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The influence of management characteristics on the technical efficiency of wheat farmers in eastern England
Author(s) -
Wilson Paul,
Hadley David,
Asby Carol
Publication year - 2001
Publication title -
agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.29
H-Index - 82
eISSN - 1574-0862
pISSN - 0169-5150
DOI - 10.1111/j.1574-0862.2001.tb00034.x
Subject(s) - production (economics) , frontier , index (typography) , production–possibility frontier , economics , agricultural economics , stochastic frontier analysis , estimation , crop production , panel data , production function , econometrics , agricultural science , microeconomics , geography , environmental science , agriculture , computer science , management , archaeology , world wide web
Technical efficiency of wheat farms in eastern England is measured through the estimation of a stochastic frontier production function using panel data for the 1993–1997 crop years. Variations in the technical efficiency index across production units are explained through a number of managerial and farm characteristic variables following Battese and Coelli (1995) [Empirical Econ. 20, 325–332] and incorporating the spirit of Rougoor et al. (1998) [Agric. Econ. 18, 261–272]. The technical efficiency index across production units ranges from 62 to 98%. The objectives of maximising annual profits and maintaining the environment are positively correlated with, and have the largest influence on, technical efficiency. Moreover, those farmers who seek information, have more years of managerial experience, and have a large farm are also associated with higher levels of technical efficiency. Future studies that seek to explain variation in technical efficiency should include further aspects of the managerial decision‐making process.