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Parametric Estimation Of Technical And Scale Efficiencies In Italian Citrus Farming

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  • Madau, Fabio A.

Abstract

Ray (1998) has proposed a model for estimating scale efficiency using a parametric approach. Following this methodology, a scale efficiency measure is obtained from the estimated parameters of the production frontier function and from the estimated scale elasticities. This study aims to estimate technical and scale efficiencies achieved by the Italian citrus fruit-growing farms. A stochastic frontier production model is considered in order to estimate technical and scale efficiencies. The analysis is expected to estimate the role of both technical and scale efficiencies in conditioning productivity. Particular attention is put on determining the (technical and scale) inefficiency effects associated with a set of structural and environmental variables that should affect efficiency and on the relationship between technical and scale efficiency scores. Empirical findings suggest that the greater portion of overall inefficiency in the sample might depend on producing below the production frontier than on operating under an inefficient scale. Indeed, room for improving technical efficiency is, on average, larger (29%) than the margin due to scale inefficiency (18.2%). Results also indicate a weak relationship between the two efficiency measures.

Suggested Citation

  • Madau, Fabio A., 2010. "Parametric Estimation Of Technical And Scale Efficiencies In Italian Citrus Farming," MPRA Paper 26818, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:26818
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    1. repec:spr:agfoec:v:5:y:2017:i:1:d:10.1186_s40100-017-0085-x is not listed on IDEAS
    2. Francesco Vidoli & Giancarlo Ferrara, 2015. "Analyzing Italian citrus sector by semi-nonparametric frontier efficiency models," Empirical Economics, Springer, vol. 49(2), pages 641-658, September.
    3. Madau, Fabio A., 2012. "Technical and scale efficiency in the Italian Citrus Farming: A comparison between Stochastic Frontier Analysis (SFA) and Data Envelopment Analysis(DEA) Models," MPRA Paper 41403, University Library of Munich, Germany.

    More about this item

    Keywords

    Technical efficiency Scale efficiency Stochastic Frontier Analysis Citrus farming Italy;

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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