EconPapers    
Economics at your fingertips  
 

Modeling heterogeneous technologies in the presence of sample selection: The case of dairy farms and the adoption of agri‐environmental schemes in France

K Hervé Dakpo, Laure Latruffe, Yann Desjeux and Philippe Jeanneaux

Agricultural Economics, 2022, vol. 53, issue 3, 422-438

Abstract: In this article, we assess farms’ technical efficiency accounting for their production heterogeneity and correcting for the potential endogeneity associated with the adoption of Common Agricultural Policy (CAP) agri‐environmental schemes (AESs). We estimate a first‐step selection probit model. In a second step we estimate the latent class stochastic frontier model (LCSFM) separately on each of the two sub‐samples, the AESs adopters and the AESs non‐adopters. We also account for heteroscedasticity in the estimation of inefficiency effects in the LCSFM within each sub‐sample. The application is to Farm Accountancy Data Network (FADN) dairy farms in France during 2002–2016. We identify one class with intensive technology and one class with extensive technology for each of the two sub‐samples. The investigation of inefficiency effects shows that modeling production heterogeneity could help better target the CAP, since the relationship between operational subsidies and farms' efficiency differs depending on whether or not production heterogeneity is accounted for.

Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.1111/agec.12683

Related works:
Working Paper: Modeling heterogeneous technologies in the presence of sample selection: The case of dairy farms and the adoption of agri‐environmental schemes in France (2022) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:agecon:v:53:y:2022:i:3:p:422-438

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0169-5150

Access Statistics for this article

Agricultural Economics is currently edited by W.A. Masters and G.E. Shively

More articles in Agricultural Economics from International Association of Agricultural Economists Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2024-02-07
Handle: RePEc:bla:agecon:v:53:y:2022:i:3:p:422-438