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Technical Efficiency of Italian Beef Cattle Production Under a Heteroscedastic Non-Neutral Production Frontier Approach

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  • Trestini, Samuele

Abstract

A stochastic production frontier has been estimated to measure the technical efficiency of an unbalanced panel of beef cattle farms extracted from the Farm Accountancy Data Network (FADN) databank of Veneto region in Italy. The technical efficiency is measured based on the estimation of a non-neutral and heteroscedastic production frontier. The model explains the average value of technical inefficiency as a linear function of the farm-specific variables (Battese and Coelli, 1995) and the input interaction variables (Huang and Liu, 1994). The inefficiency term is assumed to be distributed as a truncated normal with a heteroscedastic variance explained as a function of the farm-specific variables (Reifschneider and Stevenson, 1991). The average value of the farm technical efficiency is 78.6% ranging from a minimum of 30.6% to a maximum of 97.6%. The technical efficiency is positively related with the herd extension expressed as number of LSU (Livestock Unit), the value of beef production per LSU, the rate of purchased concentrated feed, and the percentage of concentrated feed used over the overall feed expenditure. Conversely the technical efficiency is negatively correlated with the intensification of the use of buildings investment and labour per LSU.

Suggested Citation

  • Trestini, Samuele, 2006. "Technical Efficiency of Italian Beef Cattle Production Under a Heteroscedastic Non-Neutral Production Frontier Approach," Conference Papers 6683, University of Minnesota, Center for International Food and Agricultural Policy.
  • Handle: RePEc:ags:umcicp:6683
    DOI: 10.22004/ag.econ.6683
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    References listed on IDEAS

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    1. 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.
    2. Boris E. Bravo-Ureta & Laszlo Rieger, 1991. "Dairy Farm Efficiency Measurement Using Stochastic Frontiers and Neoclassical Duality," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(2), pages 421-428.
    3. Luis R. Murillo‐Zamorano, 2004. "Economic Efficiency and Frontier Techniques," Journal of Economic Surveys, Wiley Blackwell, vol. 18(1), pages 33-77, February.
    4. Suzanne O’Neill & Alan Matthews, 2001. "Technical Change and Efficiency in Irish Agriculture," The Economic and Social Review, Economic and Social Studies, vol. 32(3), pages 263-284.
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    1. S. Samarajeewa & G. Hailu & S. R. Jeffrey & M. Bredahl, 2012. "Analysis of production efficiency of beef cow/calf farms in Alberta," Applied Economics, Taylor & Francis Journals, vol. 44(3), pages 313-322, January.
    2. Markus Lampe & Paul Sharp, 2015. "Just add milk: a productivity analysis of the revolutionary changes in nineteenth-century Danish dairying," Economic History Review, Economic History Society, vol. 68(4), pages 1132-1153, November.
    3. Qushim, Berdikul & Gillespie, Jeffrey M. & Nehring, Richard F., 2013. "Scale Economies And Economic Performance In Southeastern U.S. Cow-Calf Production," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 143009, Southern Agricultural Economics Association.
    4. Emilio Aguirre & Federico García-Suárez & Gabriela Sicilia, 2021. "Eficiencia técnica en la ganadería de carne bovina pastoril. Medición y exploración de sus determinantes en Uruguay," Documentos de Trabajo (working papers) 1321, Department of Economics - dECON.
    5. Garcia Suarez, F. & Quesada, G. Perez & Molina Ricetto, C., 2018. "Rangeland cattle production in Uruguay: single-output versus multi-output efficiency measures," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277178, International Association of Agricultural Economists.
    6. Wang, Tong & Park, Seong C. & Bevers, Stan & Teague, Richard & Cho, Jaesung, 2013. "Factors Affecting Cow-Calf Herd Performance and Greenhouse Gas Emissions," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(3), pages 1-22.

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    Livestock Production/Industries;

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