Analyzing the impact of direct subsidies on the performance of the Greek olive farms with a non-monotonic efficiency effects model

X. Zhu, G. Karagiannis, A.G.J.M. Oude Lansink

Research output: Contribution to conferenceConference paperAcademic

Abstract

We analyse the impacts of the CAP reforms on technical efficiency of Greek olive farms. We use a production frontier function and a non-monotonic inefficiency effects model which incorporates the influences of exogenous variables on the mean and the variances of farm efficiency. We formulate policy variables (e.g. the direct subsidies) and farm characteristics as explanatory variables in the inefficiency effects model. We use the 1995-2004 FADN data to estimate the production frontier, to derive technical efficiency, and to determine the effects of the explanatory variables. The study shows that the 10-year average technical efficiency of olive farms is 69%. Direct transfers have a negative and monotonic effect on technical efficiency, while the degree of specialization has a non-monotonic effect on technical efficiency.
Original languageEnglish
Publication statusPublished - 2008
Event12th EAAE Congress: People, Food and Environments: Global Trends and European Strategies - Ghent
Duration: 26 Aug 200829 Aug 2008

Conference

Conference12th EAAE Congress: People, Food and Environments: Global Trends and European Strategies
CityGhent
Period26/08/0829/08/08

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Zhu, X., Karagiannis, G., & Oude Lansink, A. G. J. M. (2008). Analyzing the impact of direct subsidies on the performance of the Greek olive farms with a non-monotonic efficiency effects model. Paper presented at 12th EAAE Congress: People, Food and Environments: Global Trends and European Strategies, Ghent, .