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Integrated spatial dependence into Stochastic Frontier Analysis

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  • Areal, Francisco Jose
  • Balcombe, Kelvin
  • Tiffin, Richard

Abstract

An approach to incorporate spatial dependence into stochastic frontier analysis is developed and applied to a sample of 215 dairy farms in England and Wales. A number of alternative specifications for the spatial weight matrix are used to analyse the effect of these on the estimation of spatial dependence. Estimation is conducted using a Bayesian approach and results indicate that spatial dependence is present when explaining technical inefficiency.

Suggested Citation

  • Areal, Francisco Jose & Balcombe, Kelvin & Tiffin, Richard, 2012. "Integrated spatial dependence into Stochastic Frontier Analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 56(4), pages 1-21, December.
  • Handle: RePEc:ags:aareaj:229821
    DOI: 10.22004/ag.econ.229821
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    File URL: http://ageconsearch.umn.edu/record/229821/files/j.1467-8489.2012.00597.x.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Frederic Ang & Pieter Jan Kerstens, 2016. "To Mix or Specialise? A Coordination Productivity Indicator for English and Welsh farms," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(3), pages 779-798, September.
    2. repec:bla:agecon:v:49:y:2018:i:2:p:213-223 is not listed on IDEAS
    3. Pede, Valerien O. & McKinley, Justin & Singbo, Alphonse & Kajisa, Kei, 2015. "Spatial Dependency of Technical Efficiency in Rice Farming: The Case of Bohol, Philippines," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205456, Agricultural and Applied Economics Association.
    4. repec:sag:seajad:v:14:y:2017:i:2:p:103-125 is not listed on IDEAS
    5. repec:kap:jproda:v:49:y:2018:i:2:d:10.1007_s11123-018-0529-7 is not listed on IDEAS
    6. repec:ags:phajad:265768 is not listed on IDEAS
    7. Vidoli, Francesco & Canello, Jacopo, 2016. "Controlling for spatial heterogeneity in nonparametric efficiency models: An empirical proposal," European Journal of Operational Research, Elsevier, vol. 249(2), pages 771-783.
    8. repec:bla:agecon:v:49:y:2018:i:3:p:301-312 is not listed on IDEAS
    9. Orea, Luis & Álvarez, Inmaculada C., 2017. "A new stochastic frontier model with cross-sectional effects in both noise and inefficiency terms," Efficiency Series Papers 2017/04, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    10. Federico Belotti & Giuseppe Ilardi & Andrea Piano Mortari, 2019. "Estimation of Stochastic Frontier Panel Data Models with Spatial Inefficiency," CEIS Research Paper 459, Tor Vergata University, CEIS, revised 30 May 2019.

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