The Impact of Direct Income Transfers of CAP on Greek Olive Farms' Performance: Using a Non-Monotonic Inefficiency Effects Model

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

Research output: Contribution to journalArticleAcademicpeer-review

25 Citations (Scopus)

Abstract

We analyse the impacts of direct income transfers on the 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 (subsidies, farm characteristics, etc.) on technical efficiency. The model is applied to 1995–2004 FADN data. The results show that direct transfers of the CAP had a negative and monotonic effect on technical efficiency, whereas the degree of specialisation had a non-monotonic effect on technical efficiency
Original languageEnglish
Pages (from-to)630-638
JournalJournal of Agricultural Economics
Volume62
Issue number3
DOIs
Publication statusPublished - 2011

Keywords

  • technical efficiency
  • subsidies

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