Files
Abstract
Technical efficiency of wheat farms in eastern England is measured through the estimation of a stochastic frontier production
function using panel data for the 1993-1997 crop years. Variations in the technical efficiency index across production units are
explained through a number of managerial and farm characteristic variables following Battese and Coelli (1995) [Empirical
Econ. 20, 325-332] and incorporating the spirit ofRougoor eta!. (1998) [Agric. Econ. 18, 261-272]. The technical efficiency
index across production units ranges from 62 to 98%. The objectives of maximising annual profits and maintaining the
environment are positively correlated with, and have the largest influence on, technical efficiency. Moreover, those farmers
who seek information, have more years of managerial experience, and have a large farm are also associated with higher levels
of technical efficiency. Future studies that seek to explain variation in technical efficiency should include further aspects of
the managerial decision-making process. © 2001 Elsevier Science B.V. All rights reserved.