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A dynamic stochastic frontier approach with persistent and transient inefficiency and unobserved heterogeneity

Author

Listed:
  • Jean-Joseph Minviel

    (UMRH - Unité Mixte de Recherche sur les Herbivores - UMR 1213 - VAS - VetAgro Sup - Institut national d'enseignement supérieur et de recherche en alimentation, santé animale, sciences agronomiques et de l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Timo Sipiläinen

    (Helsingin yliopisto = Helsingfors universitet = University of Helsinki)

Abstract

This article introduces a dynamic stochastic frontier analysis (SFA) framework with unobserved heterogeneity, persistent and transient inefficiency effects, based on recent advances in the SFA literature. The newly developed dynamic frontier model is applied on a sample of French crop-livestock farms. The estimates provide useful insights for the estimation of the technical efficiency scores as well as for the analysis of the associations of contextual drivers, such as public subsidies and indebtedness, with technical efficiency.

Suggested Citation

  • Jean-Joseph Minviel & Timo Sipiläinen, 2021. "A dynamic stochastic frontier approach with persistent and transient inefficiency and unobserved heterogeneity," Post-Print hal-03236127, HAL.
    • Handle: RePEc:hal:journl:hal-03236127
    DOI: 10.1111/agec.12636
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    Cited by:

    1. K Hervé Dakpo & Laure Latruffe & Yann Desjeux & Philippe Jeanneaux, 2022. "Modeling heterogeneous technologies in the presence of sample selection: The case of dairy farms and the adoption of agri‐environmental schemes in France," Agricultural Economics, International Association of Agricultural Economists, vol. 53(3), pages 422-438, May.
    2. Xiaochun Zhao & Huixin Xu & Qun Sun, 2022. "Research on China’s Carbon Emission Efficiency and Its Regional Differences," Sustainability, MDPI, vol. 14(15), pages 1-14, August.
    3. Goh, Kim Huat & See, Kok Fong, 2023. "Incorporating nonrevenue water in the efficiency assessment of water supply utilities: A parametric enhanced hyperbolic distance function," Utilities Policy, Elsevier, vol. 81(C).
    4. Rosdiana Sijabat, 2023. "The Association between Foreign Investment and Gross Domestic Product in Ten ASEAN Countries," Economies, MDPI, vol. 11(7), pages 1-21, July.
    5. Andrew P. Barnes, 2023. "The role of family life‐cycle events on persistent and transient inefficiencies in less favoured areas," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(1), pages 295-315, February.
    6. Haokun Wang & Hong Chen & Tuyen Thi Tran & Shuai Qin, 2022. "An Analysis of the Spatiotemporal Characteristics and Diversity of Grain Production Resource Utilization Efficiency under the Constraint of Carbon Emissions: Evidence from Major Grain-Producing Areas ," IJERPH, MDPI, vol. 19(13), pages 1-25, June.
    7. Guoting Yang & Jing Li & Zhen Liu & Yitao Zhang & Xiangbo Xu & Hong Zhang & Yan Xu, 2022. "Research Trends in Crop–Livestock Systems: A Bibliometric Review," IJERPH, MDPI, vol. 19(14), pages 1-14, July.

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