Assessing the Efficiency of Sheep Farming in Mountainous Areas of Greece. A Non Parametric Approach

Panos Fousekis · Pavlos Spathis · Konstantinos Tsimboukas

33 citations0/0 files storedRePEc: Research Papers in Economics

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Efficiency Analysis Using DEA Agricultural economics and policies Livestock Farming and Management

Abstract

The objective of this paper is the measurement and decomposition of the overall efficiency of sheep farming in mountainous areas of Greece. To this end, both a Constant Returns to Scale (CRS) and a Variable Returns to Scale (VRS) DEA model has been applied to a sample to 101 farms located in the mountainous areas of Epirus, Sterea, and Thessaly. The empirical results suggest: a) the average overall efficiency ratio in the sample is about 80 percent; b) the pure technical and the scale efficiency are of almost equal importance in the determination of the overall efficiency. Therefore, CRS DEA models will tend to underestimate systematically the level of pure technical efficiency; c) there are differences in the overall efficiency ratios across the three regions stemming mainly from differences in pure technical efficiency.

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References

1978Measuring the efficiency of decision making units 1984Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis 1995A model for technical inefficiency effects in a stochastic frontier production function for panel data 1988Prediction of firm-level technical efficiencies with a generalized frontier production function and panel data 1990Recent developments in the econometric estimation of frontiers 2000DEA and its use in the regulation of water companies 1996Efficiency analysis with panel data: A study of Portuguese dairy farms 1997Agriculture's environmental externalities: DEA evidence for French agriculture

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