scholarly journals Long-Run Effects in Large Heterogenous Panel Data Models with Cross-Sectionally Correlated Errors

2015 ◽  
Vol 2015 (223) ◽  
Author(s):  
Alexander Chudik ◽  
◽  
Kamiar Mohaddes ◽  
M. Hashem Pesaran ◽  
Mehdi Raissi ◽  
...  
Keyword(s):  
Panel Data ◽  
Data Models ◽  
Panel Data Models ◽  
Correlated Errors ◽  
Long Run

scholarly journals Heterogeneity, transient and persistent technical efficiency of Polish crop farms

2019 ◽  
Vol 17 (1) ◽  
pp. e0106
Author(s):  
Andrzej Pisulewski ◽  
Jerzy Marzec
Keyword(s):  
Panel Data ◽  
Technical Efficiency ◽  
New Technologies ◽  
Unobserved Heterogeneity ◽  
Stochastic Frontier ◽  
Data Models ◽  
Panel Data Models ◽  
Random Effects Model ◽  
Managerial Skills ◽  
Long Run

Accounting for heterogeneity in the measurement of farm efficiency is crucial to avoid biases related to climate and soil quality diversity in a given area. Therefore, this paper investigates the level of technical efficiency (TE) of Polish crop farms based on several stochastic frontier panel data models with different approaches to the measurement of unobserved heterogeneity, short- and long- run inefficiency. In our study, we show that ignoring farm heterogeneity can lead to underestimation of the level of TE in conventional stochastic frontier panel data models. Moreover, we have found empirically that not accounting for heterogeneity in the Generalized True Random Effects model may lead to incorrect estimates of persistent TE. The obtained results for Polish crop farms indicate that the level of transient TE (0.81) is lower than the level of persistent TE (0.88). This result suggests that Polish farms may have, for example, problems with adopting new technologies and poor managerial skills.

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