Profit efficiency and its determinants in the agricultural sector: A Bayesian approach
Marta Arbelo-Pérez,
Pilar Pérez-Gómez,
Antonio Arbelo
Abstract:Most empirical studies evaluating efficiency in the agricultural sector estimate cost efficiency, assuming homogeneity across firms. However, achieving the goal of profit maximisation requires both minimising costs and maximising revenue. Unlike cost efficiency, the concept of profit efficiency considers the errors on both the input side and the output side, and thus, it is more appropriate for evaluating the overall performance of firms. This paper estimates profit efficiency and its determinants in the agric… Show more
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