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Integrating spatial dependence into stochastic frontier analysis

Areal, F., Balcombe, K. and Tiffin, R. (2012) Integrating spatial dependence into stochastic frontier analysis. Australian Journal of Agricultural and Resource Economics, 56 (4). pp. 521-541. ISSN 1364-985X

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To link to this article DOI: 10.1111/j.1467-8489.2012.00597.x

Abstract/Summary

An approach to incorporate spatial dependence into stochastic frontier analysis is developed and applied to a sample of 215 dairy farms in England and Wales. A number of alternative specifications for the spatial weight matrix are used to analyse the effect of these on the estimation of spatial dependence. Estimation is conducted using a Bayesian approach and results indicate that spatial dependence is present when explaining technical inefficiency.

Item Type:Article
Refereed:Yes
Divisions:Faculty of Life Sciences > School of Agriculture, Policy and Development > Economic and Social Sciences Division > Farm Management Unit
Faculty of Life Sciences > School of Agriculture, Policy and Development > Economic and Social Sciences Division > Food Economics and Marketing (FEM)
ID Code:25515
Uncontrolled Keywords:Bayesian;spatial dependence;spatial weight matrix;technical efficiency
Publisher:Wiley

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