The effect of farm characteristics on the persistence of technical inefficiency: a case study in German dairy farming

Ioannis Skevas, Grigorios Emvalomatis, Bernhard Brümmer

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    7 Citations (Scopus)
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    Abstract

    This paper provides a way to include explanatory variables that may impact the persistence of farms’ technical efficiency by extending the conventional parametric dynamic efficiency model. Estimation of the model is performed using typical Bayesian techniques. The empirical findings reveal a high degree of inefficiency persistence through time, which is increasing in the amount of subsidies received, while older farmers exhibit higher inefficiency persistence, as opposed to younger ones, presumably due to their luck of motivation to adopt state-of-the-art technologies.
    Original languageEnglish
    Pages (from-to)3-25
    Number of pages23
    JournalEuropean Review of Agricultural Economics
    Volume45
    Issue number1
    Early online date10 Aug 2017
    DOIs
    Publication statusPublished - 10 Aug 2017

    Keywords

    • dairy farms
    • inefficiency persistance
    • dynamic stochastic frontier

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