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Dynamic inefficiency and spatial spillovers in Dutch dairy farming
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Date
2020-02-05
Authors
Skevas, Ioannis
Lansink, Alfons Oude
Journal Title
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Publisher
John Wiley & Sons, Inc.
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Abstract
This article examines the presence of spatial spillovers in farms' dynamic technical inefficiency scores using Data Envelopment Analysis and a second-stage spatial truncated bootstrap regression model. Dynamic inefficiency is measured in terms of variable input contraction and gross investment expansion, while the second-stage model allows an individual's dynamic inefficiency to be influenced by both own and neighbours' characteristics. The empirical application focuses on the panel data of specialised Dutch dairy farms observed over the period 2009-2016 and for which exact geographical coordinates of latitude and longitude are available. The results confirm the existence of spatial spillovers in farmers' dynamic technical inefficiency levels. Although changes in neighbours' subsidies do not significantly influence an individual's inefficiency, an increase in neighbours' age reduces an individual's performance, while an increase in neighbours' levels of intensification improves an individual's dynamic efficiency.
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Keywords
Dynamic inefficiency , Spatial spillovers , Dutch dairy farms
Citation
Skevas, I. and Lansink, A. O. (2020) 'Dynamic inefficiency and spatial spillovers in Dutch dairy farming', Journal of Agricultural Economics. doi: 10.1111/1477-9552.12369
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© 2020, Agricultural Economics Society. Published by John Wiley & Sons, Inc. This is the peer reviewed version of the following article: Skevas, I. and Lansink, A. O. (2020) 'Dynamic inefficiency and spatial spillovers in Dutch dairy farming', Journal of Agricultural Economics, doi: 10.1111/1477-9552.12369, which has been published in final form at https://doi.org/10.1111/1477-9552.12369. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions.