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Assessing the impact of different rural development policy design options on the adoption of innovation across five case studies in EU AgEcon
Bartolini, Fabio; Floridi, Matteo; Latruffe, Laure; Majewski, Edward; Nikolov, Dimitre; Polman, Nico B.P.; Viaggi, Davide.
Innovation and new technology adoption represent two central elements for the enterprise and industry development process in agriculture. The objective of the paper is to provide an ex-ante analysis of the effectiveness of alternative policy design options concerning the RDP measures intended to provide incentives for investment/innovation adoption in five case study areas across Europe. The model implemented is based on a real option approach that includes investment irreversibility and stochasticity in SFP. The results show the relevance of uncertainty in determining the timing of adoption and emphasise the importance of predictability as a major component of policy design.
Tipo: Conference Paper or Presentation Palavras-chave: Real options; Innovation; Rural development policy; Single farm payments; Uncertainty; Community/Rural/Urban Development.
Ano: 2010 URL: http://purl.umn.edu/94907
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Technical Efficiency and Productivity Change of Dairy Farms: A comparison of France and Hungary AgEcon
Fogarasi, Jozsef; Latruffe, Laure.
The paper investigates the difference in technical efficiency, productivity and technology between French and Hungarian dairy farms, in 2001 and 2002, using Data Envelopment Analysis with separate and a common frontier. Results indicate that Hungarian farmers are more clustered to their own frontier than French farms are, but French farms are, on the other hand, more scale efficient. Both samples have increased their productivity between both years, with a higher technological change for Hungary. Comparing the technology of both countries reveals that Hungarian farms have a superior technology. Under a common hypothetical technology, Hungarian farms would be the leaders but French farms would nevertheless succeed in increasing their productivity as much as...
Tipo: Conference Paper or Presentation Palavras-chave: Productivity Analysis.
Ano: 2007 URL: http://purl.umn.edu/9432
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The Use of Bootstrapped Malmquist Indices to Reassess Productivity Change Findings: An Application to a Sample of Polish Farms AgEcon
Balcombe, Kelvin George; Davidova, Sophia; Latruffe, Laure.
The paper assesses the extent to which sampling variation affects findings about Malmquist productivity change derived using Data Envelopment Analysis (DEA), in the first stage calculating productivity indices and in the second stage investigating the farm-specific change in productivity. Confidence intervals for Malmquist indices are constructed using Simar and Wilson's (1999) bootstrapping procedure. The main contribution of the paper is to account in the second stage for the information provided by the bootstrap in the first stage. The DEA standard errors of the Malmquist indices given by bootstrapping are employed in an innovative heteroscedastic panel regression, using a maximum likelihood procedure. The application is to a sample of 250 Polish farms...
Tipo: Conference Paper or Presentation Palavras-chave: Productivity; Malmquist; Bootstrapping; Second-stage regression; Poland; Productivity Analysis.
Ano: 2006 URL: http://purl.umn.edu/25793
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Investment and Financial Constraints in European Agriculture: Evidence from France, Hungary and Slovenia AgEcon
Ferto, Imre; Bakucs, Lajos Zoltan; Bojnec, Stefan; Latruffe, Laure.
The article investigates the investment and financial constraints for French, Hungarian and Slovenian farms using FADN panel data with different econometric estimation approaches. Farm gross investment is positively associated with real sales growth and cash flow implying the absence of soft budget constraint. Gross farm investment is positively associated with investment subsidies. Specific results by country are found depending on farm indebtedness. Investment subsidies can mitigate some capital market imperfections in short-term, while on long-term what is crucial is farm sale ability to successfully compete in the output market gaining sufficient cash flow for farm competitive survival and investment.
Tipo: Conference Paper or Presentation Palavras-chave: Farm investment; Soft budget constraint; Investment subsidy; Panel data analysis; Agricultural Finance; D81; D92; O12; Q12; C23.
Ano: 2011 URL: http://purl.umn.edu/114357
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Technical efficiency and technology in Eastern and Western agriculture: A comparison of crop and dairy farms in Hungary and France AgEcon
Fogarasi, Jozsef; Latruffe, Laure.
The paper investigates the difference in technical efficiency and technology between French and Hungarian farms in dairy and cereal, oilseed and protein seed (COP) sectors during 2001-2004. The analyses is performed with Data Envelopment Analysis (DEA) under separate and common frontiers. Results indicate that Hungarian dairy farmers are more clustered to their own frontier than French farms are, but that the difference is less clear in COP farming. Hungarian dairy and COP farms are less scale efficient than French farms on average. Under a common hypothetical technology, Hungarian farms would be the leaders. Reasons might be the presence of large corporate farms and a higher public support in Hungary.
