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Comparative Analysis of Technical Efficiency in European Agriculture

  • Bakucs, Lajos Zoltan
  • Ferto, Imre
  • Latruffe, Laure
  • Desjeux, Yann
  • Soboh, Rafat
  • Dolman, Mark

Technical efficiency has long been analysed as a measure of farm performance, however most studies are restricted to a single country case. This paper presents a comparative analysis of field crop and dairy farm performance across eight EU countries, including two New Member States (NMS), focusing on long run stability and mobility patterns. The main research question is how relative performance of farms fluctuates over time, i.e. whether poorly performing farms remain always inefficient whilst some farms are always very efficient. Results show that on average 60% of farms maintain their efficiency ranking in two consecutive years, whilst 20% improve and 20% worsen their positions, for all countries. Due to the unstable economic conditions, farms in NMS are more mobile than those in EU15.

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File URL: http://purl.umn.edu/114235
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Paper provided by European Association of Agricultural Economists in its series 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland with number 114235.

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Date of creation: 2011
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Handle: RePEc:ags:eaae11:114235
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  1. Fogarasi, Jozsef & Latruffe, Laure, 2009. "Farm performance and support in Central and Western Europe: a comparison of Hungary and France," 83rd Annual Conference, March 30-April 1, 2009, Dublin, Ireland 51053, Agricultural Economics Society.
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  6. Caudill, Steven B & Ford, Jon M & Gropper, Daniel M, 1995. "Frontier Estimation and Firm-Specific Inefficiency Measures in the Presence of Heteroscedasticity," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(1), pages 105-11, January.
  7. Boris Bravo-Ureta & Daniel Solís & Víctor Moreira López & José Maripani & Abdourahmane Thiam & Teodoro Rivas, 2007. "Technical efficiency in farming: a meta-regression analysis," Journal of Productivity Analysis, Springer, vol. 27(1), pages 57-72, February.
  8. Karin Larsén, 2010. "Effects of machinery-sharing arrangements on farm efficiency: evidence from Sweden," Agricultural Economics, International Association of Agricultural Economists, vol. 41(5), pages 497-506, 09.
  9. Lajos Zoltan Bakucs & Laure Latruffe & Imre Fertő & Jozsef Fogarasi, 2010. "The impact of EU accession on farms' technical efficiency in Hungary," Post-Communist Economies, Taylor & Francis Journals, vol. 22(2), pages 165-175.
  10. 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.
  11. Geweke, John & Marshall, Robert C & Zarkin, Gary A, 1986. "Mobility Indices in Continuous Time Markov Chains," Econometrica, Econometric Society, vol. 54(6), pages 1407-23, November.
  12. André Decoster & Sergio Perelman, 2011. "Introduction," Reflets et perspectives de la vie économique, De Boeck Université, vol. 0(4), pages 5-11.
  13. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
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