TY - JOUR
T1 - Measuring the impacts of production risk on technical efficiency
T2 - A state-contingent conditional order-m approach
AU - Serra, Teresa
AU - Oude Lansink, Alfons
N1 - Funding Information:
The authors gratefully acknowledge financial support from Instituto Nacional de Investigaciones Agrícolas (INIA) and the European Regional Development Fund (ERDF), Plan Nacional de Investigación Científica, Desarrollo e Innovación Tecnológica (I + D + i), Project Reference Number RTA2012-00002-00-00.
PY - 2014/11/16
Y1 - 2014/11/16
N2 - 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 specialized 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.
AB - 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 specialized 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.
KW - Data envelopment analysis
KW - Linear programming
KW - Nonparametric order-m efficiency
KW - Risk
KW - State-contingent technology
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U2 - 10.1016/j.ejor.2014.05.020
DO - 10.1016/j.ejor.2014.05.020
M3 - Article
AN - SCOPUS:84903381331
SN - 0377-2217
VL - 239
SP - 237
EP - 242
JO - European Journal of Operational Research
JF - European Journal of Operational Research
IS - 1
ER -