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Farm Heterogeneity and Efficiency in Polish Agriculture: A Stochastic Frontier Analysis

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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. Applying the model to Polish farms, the results indicate that the conventional random and fixed effect models overestimate the inefficiency score. In addition, the reasons for inefficiency are analysed. It is shown that despite the fragmentation of Polish agriculture, there is no evidence for scale inefficiency. Moreover, inefficiency could partly be attributed to factors, which affect the management input and requirements on farms.

Suggested Citation

  • Hockmann, Heinrich & Pieniadz, Agata, 2007. "Farm Heterogeneity and Efficiency in Polish Agriculture: A Stochastic Frontier Analysis," 104th Seminar, September 5-8, 2007, Budapest, Hungary 7823, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa104:7823
    DOI: 10.22004/ag.econ.7823
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    1. Lajos Zoltan Bakucs & Laure Latruffe & Imre Ferto & Jozsef Fogarasi, 2006. "Technical efficiency of Hungarian farms before and after accession," Post-Print hal-02285626, HAL.
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    6. Bill Greene with Antonio Alvarez (Univ. of Oviedo) & Carlos Arias (Univ. of Leon), 2004. "Accounting For Unobservables In Production Models: Management And Inefficiency," Econometric Society 2004 Australasian Meetings 341, Econometric Society.
    7. Darla Munroe, 2001. "Economic Efficiency in Polish Peasant Farming: An International Perspective," Regional Studies, Taylor & Francis Journals, vol. 35(5), pages 461-471.
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    10. Schmitt, Gunther, 1989. "Farms, Farm Households, and Productivity of Resource Use in Agriculture," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 16(2), pages 257-284.
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    Cited by:

    1. Cechura, Lukas, 2012. "Technological change in the Czech food processing industry: What did we experience in the last decade?," 131st Seminar, September 18-19, 2012, Prague, Czech Republic 135782, European Association of Agricultural Economists.
    2. Qirui Li & T. S. Amjath-Babu & Peter Zander & Zhen Liu & Klaus Müller, 2016. "Sustainability of Smallholder Agriculture in Semi-Arid Areas under Land Set-aside Programs: A Case Study from China’s Loess Plateau," Sustainability, MDPI, vol. 8(4), pages 1-17, April.
    3. Laure Latruffe & Sophia Davidova & Kelvin Balcombe, 2008. "Productivity change in Polish agriculture: an illustration of a bootstrapping procedure applied to Malmquist indices," Post-Communist Economies, Taylor & Francis Journals, vol. 20(4), pages 449-460.
    4. Cechura, Lukas & Hockmann, Heinrich, 2011. "Efficiency and Heterogeneity in Czech Food Processing Industry," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114314, European Association of Agricultural Economists.
    5. Nadia Belhaj Hassine, 2008. "Technology Diffusion, International Spillovers and Human Capital in the Mediterranean Agricultural Sector," Working Papers 405, Economic Research Forum, revised 06 Jan 2008.

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    Keywords

    Farm Management;

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