Hostname: page-component-78c5997874-g7gxr Total loading time: 0 Render date: 2024-11-10T22:06:44.116Z Has data issue: false hasContentIssue false
  • English
  • Français

Evading Farm Support Reduction via Efficient Input Use: The Case of Greek Cotton Growers

Published online by Cambridge University Press:  28 April 2015

Christos J. Pantzios ,
Stelios Rozakis  and
Vangelis Tzouvelekas
Christos J. Pantzios
Affiliation:
Department of Economics, University of Patras, Greece. He tragically passed away while the paper was in the final stage of being written. The paper is dedicated to his memory.
Stelios Rozakis
Affiliation:
Department of Agricultural Economics and Rural Development, Agricultural University of Athens
Vangelis Tzouvelekas
Affiliation:
Department of Economics, University of Crete, Greece
Get access Rights & Permissions [Opens in a new window]

Abstract

The present paper examines the importance that efficient resource use may have for cotton growers under the current EU policy regime. To that end, input-oriented technical and scale efficiency scores for a sample of 172 cotton-growing farms are empirically quantified. The results suggest that cotton farms in the sample are not efficient mainly due to the nature of the policy regime governing the sector throughout EU. By becoming efficient, the co-responsibility levy will be reduced by 18.3% and farms may increase their profits by 50.1% on the average.

Keywords

co-responsibility levycotton farmsgoal programmingGreecescale and technical efficiencystochastic frontier modelD24Q12Q16C61
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 38 , Issue 3 , December 2006 , pp. 555 - 574
Copyright
Copyright © Southern Agricultural Economics Association 2006

