Assessing productivity change with SFA in the sheep sector of Greece

Abstract

The objective of this paper is to measure total factor productivity growth in a panel of sheep farms in Greece and assess the relative contribution of technical change, technical efficiency change and scale efficiency change in observed productivity growth. Such decomposition can be useful in planning well defined policies which can support the sector's sustainable development via the optimization of input/output use. A stochastic frontier production function approach is adopted and maximum likelihood is used to estimate the parameters. The data used for the econometric estimation are obtained from the Greek Farm Accounting Data Network for the period 1997-2002. TFP has been growing in the sector but at a diminishing rate. The major determinant of productivity growth is technical change, which has been shifting the frontier by 2.4% on average during this period, but is counteracted to some extent by technical and scale inefficiency each reducing TFP growth by about 0.3% p.a.

Productivity Growth in German Dairy Farming using a Flexible Modelling Approach

“…, 2002; Karagiannis et al. , 2004; Karagiannis and Sarris, 2005; Karagiannis and Tzouvelekas, 2005; Newman and Matthews, 2007; Melfou et al. , 2009; Alvarez and del Corral, 2010; Zhu and Oude Lansink, 2010).…”

“…As a result of the importance of productivity growth, a large body of literature has developed concerned with measuring and decomposing TFP growth rates in agriculture. Empirical studies range from using country-level data to model the entire agricultural sector (Rayner et al, 1986;Bureau et al, 1995;Fulginiti and Perrin, 1997;Arnade, 1998;Suhariyanto and Thirtle, 2001;Coelli and Rao, 2005;Headey et al, 2010), 2 to examining specific production systems using farm-level data (Bru¨mmer et al, 2002;Karagiannis et al, 2004;Karagiannis and Sarris, 2005;Karagiannis and Tzouvelekas, 2005;Newman and Matthews, 2007;Melfou et al, 2009;Alvarez and del Corral, 2010;Zhu and Oude Lansink, 2010).…”

Analisis Dampak Subsidi Input Terhadap Efisiensi Ekonomi Usaha Budidaya Ikan Kerapu Di Kabupaten Pesawaran, Lampung

“…Dari pendekatan fungsi biaya, efisiensi usaha dapat dilihat dari perubahan pangsa faktor (factor share), dan produktivitas usaha dari pangsa penerimaan (revenue share) dan pangsa modal (fixed quasi input share) (Melfou et al, 2008;Koo et al, 2001;Mamatzakis, 2003).…”

“…Temuan ini relevan hasil penelitian yang dilakukan Melfou (2008) untuk kasus usaha pertanian dimana permintaan tenaga kerja bersifat inelastis terhadap input lainnya dan peningkatan upah tenaga kerja tersebut meningkatkan biaya oportunitas (opportunity cost) dalam kegiatan produksi.…”

Panel Data Estimation Methods on Supply and Demand Elasticities: The Case of Cotton in Greece

“…They have estimated a system of equations using a balanced panel with farm-level data collected in Kansas. As for the unbalanced panel data sets, the most frequently used in agricultural economics in the European Union is the Farm Accountancy Data Network (FADN), which consists of farm-level data collected every year (Bakucs and Fertõ, 2009;Csajbok, Lansink, and Huirne, 2005; Karagiannis and Sarris, 2005;Melfou, Theocharopoulos, and Papanagiotou, 2009;Reidsma et al, 2009;Rezitis, Tsiboukas, and Tsoukalas, 2002). Many studies that evaluate the effects of Common Agricultural Policy estimate a system of equations and make use of the FADN data set.…”