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Modeling heterogeneity in production models: empirical evidence from individual farming in Poland

Modellierung der Heterogenität der Faktorqualitäten in Produktionsfunktionen: Empirische Ergebnisse für landwirtschaftliche Familienbetriebe in Polen

Heinrich Hockmann (), Agata Pieniadz and Lech Goraj

No 109, IAMO Discussion Papers from Leibniz Institute of Agricultural Development in Transition Economies (IAMO)

Abstract: This discussion paper deals with the estimation of a random coefficient model. The virtue of this approach is that it considers firm heterogeneity, which conventional SFA models do not. Applying the model to Polish farms, the results indicate that the conventional random and fixed effect models overestimate the inefficiency score. In addition, the reasons for inefficiency are analyzed. It is shown that despite the fragmentation of Polish agriculture, there is no evidence for scale inefficiency. Moreover, inefficiency could partly be attributed to factors, which affect the management input and requirements on farms.

Keywords: random component model; Poland; management; SFA; Random Parameter Modell; Polen; Management (search for similar items in EconPapers)
JEL-codes: Q12 D24 (search for similar items in EconPapers)
Date: 2007
References: View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

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