Are Farms in Less Favoured Areas Less Efficient?

Lajos Baráth, Imre Fertő and Štefan Bojnec (stefan.bojnec@fm-kp.si)

No 229061, 2015 Conference, August 9-14, 2015, Milan, Italy from International Association of Agricultural Economists

Abstract: This paper investigates farm technical efficiency (TE), taking into account technological heterogeneity among farms in the case of the Slovenian Farm Accountancy Data Network sample of farms in the 2007-2010 period. A random parameter model is used to analyse inter- and intra-sectoral heterogeneity of farms. The empirical results confirmed that it is important to handle both inter- and intra-sectoral heterogeneity. Additionally the estimations based on propensity score matching (PSM) demonstrated that farms in less favoured areas (LFAs) are slightly technically less efficient than farms in non-LFAs. However, combined PSM and difference in difference estimator cast serious doubts that LFA farms are less efficient in terms of TE. Both groups of farms are able to adopt technologies to natural and other conditions for their operation.

Keywords: Agricultural and Food Policy; Farm Management (search for similar items in EconPapers)
Pages: 19
Date: 2015
New Economics Papers: this item is included in nep-agr, nep-eff and nep-pr~
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Journal Article: Are farms in less favored areas less efficient? (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae15:229061

DOI: 10.22004/ag.econ.229061

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