Heterogeneity, transient and persistent technical efficiency of Polish crop farms

Pisulewski, Andrzej; Marzec, Jerzy

doi:10.5424/sjar/2019171-13926

Cited by 9 publications

(15 citation statements)

References 47 publications

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“…Different paths can be followed to eliminate this waste of resources and promote the sustainability of the dairy processing industry. According to Pisulewski and Marzec [35], management should focus on changes in the organization of the production process and managerial competency. According to Dimara et al [15], policy makers should provide access to biotech innovations and food supply networks.…”

Section: Resultsmentioning

confidence: 99%

“…Transient technical inefficiency arises as a result of non-systematic managerial failures that can be resolved in the short term. According to Pisulewski and Marzec [35] as well as Njuki and Bravo-Ureta [36], the transient part of inefficiency relates to shocks associated with new production technologies and human capital. Kumbhakar and Lien [37] add that transient technical efficiency can represent the managerial ability to learn by doing.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

“…In this study, we assume that the transformation process can be well approximated by the IDF in a translog functional form. This second-order local approximation of any twicedifferentiable function satisfies Diewert's minimum flexibility requirement for flexible form [35]. The translog input distance function for output (y), J-inputs (x), and time (t) is defined as…”

Section: Input Distance Functionmentioning

confidence: 99%

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Technical Efficiency in the European Dairy Industry: Can We Observe Systematic Failures in the Efficiency of Input Use?

Čechura

Kroupová

2021

Sustainability

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The paper provides findings on the technical efficiency of the European dairy processing industry, which is one of the most important subsectors of the food processing industry in the European Union (EU). The ability to efficiently use inputs in the production of outputs is a prerequisite for the sustainability and competitiveness of the agri-food sector as well as for food security. Thus, the aim of this paper is to provide a robust estimate of technical efficiency by employing new advances in productivity and efficiency analysis, and to investigate the efficiency of input use in 10 selected European countries. The analysis is based on two-stage stochastic frontier modelling incorporating country-specific input distance function (IDF) estimates and a meta-frontier input distance function estimate, both in specification of the four-component model, which currently represents the most advanced approach to technical efficiency analysis. To provide a robust estimate of these models, the paper employs methods that control for the potential endogeneity of netputs in the multi-step estimation procedure. The results, based on the Amadeus dataset, reveal that companies manufacturing dairy products greatly exploited their production possibilities in 2006–2018. The dairy processing industry in the analysed countries cannot generally be characterized by a considerable waste of resources. The potential cost reduction is estimated at 4–8%, evaluated on the country samples mean. The overall technical inefficiency (OTE) is mainly a result of short-term shocks and unsystematic failures. However, the meta-frontier estimates also reveal a certain degree of systematic failure, e.g., permanent managerial failures and structural problems in European dairy processing industry.

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Section: Resultsmentioning

confidence: 99%

Section: Theoretical Backgroundmentioning

confidence: 99%

Section: Input Distance Functionmentioning

confidence: 99%

See 1 more Smart Citation

Technical Efficiency in the European Dairy Industry: Can We Observe Systematic Failures in the Efficiency of Input Use?

Čechura

Kroupová

2021

Sustainability

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“…of Q, K and M, price indexes provided by the Central Statistical Office of Poland are used as deflators. The exact definitions of these quantities, as well as information about the deflators, were presented by Marzec and Pisulewski (2017), Pisulewski and Marzec (2019). Table 1 summarises the descriptive statistics for the variables used in the main study.…”

Section: Data On Polish Crop Farmsmentioning

confidence: 99%

“…The arithmetic mean area of land per farm is 43 ha. Crop farms in European countries are generally larger (Pisulewski and Marzec 2019).…”

Section: Data On Polish Crop Farmsmentioning

confidence: 99%

Measurement of technical efficiency in the case of heterogeneity of technologies used between firms - Based on evidence from Polish crop farms

Marzec¹,

Pisulewski²

2021

AGR ECON-CZECH

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In the present study, we have investigated several competing stochastic frontier models which differ in terms of the form of the production function (Cobb-Douglas or translog), inefficiency distribution (half-normal or exponential distribution) and type of prior distribution for the parameters (hierarchical or non-hierarchical from the Bayesian point of view). This last distinction corresponds to a difference between random coefficients and fixed coefficients models. Consequently, this study aims to examine to what extent inferences about estimates of farms' efficiency depend on the above assumptions. Moreover, the study intends to investigate how far the production function's characteristics are affected by the choice of the type of prior distribution for the parameters. First of all, it was found that the form of the production function does not impact the efficiency scores. Secondly, we found that measures of technical efficiency are sensitive to distributional assumptions about the inefficiency term. Finally, we have revealed that estimates of technical efficiency are reasonably robust to the prior information about the parameters of crop farms' production technology. There is also a resemblance in the elasticity of output with respect to inputs between the models considered in this paper. Additionally, the measurement of returns to scale is not sensitive to model specification.

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The Impact of Subsidies on Persistent and Transient Technical Inefficiency: Evidence from Polish Dairy Farms

Pisulewski

Marzec²

2022

J. Agric. Appl. Econ.

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We investigate the impact of five types of subsidies granted under the European Union Common Agricultural Policy on the persistent and transient inefficiency of Polish dairy farms. Our research shows that coupled and environmental subsidies reduce transient technical inefficiency, while the opposite is true for Less Favoured Areas (LFA) and other rural subsidies. Simultaneously, environmental, LFA, and other rural subsidies increase persistent technical inefficiency. These results imply that the impact of each type of subsidy on technical efficiency can be different and that the effect of the particular type of subsidy can vary between transient and persistent technical inefficiency.

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Heterogeneity, transient and persistent technical efficiency of Polish crop farms

Cited by 9 publications

References 47 publications

Technical Efficiency in the European Dairy Industry: Can We Observe Systematic Failures in the Efficiency of Input Use?

Technical Efficiency in the European Dairy Industry: Can We Observe Systematic Failures in the Efficiency of Input Use?

Measurement of technical efficiency in the case of heterogeneity of technologies used between firms - Based on evidence from Polish crop farms

The Impact of Subsidies on Persistent and Transient Technical Inefficiency: Evidence from Polish Dairy Farms

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