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Dynamic versus Static Inefficiency Assessment of the Polish Meat-Processing Industry in the Aftermath of the European Union Integration and Financial Crisis

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  • Kapelko, Magdalena

Abstract

This paper assesses the dynamic inefficiency of the Polish meat processing industry during the period between 2004 and 2012. This study employs also a comparison of dynamic with static inefficiency measures to address the importance of accounting for adjustment costs when measuring a firm's inefficiency. Dynamic and static cost inefficiencies and their decomposition into technical, allocative, and scale inefficiency are derived using Data Envelopment Analysis. Results showed that firms' low levels of dynmaic cost inefficiency were due to dynamic allocative inefficiency rather than technical and scale inefficiency. The 2008 financial crisis appears to have hampered firms' dynamic technical performance, but has also had a positive influence on the dynamic allocative and scale inefficiencies. WE further show that the average static measures tend to underestimate all inefficiency compenents compared to dynmaic counterparts.

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  • Kapelko, Magdalena, 2015. "Dynamic versus Static Inefficiency Assessment of the Polish Meat-Processing Industry in the Aftermath of the European Union Integration and Financial Crisis," 2015 Conference, August 9-14, 2015, Milan, Italy 211830, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae15:211830
    DOI: 10.22004/ag.econ.211830
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    Cited by:

    1. Aparicio, Juan & Kapelko, Magdalena, 2019. "Accounting for slacks to measure dynamic inefficiency in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 278(2), pages 463-471.
    2. Pierluigi Toma, 2020. "Size and productivity: a conditional approach for Italian pharmaceutical sector," Journal of Productivity Analysis, Springer, vol. 54(1), pages 1-12, August.
    3. Aparicio, Juan & Kapelko, Magdalena & Ortiz, Lidia, 2023. "Enhancing the measurement of firm inefficiency accounting for corporate social responsibility: A dynamic data envelopment analysis fuzzy approach," European Journal of Operational Research, Elsevier, vol. 306(2), pages 986-997.
    4. Magdalena Kapelko & Alfons Oude Lansink, 2018. "Managerial and program inefficiency for European meat manufacturing firms: A dynamic multidirectional inefficiency analysis approach," Journal of Productivity Analysis, Springer, vol. 49(1), pages 25-36, February.
    5. Kapelko, Magdalena & Oude Lansink, Alfons & Zofío, José L., 2022. "Endogenous dynamic inefficiency and optimal resource allocation: An application to the European Dietetic Food Industry," European Journal of Operational Research, Elsevier, vol. 303(3), pages 1444-1457.
    6. Magdalena Kapelko & Alfons Oude Lansink, 2020. "Dynamic Cost Inefficiency of the European Union Meat Processing Firms," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(3), pages 760-777, September.

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    More about this item

    Keywords

    Food Consumption/Nutrition/Food Safety; Production Economics;

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D92 - Microeconomics - - Micro-Based Behavioral Economics - - - Intertemporal Firm Choice, Investment, Capacity, and Financing
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

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