck & Ludwig Lauwers, 2021. "Heterogeneity in frontier analysis: does it matter for benchmarking farms?," Journal of Productivity Analysis, Springer, vol. 56(2), pages 69-84, December.
    5. repec:zbw:iamodp:94720 is not listed on IDEAS
    6. Tomasz Gerard Czekaj & Arne Henningsen, 2012. "Comparing Parametric and Nonparametric Regression Methods for Panel Data: the Optimal Size of Polish Crop Farms," IFRO Working Paper 2012/12, University of Copenhagen, Department of Food and Resource Economics.
    7. Cechura, Lukas & Hockmann, Heinrich, 2010. "Sources of economical growth in the Czech food processing," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 19(2), pages 169-182.

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    More about this item

    Keywords

    random component model; Poland; management; SFA; Random Parameter Modell; Polen; Management;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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