Heterogeneity, transient and persistent technical efficiency of Polish crop farms

Spanish Journal of Agricultural Research

Andrzej Pisulewski¹ 

[1] Cracow University of Economics, Dept. of Econometrics and Operational Research, ul. Rakowicka 27, 31-510 Kraków

关键词: panel data;    stochastic frontier analysis;    random effects;   

DOI  :  10.5424/sjar/2019171-13926

学科分类：农业科学（综合）

来源: I N I A

【 摘 要 】

Accounting for heterogeneity in the measurement of farm efficiency is crucial to avoid biases related to climate and soil quality diversity in a given area. Therefore, this paper investigates the level of technical efficiency (TE) of Polish crop farms based on several stochastic frontier panel data models with different approaches to the measurement of unobserved heterogeneity, short- and long- run inefficiency. In our study, we show that ignoring farm heterogeneity can lead to underestimation of the level of TE in conventional stochastic frontier panel data models. Moreover, we have found empirically that not accounting for heterogeneity in the Generalized True Random Effects model may lead to incorrect estimates of persistent TE. The obtained results for Polish crop farms indicate that the level of transient TE (0.81) is lower than the level of persistent TE (0.88). This result suggests that Polish farms may have, for example, problems with adopting new technologies and poor managerial skills.

【 授权许可】

Free