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Integrating spatial dependence into stochastic frontier analysis

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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 item 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:Life Sciences > School of Agriculture, Policy and Development > Farm Management Unit
Life Sciences > School of Agriculture, Policy and Development > Department of Agri-Food Economics & Marketing
ID Code:25515
Uncontrolled Keywords:Bayesian;spatial dependence;spatial weight matrix;technical efficiency
Publisher:Wiley
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