RT info:eu-repo/semantics/article
T1 Profit efficiency and its determinants in the agricultural sector: A Bayesian approach.
A1 Arbelo Pérez, Marta
A1 Pérez Gómez, María del Pilar
A1 Arbelo Álvarez, Antonio Manuel
A2 Dirección de Empresas e Historia Económica
A2 Grupo de investigación: Eficiencia y ventaja competitiva.
Instituto de investigación: Instituto Universitario de la Empresa (IUDE).
K1 Bayesian estimation
K1 heterogeneity
K1 overall performance
K1 stochastic frontier approach
AB Most empirical studies evaluating efficiency in the agricultural sector estimate cost efficiency, assuming homogeneity across firms. However, achieving the goal of profit maximisation requires both minimising costs and maximising revenue. Unlike cost efficiency, the concept of profit efficiency considers the errors on both the input side and the output side, and thus, it is more appropriate for evaluating the overall performance of firms. This paper estimates profit efficiency and its determinants in the agricultural sector in Spain using a Bayesian stochastic frontier model with random coefficients. This methodology adequately captures the heterogeneity across firms in the industry. The results reveal, firstly, that agricultural firms in Spain are operating with an average profit inefficiency of 35.78% and, secondly, that this inefficiency is affected, albeit unevenly, by the size and age of the farm. Finally, the implications of these results for managers and public policies are discussed.
YR 2023
FD 2023
LK http://riull.ull.es/xmlui/handle/915/38733
UL http://riull.ull.es/xmlui/handle/915/38733
LA en
DS Repositorio institucional de la Universidad de La Laguna
RD 27-nov-2024