Abstract
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.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 237-242 |
| Number of pages | 6 |
| Journal | European Journal of Operational Research |
| Volume | 239 |
| Issue number | 1 |
| DOIs | |
| State | Published - Nov 16 2014 |
| Externally published | Yes |
Keywords
- Data envelopment analysis
- Linear programming
- Nonparametric order-m efficiency
- Risk
- State-contingent technology
ASJC Scopus subject areas
- General Computer Science
- Modeling and Simulation
- Management Science and Operations Research
- Information Systems and Management