Impact of public subsidies on persistent and transient technical efficiency: evidence from French mixed crop-livestock farms

This study contributes to the existing literature on the influence of public subsidies on farmers' technical efficiency by highlighting the importance of separating persistent and transient inefficiency. Using data from a sample of French mixed (crop-livestock) farms, and relying on recent deve...

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Bibliographic Details
Published inApplied economics Vol. 56; no. 55; pp. 7286 - 7301
Main Authors Minviel, Jean Joseph, Sipiläinen, Timo, Latruffe, Laure, Bravo-Ureta, Boris E.
Format Journal Article
LanguageEnglish
Published London Routledge 25.11.2024
Taylor & Francis Ltd
Taylor & Francis (Routledge)
Subjects
endogeneity
Environmental Sciences
Farmers
Farms
France
Livestock
mixed farms
Persistent and transient technical efficiency
public subsidies
Subsidies
Persistent and transient technical efficiency
public subsidies
endogeneity
France
mixed farms
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Summary:This study contributes to the existing literature on the influence of public subsidies on farmers' technical efficiency by highlighting the importance of separating persistent and transient inefficiency. Using data from a sample of French mixed (crop-livestock) farms, and relying on recent developments in stochastic frontier analysis, we find that public subsidies are positively associated with both persistent and transient technical inefficiency. The effect of public subsidies on persistent technical inefficiency suggests that they induce sluggish adjustments (restructuring) in farm management practices.
ISSN:0003-6846
1466-4283
DOI:10.1080/00036846.2023.2281289