IDEAS home Printed from https://ideas.repec.org/p/ags/umcicp/6683.html
   My bibliography  Save this paper

Technical Efficiency of Italian Beef Cattle Production Under a Heteroscedastic Non-Neutral Production Frontier Approach

Author

Listed:
  • Trestini, Samuele

Abstract

A stochastic production frontier has been estimated to measure the technical efficiency of an unbalanced panel of beef cattle farms extracted from the Farm Accountancy Data Network (FADN) databank of Veneto region in Italy. The technical efficiency is measured based on the estimation of a non-neutral and heteroscedastic production frontier. The model explains the average value of technical inefficiency as a linear function of the farm-specific variables (Battese and Coelli, 1995) and the input interaction variables (Huang and Liu, 1994). The inefficiency term is assumed to be distributed as a truncated normal with a heteroscedastic variance explained as a function of the farm-specific variables (Reifschneider and Stevenson, 1991). The average value of the farm technical efficiency is 78.6% ranging from a minimum of 30.6% to a maximum of 97.6%. The technical efficiency is positively related with the herd extension expressed as number of LSU (Livestock Unit), the value of beef production per LSU, the rate of purchased concentrated feed, and the percentage of concentrated feed used over the overall feed expenditure. Conversely the technical efficiency is negatively correlated with the intensification of the use of buildings investment and labour per LSU.

