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An Analysis of the Impacts of Weather on Technical Efficiency in Czech Agriculture

Author

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  • Barbora Hřebíková

    (Department of Economics, Faculty of Economics and Management, Czech University of Life Sciences Prague, Kamýcká 129, 165 21 Praha 6-Suchdol, Czech Republic)

  • Lukáš Čechura

    (Department of Economics, Faculty of Economics and Management, Czech University of Life Sciences Prague, Kamýcká 129, 165 21 Praha 6-Suchdol, Czech Republic)

Abstract

Although weather is a significant determinant of agricultural production, it is not a common practice when analysing production to control for its impact. The problem is methodological, since it is difficult to find a proper proxy variable for weather in these models. The aim of this study is to investigate these issues. First, several possibilities for describing weather and its inclusion into stochastic frontier models are defined and discussed. Then, the explicit impact of weather on the technical efficiency of Czech farmers in different regions of the Czech Republic for the period 2004-2009 is analyzed and discussed. We use a proxy variable in the form of Iowa indices in the production analysis, in order to capture the impact of weather on technical efficiency. A stochastic frontier production function model in the form of the BC Model is defined, and weather enters the model as a variable explaining technical inefficiency. The paper arose within the framework of solution of the 7th FP EU project COMPETE no 312029.

Suggested Citation

  • Barbora Hřebíková & Lukáš Čechura, 2015. "An Analysis of the Impacts of Weather on Technical Efficiency in Czech Agriculture," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 63(5), pages 1645-1652.
    • Handle: RePEc:mup:actaun:actaun_2015063051645
    DOI: 10.11118/actaun201563051645
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    References listed on IDEAS

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    1. Efthymios G. Tsionas, 2002. "Stochastic frontier models with random coefficients," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 17(2), pages 127-147.
    2. Cechura, L. & Hockmann, H. & Malý, M. & Žáková Kroupová, Z., 2015. "Comparison of Technology and Technical Efficiency in Cereal Production among EU Countries," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 7(2), pages 1-11, June.
    3. Subal C. Kumbhakar & Raushan Bokusheva, 2009. "Modelling farm production decisions under an expenditure constraint," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 36(3), pages 343-367, September.
    4. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-332.
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    Cited by:

    1. 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.

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