The author systematically examines one of the important issues of information — establishing the market price. He introduces the concept of «search» — where a buyer wanting to get a better price, is forced to question sellers. The article deals with various aspects of finding the necessary information.

Economics of Information

Economics and Information Theory

In this paper recent developments in the estimation of frontier functions and the measurement of efficiency are surveyed, and the potential applicability of these methods in agricultural economics is discussed. Frontier production, cost and profit functions are discussed, along with the construction of technical, allocative, scale and overall efficiency measures relative to these estimated frontiers. The two primary methods of frontier estimation, econometric and linear programming, are compared. A survey of recent applications of frontier methods in agriculture is also provided. (This abstract was borrowed from another version of this item.)

Recent Developments in Frontier Modelling and Efficiency Measurement

Estimating the soil erosion cover-management factor at the European scale

A meta-regression analysis including 167 farm level technical efficiency (TE) studies of developing and developed countries was undertaken. The econometric results suggest that stochastic frontier models generate lower mean TE (MTE) estimates than non-parametric deterministic models, while parametric deterministic frontier models yield lower estimates than the stochastic approach. The primal approach is the most common technological representation. In addition, frontier models based on cross-sectional data produce lower estimates than those based on panel data whereas the relationship between functional form and MTE is inconclusive. On average, studies for animal production show a higher MTE than crop farming. The results also suggest that the studies for countries in Western Europe and Oceania present, on average, the highest levels of MTE among all regions after accounting for various methodological features. In contrast, studies for Eastern European countries exhibit the lowest estimate followed by those from Asian, African, Latin American, and North American countries. Additional analysis reveals that MTEs are positively and significantly related to the average income of the countries in the data set but this pattern is broken by the upper middle income group which displays the lowest MTE.

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Technical efficiency in farming: a meta-regression analysis

Technical efficiency of alternative farming systems: the case of Greek organic and conventional olive-growing farms

This study offers an empirical framework for analyzing farmers' joint decisions to adopt organic farming practices and to seek technical (i.e., farming) information from various sources. To that end, a trivariate ordered probit model is specified and implemented in the case of organic land conversion in Crete, Greece. Findings suggest that the decisions of information acquisition and organic land conversion are indeed correlated, and different farming information sources play a complementary role. Structural policies improving the farmer's allocative ability are found to play an important role in encouraging organic farming adoption.

Information Acquisition and Adoption of Organic Farming Practices

Using recent advances in the stochastic production frontier framework, this paper presents an empirical analysis of technical, allocative and economic efficiency of a sample of organic and conventional cotton farms located in Greece. The results suggest that both farm types in the sample examined are technically, allocatively and economically inefficient. Farmer's age and education and farm size are important factors in explaining differentials in efficiency estimates. In comparative terms, organic farms exhibit lower efficiency scores vis-a-vis their conventional counterparts in terms of technical and economic efficiency; regarding allocative efficiency both farm types are almost equally inefficient. Low efficiency scores in both types of farming may be attributed to the respective intervention policies of the last 20 years.

/pdf/economic-efficiency-in-organic-farming-evidence-from-cotton-324tvuvicv.pdf

Economic efficiency in organic farming: evidence from cotton farms in viotia, greece

Estimates the output‐oriented and input‐specific technical efficiency in two samples of Greek, durum wheat farms – organic and conventional ones – using Kalirajan and Obwona’s stochastic varying coefficient regression model Findings indicate that the organic wheat farms examined are relatively more efficient Reasons may include lower profit margins and restrictions on inputs permitted, which may force organic farmers to be more cautious with input use However, technical efficiency scores are still relatively low for both types of wheat farming Therefore, considerable scope for cost reducing and farm income improvement may exist in both farming modes This realization could prove crucial for the long‐run viability and the future course of organic wheat farming

Christos J. Pantzios

Papers

Technical efficiency of alternative farming systems: the case of Greek organic and conventional olive-growing farms

Information Acquisition and Adoption of Organic Farming Practices

Economic efficiency in organic farming: evidence from cotton farms in viotia, greece

Measuring multiple and single factor technical efficiency in organic farming: The case of Greek wheat farms

The impacts of regulated notions of quality on farm efficiency: A DEA application