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Farms' Technical Inefficiencies in the Presence of Government Programs

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  • Serra, Teresa
  • Zilberman, David
  • Gil, Jose Maria

Abstract

We focus on determining the impacts of government programs on farms technical inefficiency levels. We use Kumbhakars (2002) stochastic frontier model that accounts for both production risks and risk preferences. Our theoretical framework shows that decoupled government transfers are likely to increase (decrease) DARA (IARA) farmers production inefficiencies if variable inputs are risk decreasing. However, the impacts of decoupled payments cannot be anticipated if variable inputs are risk increasing. We use farm-level data collected in Kansas to illustrate the model.

Suggested Citation

  • Serra, Teresa & Zilberman, David & Gil, Jose Maria, 2007. "Farms' Technical Inefficiencies in the Presence of Government Programs," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN 9952, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea07:9952
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    Cited by:

    1. Fabienne Femenia & Alexandre Gohin & Alain Carpentier, 2010. "The Decoupling of Farm Programs: Revisiting the Wealth Effect," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(3), pages 836-848.
    2. Dakpo, K Hervé & Latruffe, Laure, 2016. "Agri-environmental subsidies and French suckler cow farms’ technical efficiency accounting for GHGs," 90th Annual Conference, April 4-6, 2016, Warwick University, Coventry, UK 236339, Agricultural Economics Society.
    3. Jean Joseph Minviel & Kristof De Witte, 2016. "The influence of public subsidies on farm technical efficiency: A robust conditional nonparametric approach," Working Papers SMART - LERECO 16-10, INRA UMR SMART-LERECO.
    4. Minviel, Jean Joseph & De Witte, Kristof, 2017. "The influence of public subsidies on farm technical efficiency: A robust conditional nonparametric approach," European Journal of Operational Research, Elsevier, vol. 259(3), pages 1112-1120.
    5. repec:oup:ajagec:v:99:y:2017:i:3:p:783-799. is not listed on IDEAS
    6. Mohamed Ghali & Laure Latruffe & Karine Daniel, 2016. "Efficient Use of Energy Resources on French Farms: An Analysis through Technical Efficiency," Energies, MDPI, Open Access Journal, vol. 9(8), pages 1-15, July.
    7. 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.
    8. Amin Mugera & Michael Langemeier & Allen Featherstone, 2012. "Labor productivity convergence in the Kansas farm sector: a three-stage procedure using data envelopment analysis and semiparametric regression analysis," Journal of Productivity Analysis, Springer, vol. 38(1), pages 63-79, August.
    9. Laure Latruffe & Hervé Guyomard & Chantal Le Mouël, 2009. "The role of public subsidies on farms’ managerial efficiency: An application of a five-stage approach to France," Working Papers SMART - LERECO 09-05, INRA UMR SMART-LERECO.
    10. Laure Latruffe & K Hervé Dakpo & Yann Desjeux & Giffona Justinia Hanitravelo, 2017. "Effect of subsidies on technical efficiency excluding or including environmental outputs: An illustration with a sample of farms in the European Union," Working Papers SMART - LERECO 17-11, INRA UMR SMART-LERECO.
    11. Latruffe, Laure & Bravo-Ureta, Boris E. & Moreira, Victor H. & Desjeux, Yann & Dupraz, Pierre, 2011. "Productivity and Subsidies in European Union Countries: An Analysis for Dairy Farms Using Input Distance Frontiers," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114396, European Association of Agricultural Economists.
    12. Mugera, Amin W. & Langemeier, Michael R. & Featherstone, Allen M., 2012. "Labor Productivity Growth in the Kansas Farm Sector: A Tripartite Decomposition Using a Non-Parametric Approach," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 41(3), December.
    13. Bouali Guesmi & Teresa Serra & Allen Featherstone, 2015. "Technical efficiency of Kansas arable crop farms: a local maximum likelihood approach," Agricultural Economics, International Association of Agricultural Economists, vol. 46(6), pages 703-713, November.
    14. Fatima Lambarraa & Spiro Stefanou & Teresa Serra & José M. Gil, 2009. "The impact of the 1999 CAP reforms on the efficiency of the COP sector in Spain," Agricultural Economics, International Association of Agricultural Economists, vol. 40(3), pages 355-364, May.
    15. Douarin, Elodie & Latruffe, Laure, 2009. "Will the EU Single Area Payment decrease farm efficiency in the New Member States?," 2009 Conference, August 16-22, 2009, Beijing, China 51625, International Association of Agricultural Economists.

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    Keywords

    Farm Management;

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