Determinants of Persistent and Transient Technical Efficiency of Milk Production in EU

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Show simple item record Trnková, Gabriela Žáková Kroupová, Zdeňka
dc.contributor.other Ekonomická fakulta cs 2020-11-25T08:54:54Z 2020-11-25T08:54:54Z
dc.identifier.issn 1212-3609
dc.description.abstract This paper deals with the estimation of technical efficiency of milk production in the EU, its decomposition and the analysis of determinants of transient and persistent efficiency. Attention was focused on specialized milk production using FADN data in the period from 2004 to 2017. The analysis is based on the four-component model that represents the most advanced approach to technical efficiency analysis at present and the multi-step estimation procedure extended by technical efficiency determinants. To the best of our knowledge, this is the first application of this model based on the multi-step estimation with the inclusion of technical efficiency determinants on this type of specialization in the EU. The results show that the overall technical efficiency achieves the mean value of 68% and is relatively dense around the mean. The persistent inefficiency poses a greater problem for dairy production and varies considerably across European regions compared to the transient part. Based on the assessment of the development of transient efficiency, it is evident that it is influenced by the situation on the dairy market, in particular by the milk crises. The most effective conversion of inputs to outputs is achieved in the Netherlands, the United Kingdom, and Belgium and is least burdened with institutional and structural rigidities. The results show that transient efficiency is positively influenced by paid labour share, rented land share, level of modernization and level of off-farm activities and negatively by the level of subsidies on livestock. The positive effect of the economies of size on persistent efficiency is not proved. However, specialization, despite the higher vulnerability of specialized farms to price shocks, affects persistent efficiency positively. Localization of farms in LFAs, as expected, has a negative impact on persistent technical efficiency. en
dc.format text
dc.language.iso en
dc.publisher Technická Univerzita v Liberci cs
dc.publisher Technical university of Liberec, Czech Republic en
dc.relation.ispartof Ekonomie a Management cs
dc.relation.ispartof Economics and Management en
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dc.rights CC BY-NC
dc.subject technical efficiency en
dc.subject transient efficiency en
dc.subject persistent efficiency en
dc.subject four-component model en
dc.subject determinants en
dc.subject milk production en
dc.subject.classification C23
dc.subject.classification D24
dc.subject.classification Q12
dc.title Determinants of Persistent and Transient Technical Efficiency of Milk Production in EU en
dc.type Article en
dc.publisher.abbreviation TUL
dc.relation.isrefereed true
dc.identifier.doi 10.15240/tul/001/2020-4-003
dc.identifier.eissn 2336-5604
local.relation.volume 23
local.relation.issue 4
local.relation.abbreviation E+M cs
local.relation.abbreviation E&M en
local.faculty Faculty of Economics
local.citation.spage 39
local.citation.epage 54
local.access open
local.fulltext yes
local.filename EM_4_2020_3

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