Integrated spatial dependence into Stochastic Frontier Analysis

Francisco Areal, Kelvin Balcombe and Richard Tiffin

Australian Journal of Agricultural and Resource Economics, 2012, vol. 56, issue 4, 21

Abstract: An approach to incorporate spatial dependence into stochastic frontier analysis is developed and applied to a sample of 215 dairy farms in England and Wales. A number of alternative specifications for the spatial weight matrix are used to analyse the effect of these on the estimation of spatial dependence. Estimation is conducted using a Bayesian approach and results indicate that spatial dependence is present when explaining technical inefficiency.

Keywords: Farm Management; Livestock Production/Industries; Production Economics (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (42)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aareaj:229821

DOI: 10.22004/ag.econ.229821

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