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Matching Efficiency Results of Organic Farms

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  • Kantelhardt, Jochen
  • Kirchweger, Stefan

Abstract

Organic farms work under very heterogeneous natural-site and socio-economic conditions. This heterogeneity is of clear relevance for economic efficiency and for the decision of farms to convert to organic farming. In order to produce proper results efficiency analysis must consider such heterogeneity and self-selection aspects. This applies in particular to data envelopment analysis, since this technique does not calculate error terms, but include heterogeneity into efficiency results. One way to control for such effects is matching. Matching is based on the assumption that under a given vector of observable variables, the outcome of one individual is independent of the adoption of a specific treatment. In our paper we present how to implement matching into efficiency analysis of organic farms. We give a brief overview on literature applying this technique and we discuss which insights the application of matching might contribute to the current discussion on organic farming.

Suggested Citation

  • Kantelhardt, Jochen & Kirchweger, Stefan, 2015. "Matching Efficiency Results of Organic Farms," 2015 Conference, August 9-14, 2015, Milan, Italy 212024, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae15:212024
    DOI: 10.22004/ag.econ.212024
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    References listed on IDEAS

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    1. Michael Lechner, 2002. "Some practical issues in the evaluation of heterogeneous labour market programmes by matching methods," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 165(1), pages 59-82, February.
    2. Michael Lechner, 2002. "Program Heterogeneity And Propensity Score Matching: An Application To The Evaluation Of Active Labor Market Policies," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 205-220, May.
    3. A. Smith, Jeffrey & E. Todd, Petra, 2005. "Does matching overcome LaLonde's critique of nonexperimental estimators?," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 305-353.
    4. Sauer, J. & Walsh, J. & Zilberman, D., 2014. "Agri-Environmental Policy Effects at Producer Level – Identification and Measurement," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 49, March.
    5. Breustedt, Gunnar & Latacz-Lohmann, Uwe & Tiedemann, Torben, 2011. "Organic or conventional? Optimal dairy farming technology under the EU milk quota system and organic subsidies," Food Policy, Elsevier, vol. 36(2), pages 223-229, April.
    6. Sipilainen, Timo & Oude Lansink, Alfons G.J.M., 2005. "Learning in Organic Farming - An Application on Finnish Dairy Farms," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24493, European Association of Agricultural Economists.
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    10. Carlos D. Mayen & Joseph V. Balagtas & Corinne E. Alexander, 2010. "Technology Adoption and Technical Efficiency: Organic and Conventional Dairy Farms in the United States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(1), pages 181-195.
    11. Dyson, R. G. & Allen, R. & Camanho, A. S. & Podinovski, V. V. & Sarrico, C. S. & Shale, E. A., 2001. "Pitfalls and protocols in DEA," European Journal of Operational Research, Elsevier, vol. 132(2), pages 245-259, July.
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    Keywords

    Farm Management; Livestock Production/Industries;

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