DescriptionThis dissertation proposes to examine the average cost efficiency of farms specialized in the production of wine grapes in the European Union (EU). Making use of public available information of Farm Accounting Data Network (FADN) of the European Union (EU), on average production costs of farms specialized in the production of wine grapes from several EU countries, in the 1999-2009 period, this dissertation used a two stage DEA approach to analyze the average cost efficiency of these countries in this production. The measures of technical inefficiency were derived from an input oriented directional distance function. First stage results show that the main sources of inefficiency in different countries are allocative inefficiency and pure technical inefficiency. Second stage results show that the proportion of paid labor on the total labor force increases the cost inefficiency, by increasing allocative inefficiency. Second stage results also show that time and the dummy crisis in 2009 have an ambiguous impact on the cost inefficiency, as these variables affect differently allocative inefficiency and pure technical inefficiency.
|1 Jul 2014
|Degree of Recognition