No. 112. APPLYING REGRESSION QUANTILES TO FARM EFFICIENCY ESTIMATION

Published in DISCUSSION PAPERS

E.A.  Kaditi, E.I. Nitsi. 2010.

 

This article is concerned with the frontier production function estimation for agriculture and the use of regression quantiles as an alternative approach. Better insights are reached using the proposed methodology that provides robust farm efficiency estimates. Using the 2007 Farm Accountancy Data Network data for Greece, analysis shows that the distribution of efficiency scores is closer to normality when employing regression quantiles. An additional advantage arises from the examination of the impact that a set of covariates might have at different efficiency levels, providing valuable information to policy makers, which could not be retrieved from a Stochastic Frontier Analysis. In the application used, it becomes apparent that various policy instruments affect differently farms that use inputs relatively efficient compared to those that are relatively inefficient. 

 

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