Assessing the Efficiency of Sheep Farming in Mountainous Areas of Greece. A Non Parametric Approach
The objective of this paper is the measurement and decomposition of the overall efficiency of sheep farming in mountainous areas of Greece. To this end, both a Constant Returns to Scale (CRS) and a Variable Returns to Scale (VRS) DEA model has been applied to a sample to 101 farms located in the mountainous areas of Epirus, Sterea, and Thessaly. The empirical results suggest: a) the average overall efficiency ratio in the sample is about 80 percent; b) the pure technical and the scale efficiency are of almost equal importance in the determination of the overall efficiency. Therefore, CRS DEA models will tend to underestimate systematically the level of pure technical efficiency; c) there are differences in the overall efficiency ratios across the three regions stemming mainly from differences in pure technical efficiency.
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