4 research outputs found

    Modeling heterogeneity in production models: empirical evidence from individual farming in Poland

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    This discussion paper deals with the estimation of a random coefficient model. The virtue of this approach is that it considers firm heterogeneity, which conventional SFA models do not. Applying the model to Polish farms, the results indicate that the conventional random and fixed effect models overestimate the inefficiency score. In addition, the reasons for inefficiency are analyzed. It is shown that despite the fragmentation of Polish agriculture, there is no evidence for scale inefficiency. Moreover, inefficiency could partly be attributed to factors, which affect the management input and requirements on farms. -- G E R M A N V E R S I O N: Das vorliegende Diskussionspapier befasst sich mit Schätzung von Random Parameter Modellen in Rahmen von Frontier Analysen. Ein wesentlicher Vorteil dieses Ansatzes liegt darin, dass er im Gegensatz zu den konventionellen SFA die Heterogenität der Untersuchungseinheiten berücksichtigt. Die empirische Analyse bezieht sich auf landwirtschaftliche Betriebe in Polen. Die Ergebnisse deuten darauf hin, dass die konventionellen Random und Fixed Effect Modelle das Niveau der Inneffizienz überschätzen. Weiterhin wurden die Ursachen der Ineffizienz untersucht. Obwohl die polnische Landwirtschaft sehr zersplittert ist, lieferten die Ergebnisse keinen statistisch gesicherten Beweis für Vorliegen von Skalenineffizienzen. Die Ursachen der Ineffizienzen liegen dagegen in Faktoren, welche auf unternehmerische Fähigkeiten des Betriebsleiters sowie betriebsorganisatorische Aspekte zurückgeführt werden können.random component model,Poland,management,SFA,Random Parameter Modell,Polen,Management

    Exploring the Flexibility of Polish Family Farms during Transition

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    Based on farm panel data we empirically investigate the determinants of Polish farm households' flexibility from 1994 to 2001. we focus on scale flexibility (adjustment in production volume) and scope flexibility (adjustment in product mix). The findings of our fixed-effects regression provide evidence that smaller farms are more flexible, both with regard to scale and scope of production. Farms with a higher share of variable costs tended to be more flexible, while producers who specialized in capital- intensive technologies turned out to be less flexible. Some results differ significantly from the prevailing expectations, in particular we found that farms where a generational succession took place displayed less flexibility over time. Moreover, access to off-farm income and finances have opposite effects on scale and scope flexibility. An explanation for these outcomes may be the varying term structure of liquidity sources. There are relevant differences in the strategies Polish farmers used to adjust to changing environmental conditions during transition, which should be taken into account in the design of supporting policies

    MODELING HETEROGENEITY IN PRODUCTION MODELS: EMPIRICAL EVIDENCE FROM INDIVIDUAL FARMING IN POLAND

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    This discussion paper deals with the estimation of a random coefficient model. The virtue of this approach is that it considers firm heterogeneity, which conventional SFA models do not. Applying the model to Polish farms, the results indicate that the conventional random and fixed effect models overestimate the inefficiency score. In addition, the reasons for inefficiency are analyzed. It is shown that despite the fragmentation of Polish agriculture, there is no evidence for scale inefficiency. Moreover, inefficiency could partly be attributed to factors, which affect the management input and requirements on farms

    Prospects for the Agricultural Income of European Farming Systems - Summary Results

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    This study analyses the potential evolution of agricultural income and the viability of selected farming systems in the Czech Republic, Hungary, Latvia, Poland, and Romania under different Common Agricultural Policy (CAP) implementation scenarios. The assessment of the pre-Accession situation (2001-2002) reveals low economic viability and accumulation capacity for most of the farming systems considered. The study finds large negative wage gaps compared to the EU-15 average, as well as large differences among the countries analysed. Post-Accession prospects for agricultural income for the farming systems analysed are examined up to 2013. Three hypothetical policy scenarios are developed, simulating the effects of various policy alternatives on the NI/WU of the farming systems analysed. Overall, the study produces new evidence of a positive impact of the implementation of the 2003 CAP (the Single Farm Payment Scheme only) on agricultural income in selected New Member States/Candidate Countries. It also shows that, in the countries studied, the full removal of policy support at this stage of reform would harm the viability of the farming systems examined. However, targeted redistribution of policy support towards the weaker components of the farming structure would improve agricultural income
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