Measuring the impacts of production risk on technical efficiency: a state-contingent conditional order-m approach

This article studies the influence of risk on farms’ technical efficiency levels. The analysis extends the order-m efficiency scores approach proposed by Daraio and Simar (2005) to the state-contingent framework. The empirical application focuses on cross section data of Catalan specialised crop farms from the year 2011. Results suggest that accounting for production risks increases the technical performance. A 10% increase in output risk will result in a 2.5% increase in average firm technical performance.


Issue Date:
2014-08
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/182661
Total Pages:
13




 Record created 2017-04-01, last modified 2017-08-27

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