The study aims at measuring and analyzing the productive efficiency of the Lithuanian family farms and identifying the related policy implications. The following tasks are, therefore, set: (i) to present the research methodology for efficiency analysis, (ii) to estimate the technical efficiency by the means of the non-parametric techniques, (iii) to estimate the technical efficiency by the means of the parametric techniques, and (iv) to quantify the impact of the efficiency effects.
The study estimated the technical, allocative, and cost efficiency of the Lithuanian family farms. Furthermore, the stochastic frontier analysis was employed to analyse the dynamics of the total factor productivity and output elasticities. Noteworthy, these measures have not been analysed in the Lithuanian scientific literature ever before.
The study is therefore structured as follows. The first two sections deal with the general preliminaries to efficiency analysis. Section 1 presents the definitions and measures of the productive efficiency. Section 2 presents the main mathematical models for implementation of efficiency measures, namely data envelopment analysis and stochastic frontier analysis. The remaining two sections deal with agricultural efficiency research. Specifically, Section 3 presents results of the scientometric analysis and a literature review on frontier benchmarking in agriculture. Section 4 then presents some specific techniques and results of the empirical analysis of the efficiency patterns in the Lithuanian agricultural sector.
Keywords: efficiency, total factor productivity, data envelopment analysis, stochastic frontier analysis, family farms, direct payments.
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Baležentis, T.; Kriščiukaitienė, I. 2013. Efficiency in the Lithuanian Agricultural Sector: Applications of the Non-Parametric and Parametric Measures : Scientific Study. Vilnius: Lithuanian Institute of Agrarian Economics. - 68 p. (online) ISBN 978-9955-481-42-3.