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Aigner, D.J., Lovell, C.A.K., and Schmidt, P.. “Formulation and Estimation of Stochastic Frontier Production Function Models.” Journal of Econometrics 6(1977):21–37.CrossRefGoogle Scholar
Amara, N., Traore, N., Landry, R., and Romain, R.. “Technical Efficiency and Farmers' Attitudes toward Technological Innovation: The Case of the Potato Farmers in Quebec.” Canadian Journal of Agricultural Economics 47(1999):31–43.CrossRefGoogle Scholar
Atkinson, S.E., and Cornwell, C.. “Estimation of Output and Input Technical Efficiency Using a Flexible Functional Form and Panel Data.” International Economic Review 35(1994):245-55.CrossRefGoogle Scholar
Banker, R.D., Chames, A., and Cooper, W.W.. “Some Models for Estimating Technical and Scale Inefficiencies.” Management Science 39(1984):1261-64.Google Scholar
Battese, G.E. “Frontier Production Functions and Technical Efficiency: A Survey of Empirical Applications in Agricultural Economics.” Agricultural Economics 7(1992): 185–208.CrossRefGoogle Scholar
Battese, G.E., and Coelli, T.J.. “Prediction of Firm-level Technical Efficiencies with a Generalized Frontier Production Function and Panel Data.” Journal of Econometrics 38(1988):387-99.CrossRefGoogle Scholar
Battese, G.E., and Coelli, T.J.. “A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data.” Empirical Economics 20(1995):325-32.CrossRefGoogle Scholar
Bravo-Ureta, B.E., and Pinheiro, A.E.. “Efficiency Analysis of Developing Country Agriculture: A Review of the Frontier Function Literature.” Agricultural and Resources Economics Review 22(1993):88–101.CrossRefGoogle Scholar
Commission of the European Communities (CEC). Towards Sustainability: A European Community Programme of Policy and Action in Relation to the Environment and Sustainable Development, COM (92), Brussels, 1992.Google Scholar
Deprins, D., and Simar, L.. “Estimating Technical Inefficiencies with Corrections for Environmental Conditions with an Application to Railway Companies.” Annals of Public and Cooperative Economics 60(1989):81–102.CrossRefGoogle Scholar
Färe, R., and Lovell, C.A.K.. “Measuring the Technical Efficiency of Production.” Journal of Economic Theory 19(1978): 150-62.CrossRefGoogle Scholar
Färe, R., Grosskopf, S., and Lovell, C.A.K.. “The Structure of Technical Efficiency.” Scandinavian Journal of Economics 85(1983): 181-90.CrossRefGoogle Scholar
Färe, R., Grosskopf, S., and Lovell, C.A.K.. “Scale Elasticity and Scale Efficiency.” Journal of Institutional and Theoretical Economics 144(1988): 721-29.Google Scholar
Featherstone, A.M., Langemeier, M.R., and Ismet, M.. “A Nonparametric Analysis of Efficiency for a Sample of Kansas Cow Farms.” Journal of Agricultural and Applied Economics 29(1997): 175-84.CrossRefGoogle Scholar
Forsund, F.R. “On the Calculation of the Scale Elasticity in DEA Models.” Journal of Productivity Analysis 7(1996):283–302.CrossRefGoogle Scholar
Forsund, F.R., Lovell, C.A.K., and Schmidt, P.. “A Survey of Frontier Production Functions and of Their Relationship to Efficiency Measurement.” Journal of Econometrics, 13(1980):5–25.CrossRefGoogle Scholar
Fousekis, P., Spathis, P., Tsiboukas, K., and Tsoukalas, S.. “Technical and Scale Efficiency in Cotton Production: DEA Evidence for Greece.” Agricoltura Mediterranea 131(2001):9–17.Google Scholar
Frisch, R.Theory of Production. Dordrecht: D. Reidel, 1965.CrossRefGoogle Scholar
Giannakas, K., Schoney, R., and Tzouvelekas, V.. “Technical Efficiency, Technological Change and Output Growth of Wheat Farms in Saskatchewan.” Canadian Journal of Agricultural Economics 49(2001): 135-52.CrossRefGoogle Scholar
Greene, W.H. “A Gamma-Distributed Stochastic Frontier Model.” Journal of Econometrics 46(1990): 141-64.CrossRefGoogle Scholar
Greene, W.H. “Frontier Production Functions.” Handbook of applied econometrics, Volume II: Microeconomics. Pesaran, M.H. and Schmidt, P., eds. Oxford: Blackwell Publishers, 1999.Google Scholar
van Ittersum, M.K., and Rabbigne, R.. “Concepts in Production Ecology for Analysis and Quantification of Agricultural Input-Output Combinations.” Field Crops Research 52(1997): 197–208.CrossRefGoogle Scholar
Jaforullah, M., and Whiteman, J.. “Scale Efficiency in the New Zealand Dairy Industry: A Nonparametric Approach.” Australian Journal of Agricultural and Resource Economics 43(2000):523-41.CrossRefGoogle Scholar
