Evaluating dynamic productivity change of US farm supply cooperatives

Theodoros Skevas and Jasper Grashuis

Agribusiness, 2023, vol. 39, issue 4, 1238-1253

Abstract: This article estimates dynamic productivity change and its components (i.e., technical inefficiency change, scale inefficiency change, and technical change) for a sample of ~700 US farm supply cooperatives over the 2005–2017 period. Estimation is undertaken using a directional distance function that accounts for the presence of adjustment costs associated with investments in quasi‐fixed factors of production. A bootstrap regression is then used to determine the factors affecting dynamic productivity change and its components. Results show that the sample cooperatives experienced a modest decline in productivity over the study period, on average. The analysis of productivity change decompositions suggests that productivity decline is mainly due to the negative contribution of technical inefficiency change. Results further reveal that ignoring adjustment costs when modeling cooperatives' performance leads to distortions in estimates of productivity and its components. The regression analysis results show that years of operation and a higher share of energy products in supply turnover are positively related to productivity change, technical inefficiency change, and scale inefficiency change. [EconLit Citations: Q12, D22, C61].

Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/agr.21812

Related works:
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:wly:agribz:v:39:y:2023:i:4:p:1238-1253

Access Statistics for this article

Agribusiness is currently edited by Ronald W. Cotterill

More articles in Agribusiness from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().