Analyzing the impact of direct subsidies on the performance of the Greek Olive Farms with a non-monotonic efficiency effects model
We analyse the impacts of the CAP reforms on technical efficiency of Greek olive farms. We use a production frontier function and a non-monotonic inefficiency effects model which incorporates the influences of exogenous variables on the mean and the variances of farm efficiency. We formulate policy variables (e.g. the direct subsidies) and farm characteristics as explanatory variables in the inefficiency effects model. We use the 1995-2004 FADN data to estimate the production frontier, to derive technical efficiency, and to determine the effects of the explanatory variables. The study shows that the 10-year average technical efficiency of olive farms is 69%. Direct transfers have a negative and monotonic effect on technical efficiency, while the degree of specialization has a non-monotonic effect on technical efficiency.
|Date of creation:||2008|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.eaae.org|
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Giannis Karagiannis & Vangelis Tzouvelekas, 2005.
"A Flexible Time-Varying Specification of the Technical Inefficiency Effects Model,"
0517, University of Crete, Department of Economics.
- Giannis Karagiannis & Vangelis Tzouvelekas, 2007. "A flexible time-varying specification of the technical inefficiency effects model," Empirical Economics, Springer, vol. 33(3), pages 531-540, November.
- Hennessy, David A., 1998.
"The Production Effects of Agricultural Income Support Policies Under Uncertainty,"
Staff General Research Papers
1207, Iowa State University, Department of Economics.
- David A. Hennessy, 1998. "The Production Effects of Agricultural Income Support Policies under Uncertainty," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 46-57.
- Teresa Serra & Barry K. Goodwin & Allen M. Featherstone, 2005. "Agricultural Policy Reform and Off-farm Labour Decisions," Journal of Agricultural Economics, Wiley Blackwell, vol. 56(2), pages 271-285.
- Wang, Hung-Jen, 2002.
"Heteroscedasticity and non-monotonic efficiency effects of a stochastic frontier model,"
31076, University Library of Munich, Germany.
- Hung-Jen Wang, 2002. "Heteroscedasticity and Non-Monotonic Efficiency Effects of a Stochastic Frontier Model," Journal of Productivity Analysis, Springer, vol. 18(3), pages 241-253, November.
- Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-32.
When requesting a correction, please mention this item's handle: RePEc:ags:eaae08:43612. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.