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Farm Heterogeneity and Efficiency in Polish Agriculture: A Stochastic Frontier Analysis

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  • Hockmann, Heinrich
  • Pieniadz, Agata

Abstract

This paper deals with the estimation of a random coefficient model. The virtue of this approach is that it considers firm heterogeneity, which conventional SFA models do not. Applying the model to Polish farms, the results indicate that the conventional random and fixed effect models overestimate the inefficiency score. In addition, the reasons for inefficiency are analysed. It is shown that despite the fragmentation of Polish agriculture, there is no evidence for scale inefficiency. Moreover, inefficiency could partly be attributed to factors, which affect the management input and requirements on farms.

Suggested Citation

  • Hockmann, Heinrich & Pieniadz, Agata, 2007. "Farm Heterogeneity and Efficiency in Polish Agriculture: A Stochastic Frontier Analysis," 104th Seminar, September 5-8, 2007, Budapest, Hungary 7823, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa104:7823
    DOI: 10.22004/ag.econ.7823
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    Cited by:

    1. Cechura, Lukas, "undated". "Technological change in the Czech food processing industry: What did we experience in the last decade?," 131st Seminar, September 18-19, 2012, Prague, Czech Republic 135782, European Association of Agricultural Economists.
    2. 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.
    3. Qirui Li & T. S. Amjath-Babu & Peter Zander & Zhen Liu & Klaus Müller, 2016. "Sustainability of Smallholder Agriculture in Semi-Arid Areas under Land Set-aside Programs: A Case Study from China’s Loess Plateau," Sustainability, MDPI, vol. 8(4), pages 1-17, April.
    4. 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.
    5. Laure Latruffe & Sophia Davidova & Kelvin Balcombe, 2008. "Productivity change in Polish agriculture: an illustration of a bootstrapping procedure applied to Malmquist indices," Post-Communist Economies, Taylor & Francis Journals, vol. 20(4), pages 449-460.
    6. 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.
    7. Cechura, Lukas & Hockmann, Heinrich, 2011. "Efficiency and Heterogeneity in Czech Food Processing Industry," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114314, European Association of Agricultural Economists.
    8. Nadia Belhaj Hassine, 2008. "Technology Diffusion, International Spillovers and Human Capital in the Mediterranean Agricultural Sector," Working Papers 405, Economic Research Forum, revised 06 Jan 2008.
    9. 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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