Tipo: Conference Paper or Presentation Palavras-chave: Technical efficiency; Productivity factor; Dairy; COP; France; Hungary; Farm Management.
Ano: 2007 URL: http://purl.umn.edu/7810
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Converting to organic farming in France: Is there a selection problem? AgEcon
Latruffe, Laure; Nauges, Celine.
Using a sample of French crop farms during the 1999-2006 period, we test whether less technically efficient farmers are more likely to engage in organic farming in order to benefit from conversion subsidies. Despite some limitations in our data, we find no evidence of such selection effect. On the contrary, our estimation results indicate that more technically efficient farmers are more likely to convert to organic farming. This finding is found to be robust to the method of calculation of efficiency scores, either parametric or non-parametric. This study also confirms that farm’s characteristics (education, farm size and legal status) and farmers’ practices under conventional farming do impact the probability of conversion to OF.
Tipo: Conference Paper or Presentation Palavras-chave: Organic farming; Technical efficiency; Subsidies; Selection; France; Agricultural and Food Policy; Crop Production/Industries; Farm Management; Land Economics/Use.
Ano: 2010 URL: http://purl.umn.edu/109386
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Determinants for fallowing land: The case of Kosovo AgEcon
Sauer, Johannes; Davidova, Sophia; Latruffe, Laure.
The key question of this paper is why farmers in Kosovo leave land fallow when the total land of their farms is rather small and households are rather large. In order to elicit some barriers to land utilisation in Kosovo, the paper is based on a comprehensive survey carried out in 2005 investigating agricultural households’ perceptions of production and market conditions, and employs several households and farm characteristics to empirically approximate the significance of different factors for leaving land fallow and not using it for production purposes. Three different econometric models are used expected to fit the data distribution. All estimated model specifications show a statistical significance at a satisfactory level and no severe signs of...
Tipo: Conference Paper or Presentation Palavras-chave: Fallow land decision; Kosovo; Tobit regression; Fractional response regression; Zero-inflated binomial regression; Land Economics/Use; Production Economics; Q12.
Ano: 2009 URL: http://purl.umn.edu/51626
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Investment of Slovenian farms in the transition context AgEcon
Bojnec, Stefan; Latruffe, Laure.
This paper investigates the investment decisions of Slovenian farms during the transition and adjustment period to European Union (EU) membership and in particular whether these decisions were constrained by financing availability. Results from a standard and an augmented accelerator models indicate that farms’ investment decisions was based on market opportunities during the period 1994-2003, but that the decisions were constrained by financing availability.
Tipo: Conference Paper or Presentation Palavras-chave: Farms; Investment; Accelerator model; Financial constraint; Slovenia.; Agricultural and Food Policy.
Ano: 2007 URL: http://purl.umn.edu/7827
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Short-term Marginal Costs in French Agriculture AgEcon
Latruffe, Laure; Letort, Elodie.
Tipo: Conference Paper or Presentation Palavras-chave: Farm Management.
Ano: 2011 URL: http://purl.umn.edu/114385
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Agglomeration Externalities and Technical Efficiency in Pig Production AgEcon
Larue, Solene; Latruffe, Laure.
The objective of the paper is to assess the effects of agglomeration on technical efficiency of French pig farms. We use a two-stage method to evaluate the effects of agglomeration on technical efficiency. The first stage consists in calculating pig activity’s efficiency scores with the non-parametric method Data Envelopment Analysis (DEA). The second stage is a truncated regression of these scores on agglomeration variables. Data are for 899 French pig producers in 2004. Results suggest that these farms were as much affected by positive agglomeration externalities (that are knowledge spillovers due to farms’ density, and also arise from farms’ closeness to downstream market) as any other businesses. There was however no evidence of negative externalities...
Tipo: Conference Paper or Presentation Palavras-chave: Agglomeration; Externalities; Data Envelopment Analysis; Industrial Organization; Livestock Production/Industries.
Ano: 2008 URL: http://purl.umn.edu/44272
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Impact of CAP Direct Payments on French Farms’ Managerial Efficiency AgEcon
Latruffe, Laure; Guyomard, Herve; Le Mouel, Chantal.
This paper investigates the relationship between CAP direct payments and managerial efficiency for French crop and beef farms. Managerial efficiency scores are calculated using a four-step approach that allows to disentangle managerial inefficiency from other technical inefficiency components, notably what is due to unfavourable environment conditions. Then managerial efficiency scores are regressed over a set of explanatory variables, including CAP direct payments. Our empirical application, based on individual farm data and meteorological data at the municipality level for the year 2000, shows that there is a substantial component of inefficiency that is due to unfavourable conditions. Moreover, there is a significant negative relationship between...
