Causes of Efficiency Change in Transition : Theory and Cross-Country Survey Evidence from Agriculture

This paper analyses the efficiency effects of the farm restructuring process in Central and Eastern Europe. We develop a theoretical model on how reforms, which are typically implemented in the process of the transition of a communist system to a market economy, would affect production efficiency in agriculture and we use a unique set of representative farm survey data to assess efficiency changes during transition. The theoretical model is used to simulate how the distribution of farm efficiencies would change during transition and efficiency changes are correlated with reforms in the countries