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Three decades of productivity change in French beef production: a Färe‐Primont index decomposition
Author(s) -
Dakpo K Hervé,
Jeanneaux Philippe,
Latruffe Laure,
Mosnier Claire,
Veysset Patrick
Publication year - 2018
Publication title -
australian journal of agricultural and resource economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 1364-985X
DOI - 10.1111/1467-8489.12264
Subject(s) - total factor productivity , technological change , index (typography) , economics , productivity , technical change , econometrics , production (economics) , technical progress , malmquist index , agricultural economics , macroeconomics , computer science , world wide web
The Färe‐Primont index is used to evaluate total factor productivity ( TFP ) change and its components for a sample of French suckler cow farms in grassland areas in 1985–2014. The results reveal an increase in TFP of 6.6 per cent over the whole observation period, with technological progress being the major source of productivity growth. Meanwhile, efficiency decreased. Farms experienced great technological progress from 1991 to 2000. From a methodological point of view, the comparison with results obtained with Malmquist indexes shows similar trends but different magnitudes, with the Malmquist index overestimating the TFP and technological changes compared to the Färe‐Primont index. In addition, the use of a sequential approach that restricts technological change to being positive or null allows for the precise calculation of technology changes, disregarding the effects of external conditions that are captured in efficiency changes. Finally, the estimation of full dimensional efficient facets ( FDEF s) that guarantees the positivity of all shadow prices used to assess the mix efficiency component of TFP change is promising.