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Estimation of technical efficiency in Czech agriculture with respect to firm heterogeneity

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  • Lukáš ČECHURA

    (Department of Agricultural Economics, Faculty of Economics and Management, Czech University of Life Sciences, Prague, Czech Republic)

Abstract

This paper deals with the estimation of technical efficiency in Czech agriculture with respect to significant firm heterogeneity. Two main questions are elaborated. The first concerns the choice of a proper model specification, distinguishing between technical inefficiency and firm heterogeneity. The second question is related to the level of technical efficiency. The results show that only those model specifications allowing for the capture of time-invariant firm heterogeneity may provide consistent estimates of technical efficiency. Specifically, the Random Parameters family of models is a superior specification for the estimation of technical efficiency in the analysis. Moreover, technical inefficiency is a significant phenomenon in Czech agriculture. The average level of technical efficiency is around 90% for agricultural companies.

Suggested Citation

  • Lukáš ČECHURA, 2010. "Estimation of technical efficiency in Czech agriculture with respect to firm heterogeneity," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 56(4), pages 183-191.
    • Handle: RePEc:caa:jnlage:v:56:y:2010:i:4:id:23-2010-agricecon
    DOI: 10.17221/23/2010-AGRICECON
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    Cited by:

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    2. Tamara RUDINSKAYA, 2017. "Heterogeneity and efficiency of food processing companies in the Czech Republic," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 63(9), pages 411-420.
    3. Jerzy Marzec & Andrzej Pisulewski, 2021. "Measurement of technical efficiency in the case of heterogeneity of technologies used between firms - Based on evidence from Polish crop farms," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 67(4), pages 152-161.
    4. Kristína KOČIŠOVÁ, 2015. "Application of the DEA on the measurement of efficiency in the EU countries," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 61(2), pages 51-62.
    5. Jan TYRYCHTR & Miloš ULMAN & Václav VOSTROVSKÝ, 2015. "Evaluation of the state of the Business Intelligence among small Czech farms," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 61(2), pages 63-71.
    6. Hana URBANCOVÁ & Helena ČERMÁKOVÁ, 2015. "The costs of Age Management in agricultural companies," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 61(1), pages 14-22.
    7. Lukáš Čechura, 2012. "Technical efficiency and total factor productivity in Czech agriculture," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 58(4), pages 147-156.
    8. Marta Arbelo-Pérez & Pilar Pérez-Gómez & Antonio Arbelo, 2023. "Profit efficiency and its determinants in the agricultural sector: A Bayesian approach," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 69(11), pages 436-445.
    9. F. Střeleček & J. Lososová & R. Zdeněk, 2011. "Economic results of agricultural enterprises in 2009," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 57(3), pages 103-117.
    10. Tamara Rudinskaya & Tomas Hlavsa & Martin Hruska, 2019. "Estimation of technical efficiency of Czech farms operating in less favoured areas," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 65(10), pages 445-453.
    11. Miloslav LAPKA & Eva CUDLÍNOVÁ & J. Sanford RIKOON & Martin PĚLUCHA & Viktor KVETOŇ, 2011. "Rural development in the context of agricultural "green" subsidies: Czech farmers' responses," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 57(6), pages 259-271.
    12. Marta Arbelo-Pérez & Pilar Pérez-Gómez & Antonio Arbelo, . "Profit efficiency and its determinants in the agricultural sector: A Bayesian approach," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 0.
    13. Vladimír Kostlivý & Zuzana Fuksová, 2019. "Technical efficiency and its determinants for Czech livestock farms," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 65(4), pages 175-184.
    14. Vladimír Kostlivý & Zuzana Fuksová & Tamara Rudinskaya, 2020. "Drivers of farm performance in Czech crop farms," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(7), pages 297-306.

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