Tipo: Conference Paper or Presentation Palavras-chave: Technical efficiency; Managerial efficiency; Subsidies; Crop farms; Beef farms; France; Agricultural and Food Policy; Farm Management.
Ano: 2008 URL: http://purl.umn.edu/44144
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Can the CAP payments facilitate the growth of individual farms in the NMS post-EU accession? AgEcon
Latruffe, Laure; Davidova, Sophia; Douarin, Elodie; Gorton, Matthew.
The impact of the introduction of the EU Single Area Payments (SAP) on farm strategy is investigated for a sample of Lithuanian farms, utilising farm accounting and survey data. The applications of two investment models demonstrate that the credit market in Lithuania was imperfect prior to accession and that some farms were financially constrained. The introduction of the SAP has a significant, positive influence on farmers’ intentions to expand their farm area compared to a baseline scenario of the continuation of pre-accession policy. The switch in policy has a more pronounced effect on farms that were previously credit constrained. While the SAP has been presented as a policy support that is decoupled from production, its introduction will nevertheless...
Tipo: Conference Paper or Presentation Palavras-chave: Single Area Payments (SAP); Common Agricultural Policy (CAP); Credit; Lithuania.
Ano: 2008 URL: http://purl.umn.edu/36861
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The impact of non-farm income on the investment in agriculture: evidence from Hungary and Slovenia AgEcon
Bakucs, Lajos Zoltan; Bojnec, Stefan; Ferto, Imre; Latruffe, Laure.
The article investigates the impact of non-farm income on the investment for Hungarian and Slovenian farms using FADN panel data for the years 2004-2008 and different econometric estimation approaches. We find that non-farm income is more important for Slovenian farms than for Hungarian farms. Farm gross investment is positively associated with real sales growth and cash flow implying the absence of soft budget constraint. Gross farm investment is negatively associated with non-farm income, but positively associated with investment subsidies. Specific results by country are found depending on growing vs. declining real sales and on farm indebtedness.
Tipo: Conference Paper or Presentation Palavras-chave: Non-farm income; Farm investment; Soft budget constraint; Panel data analysis; Community/Rural/Urban Development; D81; D92; O12; Q12; C23.
Ano: 2010 URL: http://purl.umn.edu/95318
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Technical efficiency and environmental pressures of pig farms in Hungary AgEcon
Latruffe, Laure; Desjeux, Yann; Fogarasi, Jozsef; Bakucs, Lajos Zoltan; Ferto, Imre.
Pig farming is one of the strongest polluters of water resources due to its intensive production techniques and slurry rejection. Several European countries have already introduced environmental regulations aiming at reducing the pollution caused by nitrates from agricultural sources, but not yet Hungary. This paper investigates how Hungarian pig farms would be affected if such regulations are to be enforced. We calculate farm technical efficiency separately for two types of pig production systems – namely farrowing only and farrow-to-finish farms (FAFI farms) and finishing only farms (FI farms) – using 2001 data on pig activity and Data Envelopment Analysis (DEA). We then investigate whether environmental regulations would affect the farms’ technical...
Tipo: Conference Paper or Presentation Palavras-chave: Technical efficiency; DEA; Pig farms; Nitrate pollution; Hungary; Agricultural and Food Policy; Crop Production/Industries; Environmental Economics and Policy; Farm Management; Food Security and Poverty; Land Economics/Use; Livestock Production/Industries.
Ano: 2010 URL: http://purl.umn.edu/109385
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Performance of Different Institutional Units in the Czech Republic and the Role of External Financing AgEcon
Davidova, Sophia; Latruffe, Laure; Ratinger, Tomas.
The paper analyses the relationship between the financial structure of the different institutional units in the Czech Republic and their performance, by testing several theoretical hypotheses. It employs Data Envelopment Analysis to estimate separately corporate and individual farms' technical efficiency, and investigates the effect of indebtedness on efficiency in a second stage, accounting for potential endogeneity. No substantial differences were detected between individual and corporate farms. For both groups higher long-term indebtedness negatively affects farm performance (agency theory and adjustment hypothesis), while the latter is used for appraising loan applications (credit evaluation). Case studies to banks and farms confirmed these findings.
Tipo: Conference Paper or Presentation Palavras-chave: Corporate farms; Credit; Czech Republic; Individual farms; Technical efficiency; Agribusiness.
