کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
479803 | 1446020 | 2014 | 6 صفحه PDF | دانلود رایگان |
• We study the influence of risk on farms’ technical efficiency levels.
• An extension of the order-m efficiency scores is used.
• The state-contingent framework is used to model risk.
• The empirical application focuses on a sample of Catalan arable crop farms.
• Accounting for production risks increases the technical performance.
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.
Journal: European Journal of Operational Research - Volume 239, Issue 1, 16 November 2014, Pages 237–242