The paper investigates the impact of subsidies and of para-agriculture on the technical efficiency of organic farms in Switzerland, Austria and Southern Germany. The data-set consists of bookkeeping data with 1,704 observations in the years 2003 to 2005. Technical efficiency is modelled using a...

We propose a two-stage procedure for finding realistic benchmarks for nonparametric efficiency analysis. On the first stage the efficient DMUs are figured out by a free disposal hull approach. These benchmarks are directly targeted by directional distance functions and the extent of inefficiency...

We discuss the nonparametric approach to profit efficiency analysis at the firm and industry levels in the absence of complete price information, and propose two new insights. First, choosing one commodity (whose price is known) as a numeraire good enables us to measure profit inefficiency in...

Comprehensive studies on the impact of market access on port efficiency are scarce, and the problem that market access indicators are potentially endogenous lacks treatment in maritime economics. This paper offers both theoretical and empirical advances to fill these research gaps. First, it...

Electricity distribution network is a prime example of a natural local monopoly. In many countries, electricity distribution is regulated by the government. In Finland, the regulator estimates the efficient cost frontier using the data envelopment analysis (DEA) and stochastic frontier analysis...

The field of production frontier estimation is divided between the parametric Stochastic Frontier Analysis (SFA) and the deterministic, nonparametric Data Envelopment Analysis (DEA). This paper explores an amalgam of DEA and SFA that melds a nonparametric frontier with a stochastic composite...

The literature of productive efficiency analysis is divided into two main branches: the parametric Stochastic Frontier Analysis (SFA) and nonparametric Data Envelopment Analysis (DEA). This paper attempts to combine the virtues of both approaches in a unified framework. We follow the SFA...

This paper develops a novel statistic for firm efficiency called efficiency depth that allows for statistical inference in case of errors-in-variables. We derive statistical tests that require minimal statistical assumptions; neither the sample distribution nor the noise level is required. An...

Production analysis matters in agricultural economics because technology shapes developments in agriculture as well as in related sectors, such as the food industry. Pro- ductivity and technical efficiency (TE) are key aspects in this context. In empirical analysis, inefficiency can be...