No. 106. A TWO-STAGE PRODUCTIVITY ANALYSIS USING BOOTSTRAPPED MALMQUIST INDEX AND QUANTILE REGRESSION

Published in DISCUSSION PAPERS

E.A.  Kaditi, E.I. Nitsi. 2009.

 

This paper examines the effects of farm characteristics and government policies in enhancing productivity growth for a sample of Greek farms, using a two-stage procedure. In the first stage, non-parametric estimates of the Malmquist index and its decompositions are computed, while a bootstrapping procedure is applied to provide statistical precision. In the second stage, productivity growth estimates are regressed on various covariates using a bootstrapped quantile regression approach. The effect that the covariates exert on productivity growth for the average producer is analyzed, as well as the marginal effect of a given covariate for individuals at different points in the conditional productivity distribution. The results indicate that there exists large disparity of the covariates effect on productivity growth at different quantiles. Thus, policy recommendations should take into account the productivity distribution involved, as well as the selected policy objectives.

 

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