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 language | English |
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Pages (from-to) | 3-25 |
Number of pages | 23 |
Journal | European Review of Agricultural Economics |
Volume | 45 |
Issue number | 1 |
Early online date | 10 Aug 2017 |
DOIs | |
Publication status | Published - 10 Aug 2017 |
Keywords
- dairy farms
- inefficiency persistance
- dynamic stochastic frontier