This empirical application investigates the eventual presence of credit constraints using a panel of French farmers. The credit-constrained profit maximization model proposed by F�re, Grosskopf, and Lee is extended in three ways. First, we rephrase the model in terms of directional distance functions to allow duality with the profit function. Second, we model credit constraints in the short-run and investment constraints in the long-run using short- and long-run profit functions. Third, we lag the expenditure constraint one year to account for the separation between planning and production. We find empirical evidence of credit and investment constraints. Financially unconstrained farmers are larger, perform better, and seem to benefit from a virtuous circle where access to financial markets allows better productive choices. Copyright 2006, Oxford University Press.

Productivity analysis has been an important avenue for economic research. Therefore, medleys of quantitative techniques have been proposed to operationalize productivity analysis. In this article, an extended by‐production model is discussed and applied to ensure a link between the production and the pollution‐generating subtechnologies. The corresponding dual formulations are provided to interpret the economic role of pollution‐generating inputs in the subtechnologies. Finally, we integrate the proposed model with the environmental Luenberger–Hicks–Moorsteen productivity indicator based upon input and output directional distance functions. The proposed model is applied to measure the green economic growth of agricultural sectors of the selected European countries.

Energy efficiency measurement is crucial when planning energy reduction policies. However, decision makers understandably will be reluctant to act in the absence of solid data and results supporting a policy position. The main objective of this paper is to propose an alternative method to measure farm energy efficiency. This method is based on the Data Envelopment Analysis (DEA) approach in a cost framework introduced by Farrell (1957) and developed by Färe et al. (1985). We decompose the energy efficiency measurement into two components, namely technical and allocative efficiencies. Here, input prices are replaced by their energy content. The energy efficiency model is used to explore the optimal input-mix that produces the current outputs at minimum energy-consumption. We show that this decomposition can help policy makers considerably to design accurate energy policies. The presence of uncertainty on data, and more particularly on energy content of inputs, leads us to recommend exploiting the methodologies proposed for calculating the bounds of efficiency measurement in order to produce more robust results. We expect to alert policy-makers in the fact that efficiency is not a fixed value and should be considered with caution. A 2007 database of French farms specialized in crops is used for empirical illustration.