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Efficiency in Damage Control Inputs: A Stochastic Production Frontier Approach

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  • Karagiannis, Giannis
  • Tsionas, Efthimios
  • Tzouvelekas, Vangelis

Abstract

The present paper extents the existing literature providing a theoretically consistent framework for measuring input-specific technical efficiency in damage control inputs within a stochastic production frontier model. The theoretical framework for modeling damage control agents is based on Fox and Weersink (1995) model specification that allows for increasing returns on damage control inputs. The empirical model accounts veterinary expenses as the damage control input and it is applied on a panel data set of sheep farms in Greece during the 1989-92 period. The results suggest that sheep farms in Greece are using inefficiently immunization and antibiotics in their flock as their average technical efficiency level was 72.82%. On the other hand, technical efficiency in conventional factors of production was found to be considerably higher on the average, 91.32%. Finally, our results indicate that farms that are technical efficient in the use of conventional inputs are also technical efficient in the use of damage control agents.

Suggested Citation

  • Karagiannis, Giannis & Tsionas, Efthimios & Tzouvelekas, Vangelis, 2005. "Efficiency in Damage Control Inputs: A Stochastic Production Frontier Approach," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24642, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaae05:24642
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    File URL: http://ageconsearch.umn.edu/record/24642/files/cp05ka11.pdf
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    References listed on IDEAS

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    1. Alfons Oude Lansink & Alain Carpentier, 2001. "Damage Control Productivity: An Input Damage Abatement Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(3), pages 11-22.
    2. Cowan, Robin & Gunby, Philip, 1996. "Sprayed to Death: Path Dependence, Lock-In and Pest Control Strategies," Economic Journal, Royal Economic Society, vol. 106(436), pages 521-542, May.
    3. Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 233-238, August.
    4. Glenn Fox & Alfons Weersink, 1995. "Damage Control and Increasing Returns," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(1), pages 33-39.
    5. Bruce A. Babcock & Erik Lichtenberg & David Zilberman, 1992. "Impact of Damage Control and Quality of Output: Estimating Pest Control Effectiveness," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(1), pages 163-172.
    6. Melanie Blackwell & Pagoulatos Angelos, 1992. "The Econometrics of Damage Control," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(4), pages 1040-1044.
    7. Erik Lichtenberg & David Zilberman, 1986. "The Econometrics of Damage Control: Why Specification Matters," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(2), pages 261-273.
    8. Babcock, Bruce A., 1992. "Effects of Uncertainty on Optimal Nitrogen Applications (The)," Staff General Research Papers Archive 10588, Iowa State University, Department of Economics.
    9. J. C. Headley, 1968. "Estimating the Productivity of Agricultural Pesticides," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 50(1), pages 13-23.
    10. Catalina Carrasco-Tauber & L. Joe Moffitt, 1992. "Damage Control Econometrics: Functional Specification and Pesticide Productivity," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(1), pages 158-162.
    11. Raymond J. Kopp, 1981. "The Measurement of Productive Efficiency: A Reconsideration," The Quarterly Journal of Economics, Oxford University Press, vol. 96(3), pages 477-503.
    12. Gershon Feder, 1979. "Pesticides, Information, and Pest Management under Uncertainty," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(1), pages 97-103.
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    Keywords

    Farm Management;

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