Uncertainty and technical efficiency in Finnish agriculture: a state-contingent approach

Celine Nauges, Christopher O'Donnell and John Quiggin

European Review of Agricultural Economics, 2011, vol. 38, issue 4, 449-467

Abstract: In this article, we present one of the first real-world empirical applications of state-contingent production theory. Our state-contingent behavioural model allows us to analyse production under both inefficiency and uncertainty without regard to the nature of producer risk preferences. Using farm data for Finland, we estimate a flexible production model that permits substitutability between state-contingent outputs. We test empirically and reject an assumption that has been implicit in almost all efficiency studies conducted in the last three decades, namely that the production technology is output-cubical, i.e. that outputs are not substitutable between states of nature. , Oxford University Press.

Date: 2011
References: Add references at CitEc
Citations: View citations in EconPapers (21)

Downloads: (external link)
http://hdl.handle.net/10.1093/erae/jbr014 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Uncertainty and Technical Efficiency in Finnish Agriculture: A State-contingent Approach (2010)
Working Paper: Uncertainty and technical efficiency in Finnish agriculture: a state-contingent approach (2010)
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:oup:erevae:v:38:y:2011:i:4:p:449-467

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

European Review of Agricultural Economics is currently edited by Timothy Richards, Salvatore Di Falco, Céline Nauges and Vincenzina Caputo

More articles in European Review of Agricultural Economics from Oxford University Press and the European Agricultural and Applied Economics Publications Foundation Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().