A generalized true random-effects model with spatially autocorrelated persistent and transient inefficiency
Ioannis Skevas and
European Journal of Operational Research, 2021, vol. 293, issue 3, 1131-1142
This study extends the generalized true random-effects model to account for spatial dependence in persistent and transient inefficiency. For this purpose, a model with spatially autocorrelated persistent and transient inefficiency components is specified. Additionally, spatial dependence is also modeled in the noise component to account for uncontrolled spatial correlations. The proposed model is applied to a panel dataset of Wisconsin dairy farms observed between 2009 and 2017 and estimated using Bayesian techniques. Apart from the traditional output-input quantities, the utilized dataset also contains information on the exact location of farms based on their latitude and longitude coordinates as well as on environmental factors. The empirical findings suggest low levels of both persistent and transient inefficiency for farms. Additionally, all components exhibit spatial dependence with its magnitude being more than double for persistent inefficiency.
Keywords: OR in agriculture; Generalized true random-effects; Spatial dependence; Bayesian inference; Dairy farms (search for similar items in EconPapers)
JEL-codes: C11 C23 D22 Q12 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:293:y:2021:i:3:p:1131-1142
Access Statistics for this article
European Journal of Operational Research is currently edited by Roman Slowinski, Jesus Artalejo, Jean-Charles. Billaut, Robert Dyson and Lorenzo Peccati
More articles in European Journal of Operational Research from Elsevier
Bibliographic data for series maintained by Catherine Liu ().