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Using Cross-Section Data to Adjust Technical Efficiency Indexes Estimated With Panel Data

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  • Antonio M. Álvarez
  • Eduardo González

Abstract

This article proposes a procedure to incorporate cross-sectional information in the estimation of technical efficiency indexes obtained from panel data. A conventional index of technical efficiency is estimated in a first stage using panel data on inputs and outputs. The individual effects from the first stage are then adjusted using cross-sectional information, obtaining a corrected technical efficiency index. The model is applied to a panel of eighty-two Spanish dairy farms, where only cross-sectional information about input quality is available. An analysis of variance is performed between some variables and both the corrected and the uncorrected indexes, finding that the conclusions derived from the two analyses are different. Copyright 1999, Oxford University Press.

Suggested Citation

  • Antonio M. Álvarez & Eduardo González, 1999. "Using Cross-Section Data to Adjust Technical Efficiency Indexes Estimated With Panel Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(4), pages 894-901.
    • Handle: RePEc:oup:ajagec:v:81:y:1999:i:4:p:894-901
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    File URL: http://hdl.handle.net/10.2307/1244332
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    Cited by:

    1. Boris Bravo-Ureta & Daniel Solís & Víctor Moreira López & José Maripani & Abdourahmane Thiam & Teodoro Rivas, 2007. "Technical efficiency in farming: a meta-regression analysis," Journal of Productivity Analysis, Springer, vol. 27(1), pages 57-72, February.
    2. Nehring, Richard & Erickson, Kenneth & Michael, Harris & Hallahan, Charlie & Katchova, Ani, 2016. "Heartland, Southern Seaboard, and Prairie Gateway: A Farm-Level Analysis," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235666, Agricultural and Applied Economics Association.
    3. Álvarez, Antonio & Roibás, David, 2006. "An Economic Model to Evaluate the Contribution of Genetics to Milk Production," Efficiency Series Papers 2006/02, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    4. Lusine H. Aramyan & Christien J.M. Ondersteijn & Alfons G.J.M. Oude Lansink & Olaf van Kooten & Jo H.M. Wijnands, 2006. "Analyzing greenhouse firm performance across different marketing channels," Agribusiness, John Wiley & Sons, Ltd., vol. 22(2), pages 267-280.
    5. Morrison Paul, Catherine J. & Nehring, Richard F. & Banker, David E. & Breneman, Vincent E., 2001. "Productivity Growth, Technological Progress, and Technical Efficiency in the Heartland and Southern Cotton States:1996-1999," 2001 Annual meeting, August 5-8, Chicago, IL 20679, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Álvarez, Antonio, 2001. "Some Issues on the Estimation of Technical Efficiency in Fisheries," Efficiency Series Papers 2001/02, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    7. Park, Dooho & Davies, Stephen P. & Seidl, Andrew F., 2001. "A Nationwide, State-Level, Analysis Of Animal Confinement Policy By Selected Species," 2001 Annual Meeting, July 8-11, 2001, Logan, Utah 36160, Western Agricultural Economics Association.
    8. Nadia BELHAJ HASSINE, 2007. "Technical Efficiency In The Mediterranean Countries’ Agricultural Sector," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 25, pages 27-44.
    9. Bremmer, Johan & Oude Lansink, Alfons G.J.M. & Huirne, Ruud B.M., 2008. "The Impact of Innovation, Firm Growth and Perceptions on Technical and Scale Efficiency," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 9(2).
    10. Herrero, Ines, 2005. "Different approaches to efficiency analysis. An application to the Spanish Trawl fleet operating in Moroccan waters," European Journal of Operational Research, Elsevier, vol. 167(1), pages 257-271, November.
    11. Paul, Catherine J. Morrison & Nehring, Richard, 2005. "Product diversification, production systems, and economic performance in U.S. agricultural production," Journal of Econometrics, Elsevier, vol. 126(2), pages 525-548, June.

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