Suggested Citation

  • Trestini, Samuele, 2006. "Technical Efficiency of Italian Beef Cattle Production Under a Heteroscedastic Non-Neutral Production Frontier Approach," Conference Papers 6683, University of Minnesota, Center for International Food and Agricultural Policy.
    • Handle: RePEc:ags:umcicp:6683
    DOI: 10.22004/ag.econ.6683
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/6683/files/cp06tr01.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.6683?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 233-238, August.
    2. Boris E. Bravo-Ureta & Laszlo Rieger, 1991. "Dairy Farm Efficiency Measurement Using Stochastic Frontiers and Neoclassical Duality," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(2), pages 421-428.
    3. Luis R. Murillo‐Zamorano, 2004. "Economic Efficiency and Frontier Techniques," Journal of Economic Surveys, Wiley Blackwell, vol. 18(1), pages 33-77, February.
    4. Suzanne O’Neill & Alan Matthews, 2001. "Technical Change and Efficiency in Irish Agriculture," The Economic and Social Review, Economic and Social Studies, vol. 32(3), pages 263-284.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. S. Samarajeewa & G. Hailu & S. R. Jeffrey & M. Bredahl, 2012. "Analysis of production efficiency of beef cow/calf farms in Alberta," Applied Economics, Taylor & Francis Journals, vol. 44(3), pages 313-322, January.
    2. García-Suárez, Federico & Pérez-Quesada, Gabriela & Molina, Carlos, 2022. "Rangeland cattle production in Uruguay: Single-output versus multi-output efficiency measures," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 22(01), June.
    3. Markus Lampe & Paul Sharp, 2015. "Just add milk: a productivity analysis of the revolutionary changes in nineteenth-century Danish dairying," Economic History Review, Economic History Society, vol. 68(4), pages 1132-1153, November.
    4. Qushim, Berdikul & Gillespie, Jeffrey M. & Nehring, Richard F., 2013. "Scale Economies And Economic Performance In Southeastern U.S. Cow-Calf Production," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 143009, Southern Agricultural Economics Association.
    5. Emilio Aguirre & Federico García-Suárez & Gabriela Sicilia, 2021. "Eficiencia técnica en la ganadería de carne bovina pastoril. Medición y exploración de sus determinantes en Uruguay," Documentos de Trabajo (working papers) 1321, Department of Economics - dECON.
    6. Wang, Tong & Park, Seong C. & Bevers, Stan & Teague, Richard & Cho, Jaesung, 2013. "Factors Affecting Cow-Calf Herd Performance and Greenhouse Gas Emissions," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(3), pages 1-22.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Saldias, Rodrigo & von Cramon-Taubadel, Stephan, 2012. "Access to credit and the determinants of technical inefficiency among specialized small farmers in Chile," DARE Discussion Papers 1211, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    2. Coelli, Tim J., 1995. "Recent Developments In Frontier Modelling And Efficiency Measurement," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 39(3), pages 1-27, December.
    3. Subal C. Kumbhakar & Christopher F. Parmeter & Valentin Zelenyuk, 2022. "Stochastic Frontier Analysis: Foundations and Advances I," Springer Books, in: Subhash C. Ray & Robert G. Chambers & Subal C. Kumbhakar (ed.), Handbook of Production Economics, chapter 8, pages 331-370, Springer.
    4. Puig-Junoy, Jaume & Argiles, Josep M., 2004. "The influence of management accounting use on farm inefficiency," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 5(2), pages 1-20, August.
    5. Bravo-Ureta, Boris E. & Pinheiro, Antonio E., 1993. "Efficiency Analysis Of Developing Country Agriculture: A Review Of The Frontier Function Literature," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 22(1), pages 1-14, April.
    6. Yu, Chenyang & Tan, Yuanfang & Zhou, Yu & Zang, Chuanxiang & Tu, Chenglin, 2022. "Can functional urban specialization improve industrial energy efficiency? Empirical evidence from China," Energy, Elsevier, vol. 261(PA).
    7. Per J. Agrell & Mehdi Farsi & Massimo Filippini & Martin Koller, 2013. "Unobserved heterogeneous effects in the cost efficiency analysis of electricity distribution systems," Working Papers 0038, Swiss Economics.
    8. José Luis Gallizo & Jordi Moreno & Manuel Salvador, 2015. "European banking integration: is foreign ownership affecting banking efficiency?," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 16(2), pages 340-368, April.
    9. Eric Fosu Oteng-Abayie, 2017. "Technical efficiency and total factor productivity of rural banks in Ghana," Cogent Economics & Finance, Taylor & Francis Journals, vol. 5(1), pages 1366088-136, January.
    10. Tzouvelekas, Vangelis & Pantzios, Christos J. & Fotopoulos, Christos, 2001. "Economic Efficiency in Organic Farming: Evidence from Cotton Farms in Viotia, Greece," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 33(1), pages 35-48, April.
    11. Ali D. Cagdas & Scott R. Jeffrey & Elwin G. Smith & Peter C. Boxall, 2016. "Environmental Stewardship and Technical Efficiency in Canadian Prairie Canola Production," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 64(3), pages 455-477, September.
    12. Farsi, Mehdi & Filippini, Massimo, 2009. "An analysis of cost efficiency in Swiss multi-utilities," Energy Economics, Elsevier, vol. 31(2), pages 306-315, March.
    13. Phu Nguyen-Van & Nguyen To-The, 2016. "Technical efficiency and agricultural policy: evidence from the tea production in Vietnam," Review of Agricultural, Food and Environmental Studies, Springer, vol. 97(3), pages 173-184, November.
    14. Lota D. Tamini & Bruno Larue & Gale West, 2012. "Technical and environmental efficiencies and best management practices in agriculture," Applied Economics, Taylor & Francis Journals, vol. 44(13), pages 1659-1672, May.
    15. Subal Kumbhakar & Efthymios Tsionas & Timo Sipiläinen, 2009. "Joint estimation of technology choice and technical efficiency: an application to organic and conventional dairy farming," Journal of Productivity Analysis, Springer, vol. 31(3), pages 151-161, June.
    16. Akihiro Otsuka, 2020. "How do population agglomeration and interregional networks improve energy efficiency?," Asia-Pacific Journal of Regional Science, Springer, vol. 4(1), pages 1-25, February.
    17. Akihiro Otsuka, 2018. "Regional Determinants of Energy Efficiency: Residential Energy Demand in Japan," Energies, MDPI, vol. 11(6), pages 1-14, June.
    18. Cagdas, Ali D. & Jeffrey, Scott R. & Smith, Elwin G. & Boxall, Peter C., 2013. "Adoption of BMPs and technical inefficiency in Canadian canola production," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150200, Agricultural and Applied Economics Association.
    19. Gabriela Pérez Quesada, 2017. "Technical efficiency of dairy farms in Uruguay: a stochastic production frontier analysis," Documentos de Trabajo (working papers) 0517, Department of Economics - dECON.
    20. Gauri Khanna, 2006. "Technical Efficiency in Production and Resource Use in Sugar Cane: A Stochastic Frontier Production Function Analysis," IHEID Working Papers 15-2006, Economics Section, The Graduate Institute of International Studies.

    More about this item

    Keywords

    Livestock Production/Industries;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:umcicp:6683. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/ciumnus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.