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The effect of farm characteristics on the persistence of technical inefficiency: a case study in German dairy farming

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  • Ioannis Skevas
  • Grigorios Emvalomatis
  • Bernhard Brümmer

Abstract

This paper provides a way to include explanatory variables that may impact the persistence of farms’ technical inefficiency by extending the conventional parametric dynamic efficiency model. Estimation of the model is performed using typical Bayesian techniques. The empirical findings reveal a high degree of inefficiency persistence through time, which is increasing in the amount of subsidies received, while older farmers exhibit higher inefficiency persistence, as opposed to younger ones, presumably due to their luck of motivation to adopt state-of-the-art technologies.

Suggested Citation

  • Ioannis Skevas & Grigorios Emvalomatis & Bernhard Brümmer, 2018. "The effect of farm characteristics on the persistence of technical inefficiency: a case study in German dairy farming," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 45(1), pages 3-25.
    • Handle: RePEc:oup:erevae:v:45:y:2018:i:1:p:3-25.
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    File URL: http://hdl.handle.net/10.1093/erae/jbx019
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    Cited by:

    1. Skevas, Ioannis, 2020. "Inference in the spatial autoregressive efficiency model with an application to Dutch dairy farms," European Journal of Operational Research, Elsevier, vol. 283(1), pages 356-364.
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    3. Ioannis Skevas & Alfons Oude Lansink, 2020. "Dynamic Inefficiency and Spatial Spillovers in Dutch Dairy Farming," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(3), pages 742-759, September.
    4. Skevas, Ioannis & Skevas, Theodoros, 2021. "A generalized true random-effects model with spatially autocorrelated persistent and transient inefficiency," European Journal of Operational Research, Elsevier, vol. 293(3), pages 1131-1142.
    5. Jing Liu & Shichun Du & Zetian Fu, 2021. "The Impact of Rural Population Aging on Farmers’ Cleaner Production Behavior: Evidence from Five Provinces of the North China Plain," Sustainability, MDPI, vol. 13(21), pages 1-16, November.
    6. Maximilian Koppenberg, 2023. "Markups, organic agriculture and downstream concentration at the example of European dairy farmers," Agricultural Economics, International Association of Agricultural Economists, vol. 54(2), pages 161-178, March.
    7. Kevin Schneider & Ioannis Skevas & Alfons Oude Lansink, 2021. "Spatial Spillovers on Input‐specific Inefficiency of Dutch Arable Farms," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(1), pages 224-243, February.
    8. Ioannis Skevas, 2023. "A novel modeling framework for quantifying spatial spillovers on total factor productivity growth and its components," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(4), pages 1221-1247, August.

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