The influence of public subsidies on farm technical efficiency: A robust conditional nonparametric approach

Jean Joseph Minviel and Kristof De Witte

No 16-10, Working Papers SMART from INRAE UMR SMART

Abstract: The objective of this paper is to assess the impact of public subsidies on farm technical efficiency using recent advances in nonparametric efficiency analysis. To this end, we use robust conditional frontier techniques as well as insights from recent developments in nonparametric econometrics. The paper contributes to the ongoing methodological discussion on how to model the effect of public subsidies on farmers’ production decisions. The analysis is conducted using an unbalanced panel data of 1,604 observations from 313 French farms located in the French region Meuse over the period 2006-2011. The estimates indicate that public subsidies influence negatively the conditional technical efficiency of farms. This suggests that public subsidies affect the range of attainable values for the inputs and outputs, and hence the shape of the boundary of the attainable set, as well as the distribution of inefficiencies inside the attainable set.

Keywords: data envelopment analysis; conditional efficiency; nonparametric econometrics; public subsidies; farms (search for similar items in EconPapers)
JEL-codes: C54 D24 Q12 Q18 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2016
New Economics Papers: this item is included in nep-agr and nep-eff
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://ageconsearch.umn.edu/bitstream/250207/2/wp16-10.pdf (application/pdf)

Related works:
Journal Article: The influence of public subsidies on farm technical efficiency: A robust conditional nonparametric approach (2017)
Working Paper: The influence of public subsidies on farm technical efficiency: A robust conditional nonparametric approach (2016)
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:rae:wpaper:201610

Access Statistics for this paper

More papers in Working Papers SMART from INRAE UMR SMART Contact information at EDIRC.
Bibliographic data for series maintained by Anne Chauvel ().