Analysis of the Relative Efficiency of Lithuanian Family Farms under Uncertainty: Alpha-Quantile Frontiers

2014-01-06
Analysis of the Relative Efficiency of Lithuanian Family Farms under Uncertainty: Alpha-Quantile Frontiers

Esti mation of the farming efficiency constitutes an important issue related to the policy analysis. However, the efficiency of Lithuanian family farms has not been analysed by the means of the order-alpha frontiers yet. The latter technique enables to estimate the level of efficiency along with sensitivity analysis. This study attempted to analyse the Lithuanian family farm efficiency as well as the associated uncertainties. The probabilistic analysis of the efficiency of Lithuanian family farms suggested that the livestock farming was the most efficient farming type. Even though livestock farming appeared to be a relatively efficient farming type, the number of livestock is decrea sing Lithuania. Such changes might be fuelled by both economic and social developm ents in Lithuania. Therefore, the appropriate measures aimed at fostering livestock farming in Lithuania would contribute to increase in agricultural efficiency and productivity.

Keywords: efficiency, family farms, order-alpha frontier, activity analysis.

JEL Codes: C14, C44, D24, Q12.

Baležentis, T.; Melnikienė, R.; Asmild, M.; Hougaard, J. L.; Galnaitytė, A. 2013. Analysis of the relative efficiency of Lithuanian family farms under uncertainty: alpha-quantile frontiers, Management theory and studies for rural business and infrastructure development = Vadybos mokslas ir studijos - kaimo verslų ir jų infrastruktūros plėtrai 35(4): 480-490. (ISSN 1822-6760 (print) / ISSN 2345-0355 (online)) [EBSCO host: Business source complete nuo 2006 (EBSCO sąrašas) Central & Eastern European Academic Source nuo 2006 (EBSCO sąrašas); Ulrich’s; IndexCopernicus].