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Self-Dual Stochastic Production Frontiers and Decomposition of Output Growth: The Case of Olive-Growing Farms in Greece

Published online by Cambridge University Press:  15 September 2016

Giannis Karagiannis  and
Vangelis Tzouvelekas
Giannis Karagiannis
Affiliation:
Department of Economics at the University of Ioannina, Greece
Vangelis Tzouvelekas
Affiliation:
Department of Economics at the University of Ioannina, Greece
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Abstract

This paper provides a decomposition of output growth among olive-growing farms in Greece during the period 1987–1993 by integrating Bauer's (1990) and Bravo-Ureta and Rieger's (1991) approaches. The proposed methodology is based on the use of self-dual production frontier functions. Output growth is attributed to the size effect, technical change, changes in technical and input allocative inefficiency, and the scale effect. Empirical results indicate that the scale and the input allocative inefficiency effects, which were not taken into account in previous studies on output growth decomposition analysis, have caused a 7.3% slowdown and a 11.0% increase in output growth, respectively. Technical change was found to be the main source of TFP growth while both technical and input allocative inefficiency decreased over time. Still though, a 56.5% of output growth is attributed to input growth.

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Type
Articles
Information
Agricultural and Resource Economics Review , Volume 30 , Issue 2 , October 2001 , pp. 168 - 178
Copyright
Copyright © 2001 Northeastern Agricultural and Resource Economics Association 

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