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Efficiency of Scottish Farms: A Stochastic Cost Frontier Analysis

  • Revoredo-Giha, Cesar
  • Milne, Catherine E.
  • Leat, Philip M.K.
  • Cho, Woong Je

In this paper the relative cost efficiency of Scottish farms is determined, and variables that explain this efficiency by farm type are identified and implications discussed. A panel dataset from the Farm Accounts Scheme (FAS) survey for the period 1997-2004 was used for the estimation. A cost efficiency indicator was measured using a fixed effect panel data regression. Further analysis, to explain the efficiency results, indicated the presence of important farm size and regional effects. However, other variables, whilst statistically significant, did not produce a consistent effect across the different farm types.

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File URL: http://purl.umn.edu/56633
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Article provided by Greek Association of Agricultural Economists in its journal Agricultural Economics Review.

Volume (Year): 10 (2009)
Issue (Month): 2 (June)
Pages:

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Handle: RePEc:ags:aergaa:56633
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  1. Wilson, Paul & Hadley, David & Asby, Carol, 2001. "The influence of management characteristics on the technical efficiency of wheat farmers in eastern England," Agricultural Economics, Blackwell, vol. 24(3), pages 329-338, March.
  2. Paul Wilson & Dave Hadley & Stephen Ramsden & Ioannis Kaltsas, 1998. "Measuring and Explaining Technical Efficiency in UK Potato Production," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(3), pages 294-305.
  3. Caves, Douglas W & Christensen, Laurits R & Tretheway, Michael W, 1980. "Flexible Cost Functions for Multiproduct Firms," The Review of Economics and Statistics, MIT Press, vol. 62(3), pages 477-81, August.
  4. Santarossa, John M., 2003. "Technical And Financial Sustainability In Scottish Agriculture," Miscellaneous Papers 11829, Agecon Search.
  5. Andrew Barnes, 2008. "Technical Efficiency Estimates of Scottish Agriculture: A Note," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(2), pages 370-376, 06.
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