Jondrow, J., Lovell, C.A.K., Materov, L.S., and Schmidt, P.. “On the Estimation of Technical Inefficiency in the Stochastic Frontier Production Function Model.” Journal of Econometrics 19(1982):233-38.CrossRefGoogle Scholar
Institute for Agriculture and Trade Policy. WTO Agreement on Agriculture: A Decade of Dumping. Hong Kong, 2005.Google Scholar
Kalaitzadonakes, N.G., Wu, S., and Ma, J.C.. “The Relationship Between Technical Efficiency and Firm Size Revisited.” Canadian Journal of Agricultural Economics 40(1992):427-42.CrossRefGoogle Scholar
Karagiannis, G., and Sarris, A.. “Measuring and Explaining Scale Efficiency with the Parametric Approach: The Case of Greek Cotton Growers.” Agricultural Economics (forthcoming 2006).Google Scholar
Karagiannis, G., and Pantzios, C.J.. “To Comply or Not to Comply With Policy Regulations–The Case of Greek Cotton Growers: A Note.” Journal of Agricultural Economics 53(2002):345-51.CrossRefGoogle Scholar
Kodde, D.A., and Palm, F.C.. “Wald Criteria for Jointly Testing Equality and Inequality Restrictions.” Econometrica 54(1986):1243-48.CrossRefGoogle Scholar
Kopp, R.J. “The Measurement of Productive Efficiency: A Reconsideration.” Quarterly Journal of Economics 96(1981):477–503.CrossRefGoogle Scholar
Kumbhakar, S.C., and Lovell, C.A.K.. Stochastic Frontier Analysis. Cambridge: Cambridge University Press, 2000.CrossRefGoogle Scholar
Kumbhakar, S.C., Ghosh, S., and McGuckin, J.T.. “A Generalized Production Frontier Approach for Estimating Determinants of Inefficiency in U.S. Dairy Farms.” Journal of Business and Economic Statistics 9(1991):279-86.Google Scholar
Laws, F. “Brazilian WTO Gains May Be Delayed.” Southwest Farm Press, May 20(2004):7.Google Scholar
Llewelyn, R.V., and Williams, J.R.. “Nonparametric Analysis of Technical, Pure Technical and Scale Efficiencies for Food Crop Production in East Java, Indonesia.” Agricultural Economics 15(1996):113-26.CrossRefGoogle Scholar
Meeusen, W., and Van der Broeck, J.. “Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error.” International Economic Review 18(1977):435-44.CrossRefGoogle Scholar
Ogryczak, W., and Lahoda, S.. “Aspiration/Reservation Based Decision Support–A Step Beyond Goal Programming.” Journal of Multi-Criteria Decision Analysis 1(1992): 101–17.CrossRefGoogle Scholar
Ray, S.C. “Measuring Scale Efficiency from a Translog Production Function.” Journal of Productivity Analysis 11(1998):183-94.CrossRefGoogle Scholar
Reinhard, S., Lovell, C.A.K., and Thijssen, G.J.. “Econometric Estimation of Technical and Environmental Efficiency: An Application to Dutch Dairy Farms.” American Journal of Agricultural Economics 81(1999):44–60.CrossRefGoogle Scholar
Reinhard, S., Lovell, C.A.K., and Thijssen, G.J.. “Analysis of Environmental Efficiency Variation.” American Journal of Agricultural Economics 84(2002): 1054-65.CrossRefGoogle Scholar
Ritter, C., and Simar, L.. “Pitfalls of Normal-Gamma Stochastic Frontier Models.” Journal of Productivity Analysis 8(1997): 167-82.CrossRefGoogle Scholar
Romain, R., and Lambert, R.. “Efficacité Technique et Coûts de Production Dans Les Secteurs Laitiers du Quebec et de l'Ontario.” Canadian Journal of Agricultural Economies 43(1995): 37–55.CrossRefGoogle Scholar
Russell, R.R. “Distance Functions in Consumer and Producer Theory.” Index Numbers: Essays in Honour of Sten Malmquist. Boston: Kluwer, 1998.Google Scholar
Sapounas, G.The Development of the Greek Agricultural Sector: Problems and Prospects. Athens: Agricultural Bank of Greece (in Greek), 1991.Google Scholar
Schultz, T.W. “The Value of Ability to Deal With Disequilibria.” Journal of Economic Literature 13(1975):827-96.Google Scholar
Timmer, C.P. “Using a Probabilistic Frontier Production Function to Measure Technical Efficiency.” Journal of Political Economy, 79(1971): 776-94.CrossRefGoogle Scholar
Tian, W., and Wan, G.H.. “Technical Efficiency and Its Determinants in China Grain Production.” Journal of Productivity Analysis 13(2000): 159-74.CrossRefGoogle Scholar
Wadud, A., and White, B.. “Farm Household Efficiency in Bangladesh: A Comparison of Stochastic Frontier and DEA Models.” Applied Economics 32(2000): 1665-73.CrossRefGoogle Scholar
Weersink, A., Turvey, C.G., and Godah, A.. “Decomposition Measures of Technical Efficiency for Ontario Dairy Farms.” Canadian Journal of Agricultural Economics 38(1990):439-56.CrossRefGoogle Scholar
Welch, F. “Education in Production.” Journal of Political Economy 8(1970):35–59.CrossRefGoogle Scholar
Williams, H.P.Model Building in Mathematical Programming. Boston: Wiley, 1999.Google Scholar