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Measuring and explaining scale efficiency with the parametric approach: the case of Greek tobacco growers

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Listed author(s):
  • Giannis Karagiannis
  • Alexander Sarris

Abstract

Estimates of technical and scale inefficiencies of tobacco farms in Greece during the period 1991-1995 are obtained by using the parametric approach. The degree of technical efficiency was found to be lower than the degree of scale efficiency and thus a greater portion of overall inefficiency is due to producing below the production frontier than to producing at an inefficient scale. In addition, the vast majority of farms in the sample exhibited suboptimal scale implying that output should be expanded to reach the optimal scale. Empirical results are provided to determine the impact of various socioeconomic, demographic, and geoclimatic indicators on technical and scale efficiency. Copyright 2005 International Association of Agricultural Economics.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1574-0864.2005.00084.x
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Article provided by International Association of Agricultural Economists in its journal Agricultural Economics.

Volume (Year): 33 (2005)
Issue (Month): s3 (November)
Pages: 441-451

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Handle: RePEc:bla:agecon:v:33:y:2005:i:s3:p:441-451
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Cited by:

  1. Subal Kumbhakar & Gudbrand Lien & J. Hardaker, 2014. "Technical efficiency in competing panel data models: a study of Norwegian grain farming," Journal of Productivity Analysis, Springer, vol. 41(2), pages 321-337, April.
  2. Madau, Fabio A., 2011. "Parametric Estimation of Technical and Scale Efficiencies in Italian Citrus Farming," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 12(1), January.
  3. Benjamin Tetteh Anang & Stefan Bäckman & Antonios Rezitis, 2016. "Does farm size matter? Investigating scale efficiency of peasant rice farmers in northern Ghana," Economics Bulletin, AccessEcon, vol. 36(4), pages 2275-2290.
  4. Madau, Fabio A., 2015. "Technical and Scale Efficiency in the Italian Citrus Farming: Comparison between SFA and DEA Approaches," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 16(2), June.
  5. Minviel, Jean Joseph & Latruffe, Laure, 2014. "Meta-regression analysis of the impact of agricultural subsidies on farm technical efficiency," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182767, European Association of Agricultural Economists.
  6. Skevas, Theodoros & Lansink, Alfons Oude & Stefanou, Spiro E., 2012. "Measuring technical efficiency in the presence of pesticide spillovers and production uncertainty: The case of Dutch arable farms," European Journal of Operational Research, Elsevier, vol. 223(2), pages 550-559.
  7. Tchale, Hardwick & Sauer, Johannes, 2007. "The efficiency of maize farming in Malawi. A bootstrapped translog frontier," Cahiers d'Economie et de Sociologie Rurales (CESR), INRA (French National Institute for Agricultural Research), vol. 82.
  8. Giannakis, Elias & Bruggeman, Adriana & Zoumides, Christos, 2016. "Determinants of agricultural labour productivity across the European regions," 149th Seminar, October 27-28, 2016, Rennes, France 244899, European Association of Agricultural Economists.
  9. Georgios D. Papagiannis, 2014. "Measurement of Efficiency in Greek Banking Industries in The Light of the Financial Crisis," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 19-38.
  10. Hardwick Tchale & Johannes Sauer, 2007. "The efficiency of maize farming in Malawi. A bootstrapped translog frontier," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 82, pages 33-56.
  11. Hardwick Tchale & Johannes Sauer, 2007. "The efficiency of maize farming in Malawi. A bootstrapped translog frontier," Post-Print hal-01201145, HAL.
  12. 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.
  13. Gómez-Limón, José A. & Sanchez-Fernandez, Gabriela, 2010. "Empirical evaluation of agricultural sustainability using composite indicators," Ecological Economics, Elsevier, vol. 69(5), pages 1062-1075, March.
  14. Ferrara, Giancarlo & Vidoli, Francesco, 2017. "Semiparametric stochastic frontier models: A generalized additive model approach," European Journal of Operational Research, Elsevier, vol. 258(2), pages 761-777.
  15. Henningsen, Arne & Kumbhakar, Subal C. & Lien, Gudbrand D., 2009. "Econometric Analysis of the Effects of Subsidies on Farm Production in Case of Endogenous Input Quantities," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49728, Agricultural and Applied Economics Association.

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