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Applying regression quantiles to farm efficiency estimation

Author

Listed:
  • Kaditi, Eleni A.
  • Nitsi, Elisavet I.

Abstract

This article is concerned with the methodological question of frontier production functions estimation for agriculture, and the appropriateness of regression quantiles, as a useful semi-parametric approach. Better insights are reached using the proposed methodology that provides robust farm efficiency scores estimates. Using the 2007 Farm Accountancy Data Network (FADN) data for Greece, analysis shows that the distribution of efficiency scores is closer to normality when employing regression quantiles, while underestimation of efficiency obtained by other parametric or deterministic methods based on the conditional mean can be avoided. The results further suggest that government support aimed at enhancing farms viability should be directed towards payments decoupled from output or prices, as well as rural development payments that affect productivity in a uniform way.

Suggested Citation

  • Kaditi, Eleni A. & Nitsi, Elisavet I., 2010. "Applying regression quantiles to farm efficiency estimation," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61081, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea10:61081
    DOI: 10.22004/ag.econ.61081
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    Cited by:

    1. Kehinde, Ayodeji Damilola, 2021. "The Distributional Impact of Non-Farm Income on Output and Farm Income of Cassava Farmers in Southwestern Nigeria," 2021 Conference, August 17-31, 2021, Virtual 315857, International Association of Agricultural Economists.
    2. Monje, Juan Cabas & Sidhoum, Amer Ait & Gil, Jose M., 2021. "Investigating Technical Efficiency of Spanish Pig Farming: A Quantile Regression Approach," 2021 Conference, August 17-31, 2021, Virtual 315196, International Association of Agricultural Economists.
    3. Tomasz Żyłowski & Jerzy Kozyra, 2023. "Crop Cultivation Efficiency and GHG Emission: SBM-DEA Model with Undesirable Output Approach," Sustainability, MDPI, vol. 15(13), pages 1-18, July.

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