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Subsidies, Endogenous Technical Efficiency and the Measurement of Productivity Growth

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  • Lachaal, Lassaad

Abstract

The impacts of program subsidy on productivity growth is investigated in this study. Mundlak's concept of endogeneity is applied to technical efficiency and generalized within a dual framework. Technology is described by an aggregate cost function while technical efficiency is conditional on a vector of state variables. Empirical evidence from the U.S. dairy sector supports the hypothesis that protectionism, in the form of program subsidy, is the source of considerable technical inefficiencies.

Suggested Citation

  • Lachaal, Lassaad, 1994. "Subsidies, Endogenous Technical Efficiency and the Measurement of Productivity Growth," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 26(1), pages 299-310, July.
    • Handle: RePEc:cup:jagaec:v:26:y:1994:i:01:p:299-310_01
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    Cited by:

    1. Narangerel Ganbold & Shah Fahad & Hua Li & Tumendemberel Gungaa, 2022. "An evaluation of subsidy policy impacts, transient and persistent technical efficiency: A case of Mongolia," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(7), pages 9223-9242, July.
    2. Artiom Volkov & Mangirdas Morkunas & Tomas Balezentis & Vaida Šapolaitė, 2020. "Economic and Environmental Performance of the Agricultural Sectors of the Selected EU Countries," Sustainability, MDPI, vol. 12(3), pages 1-17, February.
    3. Morrison Paul, Catherine J., 2000. "Productivity And Efficiency In The U.S. Food System, Or, Might Cost Factors Support Increasing Mergers And Concentration?," Working Papers 11983, University of California, Davis, Department of Agricultural and Resource Economics.
    4. Laure Latruffe & Boris E. Bravo-Ureta & Alain Carpentier & Yann Desjeux & Víctor H. Moreira, 2017. "Subsidies and Technical Efficiency in Agriculture: Evidence from European Dairy Farms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 99(3), pages 783-799.
    5. Mitchell, Matt & Farren, Michael & Gonzalez, Olivia & Horpedahl, Jeremy, 2019. "The Economics of a Targeted Economic Development Subsidy," Annals of Computational Economics, George Mason University, Mercatus Center, November.
    6. Lachaal, Lassaad & Chebil, Ali & Dhehibi, Boubaker, 2005. "Measuring factor substitution and technological change in the Tunisian agricultural sector, 1971 - 2000," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 6(2), pages 1-11.
    7. Ali Chebil & Aymen Frija & Rached Alyani, 2015. "Measurement of Total Factor Productivity and its Determinants: Case of Wheat Sector in Tunisia," Working Papers 943, Economic Research Forum, revised Sep 2015.
    8. Laure Latruffe & Yann Desjeux, 2016. "Common Agricultural Policy support, technical efficiency and productivity change in French agriculture," Review of Agricultural, Food and Environmental Studies, Springer, vol. 97(1), pages 15-28, June.
    9. Udoh, Edet Joshua & Akpan, Sunday Brownson, 2019. "Macroeconomic Variables Affecting Fish Production in Nigeria," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society (AESS), vol. 9(02), January.
    10. Minviel, Jean Joseph & Latruffe, Laure, 2014. "Meta-regression analysis of the impact of agricultural subsidies on farm technical efficiency," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182767, European Association of Agricultural Economists.
    11. Lassaad Lachaal, 1998. "Production Structure Characteristics and Adaptations of Productivity Growth Measures : A Survey," Post-Print hal-01200909, HAL.
    12. Dhehibi, Boubaker & Elloumi, Mohamed, 2009. "Stochastic Production Frontiers and Decomposition of Output Growth: The case of citrus-growing farms in Tunisia," 2009 Conference, August 16-22, 2009, Beijing, China 49953, International Association of Agricultural Economists.
    13. Latruffe, Laure & Bravo-Ureta, Boris E. & Moreira, Victor H. & Desjeux, Yann & Dupraz, Pierre, 2011. "Productivity and Subsidies in European Union Countries: An Analysis for Dairy Farms Using Input Distance Frontiers," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114396, European Association of Agricultural Economists.
    14. Lien, Gudbrand D. & Kumbhakar, Subal C. & Hardaker, J. Brian, 2008. "Determinants Of Part-Time Farming And Its Effect On Farm Productivity And Efficiency," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6701, European Association of Agricultural Economists.
    15. Lachaal, Lassaad & Chebil, Ali & Dhehibi, Boubaker, 2004. "A Panel Data Approach to the Measurement of Technical Efficiency and its Determinants: Some Evidence from the Tunisian Agro-Food Industry," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 5(1), pages 1-9, January.
    16. Mozumdar, Lavlu, 2012. "Agricultural productivity and food security in the developing world," Bangladesh Journal of Agricultural Economics, Bangladesh Agricultural University, vol. 35(1-2).
    17. Edet Joshua Udoh & Sunday Brownson Akpan, 2019. "Macroeconomic variables affecting fish production in Nigeria," Asian Journal of Agriculture and rural Development, Asian Economic and Social Society, vol. 9(2), pages 216-230, December.
    18. Hassan, Samir Ul & Khanday, Shafi Ahmad & Ahmad, Masroor & Mishra, Biswambhara & Rymbai, Motika Sinha, 2022. "A Historical Cum Empirical Overview of Agriculture Spending and Output Nexus in India," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 14(3), September.
    19. Dhehibi, Boubaker & Lachaal, Lassaad & Karray, B. & Chebil, Ali, 2006. "Decomposition of output growth in the Tunisian olive-growing sector: A frontier production function approach," 98th Seminar, June 29-July 2, 2006, Chania, Crete, Greece 10037, European Association of Agricultural Economists.
    20. Lassaad Lachaal, 1998. "Production Structure Characteristics and Adaptations of Productivity Growth Measures : A Survey," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 48, pages 61-78.
    21. Lachaal, Lassaad, 1998. "Production Structure Characteristics and Adaptations of Productivity Growth Measures : A Survey," Cahiers d'Economie et de Sociologie Rurales (CESR), Institut National de la Recherche Agronomique (INRA), vol. 48.
    22. Moreira, Victor H. & Bravo-Ureta, Boris E. & Dunner, Roberto & Vidal, Ricardo, 2012. "Total Factor Productivity Change in Dairy Production in Southern Chile: Is Farm Size Significant?," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126895, International Association of Agricultural Economists.
    23. Latruffe, Laure & Bravo-Ureta, Boris E. & Moreira, Victor H. & Desjeux, Yann & Dupraz, Pierre, 2012. "Productivity and Subsidies in the European Union: An Analysis for Dairy Farms Using Input Distance Frontiers," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126846, International Association of Agricultural Economists.

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