Ano: 2005 URL: http://purl.umn.edu/24421
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Determining the Competitive Edge: Diversified Dairy Production Systems in the United States and the European Union AgEcon
Sauer, Johannes; Nehring, Richard F.; Gillespie, Jeffrey M.; Morrison Paul, Catherine J.; Blayney, Donald P.; Hallahan, Charles B.; Latruffe, Laure.
Tipo: Conference Paper or Presentation Palavras-chave: Agricultural and Food Policy; Farm Management; Livestock Production/Industries; Production Economics; Productivity Analysis.
Ano: 2010 URL: http://purl.umn.edu/61149
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CREDIT ACCESS AND BORROWING COSTS IN POLAND'S AGRICULTURAL CREDIT MARKET: A HEDONIC PRICING APPROACH AgEcon
Petrick, Martin; Latruffe, Laure.
The paper empirically investigates credit access and borrowing costs in Poland's rural financial market. We conduct an econometric analysis based on cross-sectional survey data including formal loans taken in the period 1997-1999. A hedonic regression of the effective interest rate, comprising both the nominal interest rate and additional transaction costs faced by farmers, allows the identification of the determinants of borrowing costs. These determinants can be interpreted as loan attributes and their implicit prices calculated. We proceed in two steps. In the first step, farmers' credit access is estimated by a Probit model. The second step is the hedonic regression, in which the Probit results are taken to test for selectivity. The results support the...
Tipo: Working or Discussion Paper Palavras-chave: Agricultural Finance.
Ano: 2003 URL: http://purl.umn.edu/14905
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Productivity and Subsidies in European Union Countries: An Analysis for Dairy Farms Using Input Distance Frontiers AgEcon
Latruffe, Laure; Bravo-Ureta, Boris E.; Moreira, Victor H.; Desjeux, Yann; Dupraz, Pierre.
The major objective of this paper is to examine the association between agricultural subsidies and farm efficiency using data from the European Farm Accountancy Data Network (FADN) for operations specializing on dairy. The analysis covers the 18 year period going from 1990 to 2007 and includes the following seven countries: Denmark; France; Germany; Ireland; Spain; the Netherlands; and the United Kingdom. Separate translog stochastic input distance frontiers are estimated for each country. The key results show high average technical efficiency (TE) ranging from 91.8% to 94.9%, average rates of technological change going from -0.6% to 1.4%, and increasing returns to scale (1.24 to 1.44) across all seven countries. In addition, higher subsidy and hired labor...
Tipo: Conference Paper or Presentation Palavras-chave: Subsidies; CAP; Technical efficiency; Technological progress; Returns to scale; Europe; Dairy production; Input distance frontiers; Livestock Production/Industries; Productivity Analysis.
Ano: 2011 URL: http://purl.umn.edu/114396
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Perpetuation of subsistence farming in Western Balkans: the role of factor market imperfections AgEcon
Latruffe, Laure; Davidova, Sophia; Desjeux, Yann.
The paper analyses the imperfections in output and factor markets in Kosovo that act as a barrier to farm commercialisation. On the one hand, agricultural households may not have access to output market due to an underdeveloped downstream sector. On the other, local producers might not be preferred to importers as their production level is small with a variable quality due to constraints in factor markets. Data from the Agricultural Household Survey 2005 are used. A conceptual framework is developed on the basis of a household model where non-separability results from a “wedge” between purchase and sale prices due to transaction costs. The share of the output sold in the total value of output is regressed over a set of explanatory variables. A truncated...
Tipo: Conference Paper or Presentation Palavras-chave: Subsistence farming; Agricultural households; Separability; Market imperfections; Kosovo; Q12.
Ano: 2008 URL: http://purl.umn.edu/36860
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Could small dairy farms in Switzerland compete with their French counterparts? A metafrontier analysis during 1990-2004 AgEcon
Ferjani, Ali; Latruffe, Laure.
The objective of the paper is to investigate whether Swiss farms specialised in dairy (the prevailing production of the country), which are small in international standards, would have a survival potential if they had to compete more directly with EU farms. More specifically, we investigate whether Swiss dairy farms would be able to compete with their French counterparts (located in mountainous areas, but larger than Swiss ones) in a future made of increased globalisation and reduced borders. For this we evaluate which country, during the period 1990-2004, would have been more able to use efficiently a common hypothetical technology, and would have had a more productive (own) technology. Efficiency scores and technology ratios are calculated using the...
Tipo: Conference Paper or Presentation Palavras-chave: Technical efficiency; Technology gap; Data Envelopment Analysis; Dairy farming; Switzerland; France; Agricultural and Food Policy; Productivity Analysis; Q12; D24.
Ano: 2009 URL: http://purl.umn.edu/52828
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