TY - JOUR
T1 - A reduced-form model for dynamic efficiency measurement
T2 - Application to dairy farms in Germany and the Netherlands
AU - Emvalomatis, Grigorios
AU - Stefanou, Spiro E.
AU - Oude Lansink, Alfons
PY - 2011/1/1
Y1 - 2011/1/1
N2 - The stochastic distance function model is extended to allow for the inefficiency component of the error term to be autocorrelated, as implied by a dynamic model of firm behavior. The autocorrelation parameter can then be interpreted as a measure of the persistence of inefficiency. The model is viewed from a state-space perspective, and Kalman filtering techniques are proposed for estimation. The model is applied to two panels of dairy farms from Germany and the Netherlands. The results suggest a very high degree of persistence of inefficiency through time.
AB - The stochastic distance function model is extended to allow for the inefficiency component of the error term to be autocorrelated, as implied by a dynamic model of firm behavior. The autocorrelation parameter can then be interpreted as a measure of the persistence of inefficiency. The model is viewed from a state-space perspective, and Kalman filtering techniques are proposed for estimation. The model is applied to two panels of dairy farms from Germany and the Netherlands. The results suggest a very high degree of persistence of inefficiency through time.
UR - http://www.scopus.com/inward/record.url?scp=79952940996&partnerID=8YFLogxK
U2 - 10.1093/ajae/aaq125
DO - 10.1093/ajae/aaq125
M3 - Article
AN - SCOPUS:79952940996
SN - 0002-9092
VL - 93
SP - 161
EP - 174
JO - American Journal of Agricultural Economics
JF - American Journal of Agricultural Economics
IS - 1
ER -