Technical efficiency and environmental impact of seabream and seabass farms

Sea cage farming of seabream and seabass is the most important form of aquaculture production in the Mediterranean Sea. Despite the continuous global growth in aquaculture production and demand, the economic performance of seabream and seabass companies has not followed the same trend. In recent years, companies have faced successive periods of market instability, with high volatility in supply and market prices that have strongly affected their operational margins. Despite the regional importance of this industry, only a handful of studies have examined the economic performance of these farms. In this paper, we investigate the technical efficiency and scale effects of Mediterranean aquaculture farms. Furthermore, environmental impact in terms of nutrient emissions from the farms is examined and discussed. Technical efficiency effects are analyzed using Data Envelopment Analysis (DEA), and the bootstrap procedure is used for bias correction. The results show that the mean technical efficiency could be improved by between 16% and 34%, and scale efficiency suggests that farms could improve their efficiency by operating at an optimal scale. Compared to measurements in previous studies, the environmental variables show that the emission of nutrients from the farms per kilo of fish produced has not changed over the past twenty years. Finally, policy implications suggest that more attention toward improving technical efficiency may help improve the robustness of the sector and that environmental regulation might be needed in order to improve the environmental performance of farms

Does relative efficiency matter? An analysis of market uncertainty

In this paper, we examine whether relative efficiency provides useful information for investment decisions. We find that efficient firms have lower levels of stock price volatility compared to inefficient firms. The results suggest that market participants consider relative efficiency when making investment decisions. This finding is consistent with investors speculating in inefficient firms due to potential stock return opportunities that increase the uncertainty levels of inefficient firms. Next, we test whether higher levels of investment and disinvestment in inefficient firms are due to potential investment opportunities. We find a positive relation between stock price volatility and market returns. Moreover, we find a negative relation between stock returns and relative efficiency. These findings show that inefficient firms provide high-risk, high-return potential investment opportunities; and efficient firms can be considered low-risk, low-return investment opportunities

School performance in Australia: is there a role for quasi-markets?

Recent changes to the organisation of Australia's education system have raised the possibility of implementing wide-ranging market reforms. In this article we discuss the scope for introducing reforms similar to the United Kingdom's 'quasi-market' model. We discuss the role of school league tables in providing signals and incentives in a quasi-market. Specifically, we compare a range of unadjusted and model-based league tables of primary school performance in Queensland's public education system. These comparisons indicate that model-based tables which account for socio-economic status and student intake quality vary significantly from the unadjusted tables

Do PGI integrated farms perform better? The case of the beef farms in Spain

European rural development policy is gaining in importance through one of its key instruments, the Protected Geographical Indications (PGI) system, which is designed to improve quality standards. Previous research has shown that PGI-certified beef farms tend to be more extensively managed operations that are better adapted to mountainous areas. This paper describes a comparative study of two production systems, one with PGI certification and one without, focusing on a number of economic variables. The results show a positive association between PGI production and profitability. In efficiency terms, non-certified farms show better pure technical efficiency scores, while PGI-certified holdings score higher on scale efficiency

Assessing the technical efficiency of maize production in northern ghana: the data envelopment analysis approach

Maize is a major source of food and cash for smallholder farmers. However, average yield in Ghana is less than a third of the achievable yield and thus the need to close this gap by improving the technical efficiency of farming households through employing the right combination of productive resources to achieve food sustainability. This study used the input-oriented data envelopment analysis to examine the technical efficiency of maize production in northern Ghana1 using cross-sectional data for the 2011/2012 cropping season. The mean technical efficiency was 77%, giving credence to the existence of production inefficiency. Technically, efficient farmers used an average of 395.80 kg of chemical fertilizer, 27.04 kg of seed, 4.04 l of weedicides and hired labour of three persons to produce a yield of 2.34 tons/ha of maize. Largely, maize production exhibited increasing returns to scale. Agricultural mechanization and level of formal education did not have positive effects on technical efficiency, whereas agricultural extension had a positive effect on technical efficiency. Technical efficiency in maize production could be improved through informal and non-formal educational platforms where farmers without formal education learn improved cultivation practices. The agricultural extension department should be strengthened to provide effective extension services to farmers to improve on their technical efficiency. Animal and other non-mechanized power sources are complementary technologies and as such should be allowed to co-exist in Ghanaian agriculture

Regulation’s influence on EU banking efficiency: an evaluation post crisis

This paper examines the impact of regulatory policies on banking market efficiency using a sample of 678 commercial banks from 21 European Union countries for the post-crisis year 2010, controlling for bank-specific and country-specific variables. Data on regulation, supervision and monitoring variables, and activity restrictions are from the most recent Bank Regulation and Supervision Survey database conducted by the World Bank, published 2012. Besides these we incorporate bank size, equity, market share, government ownership, and growth of Gross Domestic Product per capita, employing an Ordinary Least Squares method. Focus is on two alternative measures of banking market efficiency: net interest margin and overhead costs (operating expenses to assets). Elevated levels of these two ratios should indicate a low level of banking efficiency. The evidence suggests that the link between capital regulation and banking efficiency is not robust enough to control for other regulatory variables. Results confirm that activity restrictions have a negative and significant impact on banking efficiency. Policies encouraging official supervisory power do not enhance efficiency of the banking sector. The only approach positively and statistically significantly associated with efficiency is private monitoring. This leads to the suggestion that government regulation and supervision should be more focused on promoting transparency of information