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Explaining differences in farms efficiencies in Polish agriculture

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  • Hockmann, Heinrich
  • Pieniadz, Agata

Abstract

This paper deals with the estimation of a random coefficient model. The virtue of this approach is that it considers firm heterogeneity, which conventional SFA models do not. When the model is applied to Polish farms, the results indicate that the conventional random and fixed effect models overestimate the potential production increases due to the reduction of inefficiency. Additionally, our findings provide evidence of the importance of input quality for efficiency analysis. Moreover, the results indicate that farm heterogeneity is a significant determinant of agricultural production. We found that differences in productivity between the farms can partly be attributed to farm size, degree of integration in the product markets and incurred transaction costs.

Suggested Citation

  • Hockmann, Heinrich & Pieniadz, Agata, 2009. "Explaining differences in farms efficiencies in Polish agriculture," 2009 Conference, August 16-22, 2009, Beijing, China 51051, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae09:51051
    DOI: 10.22004/ag.econ.51051
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    References listed on IDEAS

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    Cited by:

    1. Supawat Rungsuriyawiboon & Heinrich Hockmann, 2015. "Adjustment costs and efficiency in Polish agriculture: a dynamic efficiency approach," Journal of Productivity Analysis, Springer, vol. 44(1), pages 51-68, August.

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