The Effect of CAP Subsidies on the Technical Efficiency of Polish Dairy Farms
DOI:
https://doi.org/10.24425/cejeme.2017.122210Keywords:
stochastic frontier analysis, dairy farms, Bayesian approach, panel dataAbstract
The main aim of this paper is to analyse the effect of Common Agricultural
Policy (CAP) subsidies on technical efficiency of Polish dairy farms. We have
distinguished several types of subsidies and provided an analysis to find out
which types are most likely to engender systematic differences in technical
efficiency. A balanced panel of microeconomic data on Polish dairy farms over an
eight-year period (between 2004 and 2011), taken from the Farm Accountancy
Data Network (FADN), is used. The translog production function is estimated
by employing the Bayesian approach. The empirical results show that the
elasticity of production with respect to livestock is the highest, whereas with
respect to feed is the lowest. The mean technical efficiency in the covered
period is 83%. The research reveals the negative effect of subsidies on technical
efficiency.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Jerzy Marzec, Andrzej Pisulewski
This work is licensed under a Creative Commons Attribution 4.0 International License.
