Uncertainty and technical efficiency in Finnish agriculture: A state-contingent approach

Nauges, Celine, O'Donnell, Christopher J. and Quiggin, John (2011) Uncertainty and technical efficiency in Finnish agriculture: A state-contingent approach. European Review of Agricultural Economics, 38 4: 449-467. doi:10.1093/erae/jbr014


Author Nauges, Celine
O'Donnell, Christopher J.
Quiggin, John
Title Uncertainty and technical efficiency in Finnish agriculture: A state-contingent approach
Journal name European Review of Agricultural Economics   Check publisher's open access policy
ISSN 0165-1587
1464-3618
Publication date 2011-10-01
Sub-type Article (original research)
DOI 10.1093/erae/jbr014
Volume 38
Issue 4
Start page 449
End page 467
Total pages 19
Place of publication Oxford, United Kingdon
Publisher Oxford University Press
Language eng
Abstract In this article, we present one of the first real-world empirical applications of state-contingent production theory. Our state-contingent behavioural model allows us to analyse production under both inefficiency and uncertainty without regard to the nature of producer risk preferences. Using farm data for Finland, we estimate a flexible production model that permits substitutability between state-contingent outputs. We test empirically and reject an assumption that has been implicit in almost all efficiency studies conducted in the last three decades, namely that the production technology is output-cubical, i.e. that outputs are not substitutable between states of nature.
Keyword State-contingent production theory
Uncertainty
Inefficiency
Finland
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: Official 2012 Collection
School of Economics Publications
 
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Created: Wed, 05 Oct 2011, 01:17:00 EST by Celine Nauges on behalf of School of Economics