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Self-Dual Stochastic Production Frontiers and Decomposition of Output Growth: The Case of Olive Growing Farms in Greece

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  • Giannis Karagiannis
  • Vangelis Tzouvelekas

    (Department of Economics, University of Crete, Greece)

Abstract

This paper provides a decomposition of output growth among olive-growing farms in Greece during the period 1987–1993 by integrating Bauer's (1990) and Bravo-Ureta and Rieger's (1991) approaches. The proposed methodology is based on the use of self-dual production frontier functions. Output growth is attributed to the size effect, technical change, changes in technical and input allocative inefficiency, and the scale effect. Empirical results indicate that the scale and the input allocative inefficiency effects, which were not taken into account in previous studies on output growth decomposition analysis, have caused a 7.3% slowdown and a 11.0% increase in output growth, respectively. Technical change was found to be the main source of TFP growth while both technical and input allocative inefficiency decreased over time. Still though, a 56.5% of output growth is attributed to input growth.
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Suggested Citation

  • Giannis Karagiannis & Vangelis Tzouvelekas, 1999. "Self-Dual Stochastic Production Frontiers and Decomposition of Output Growth: The Case of Olive Growing Farms in Greece," Working Papers 9913, University of Crete, Department of Economics.
    • Handle: RePEc:crt:wpaper:9913
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    Cited by:

    1. Lambarraa, Fatima & Serra, Teresa & Gil Roig, Jose Maria, 2006. "Technical efficiency analysis and decomposition of productivity growth of Spanish olive farms," 98th Seminar, June 29-July 2, 2006, Chania, Crete, Greece 10071, European Association of Agricultural Economists.
    2. Dhehibi, Boubaker & Lachaal, Lassaad & Karray, B. & Chebil, Ali, 2006. "Decomposition of output growth in the Tunisian olive-growing sector: A frontier production function approach," 98th Seminar, June 29-July 2, 2006, Chania, Crete, Greece 10037, European Association of Agricultural Economists.
    3. Giannis Karagiannis & Peter Midmore & Vangelis Tzouvelekas, 2002. "Parametric Decomposition of Output Growth," Working Papers 0204, University of Crete, Department of Economics.
    4. Boris Bravo-Ureta & Daniel Solís & Víctor Moreira López & José Maripani & Abdourahmane Thiam & Teodoro Rivas, 2007. "Technical efficiency in farming: a meta-regression analysis," Journal of Productivity Analysis, Springer, vol. 27(1), pages 57-72, February.
    5. Ilemobayo, Olufunke Olufunmilayo & Rahji, Mohammed Abdul Yekeen & Oluwafemi, Zacchaeus Olaniyi & Johnson, Sina Basil, 2024. "A Time Series Analysis of Output-Oriented Production Efficiency in Nigeria Agriculture," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 12(01), January.
    6. Giannis Karagiannis, 2005. "Explaining output growth with a heteroscedastic non-neutral production frontier: the case of sheep farms in Greece," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 32(1), pages 51-74, March.
    7. Ilemobayo, Olufunke Olufunmilayo & Rahji, Mohammed Abdul Yekeen & Oluwafemi, Zacchaeus Olaniyi & Johnson, Sina Basil, 2024. "A Time Series Analysis of Output-Oriented Production Efficiency in Nigeria Agriculture," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 12(1), January.
    8. Dhehibi, Boubaker & Elloumi, Mohamed, 2009. "Stochastic Production Frontiers and Decomposition of Output Growth: The case of citrus-growing farms in Tunisia," 2009 Conference, August 16-22, 2009, Beijing, China 49953, International Association of Agricultural Economists.

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    More about this item

    Keywords

    TFP decomposition; self-dual functional forms; olive-oil; Greece;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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