Limited budget for the purchase of variable inputs might adversely affect producer's input use decisions and might result in a non-optimal input usage. If expenditure constrains are present and binding, unconstrained profit-maximization is not valid for modelling producers' input use decisions....

We present an approach that pursues an adequate representation of product transformation possibilities for a technology generating, in addition to marketed (good) products, some environmentally detrimental non-marketed byproducts (bad outputs). As the shadow price of a non-marketed output...

This paper analyzes the evolution of Swiss farm productivity during the implementation of environmental policy reforms, when subsidization of farms became dependent on compliance with environmental regulations. We employ a production model formulation with technology parameters defined as the...

This paper analyzes the evolution of Swiss farm productivity during the implementation of environmental policy reforms. We employ a production model formulation with technology parameters defined as the functions of subsidies, as well as individual farm characteristics. Our estimates for two...

This paper analyses regional productivity and technical efficiency development in Russian agriculture. We formulate a regional stochastic frontier model by assuming that producers maximise return to the outlay. We control for regional heterogeneity and endogeneity/simultaneity in input...

We use the indirect production function approach in the stochastic frontier framework to estimate separately the output losses due to the presence of a budget constraint and technical inefficiency. We develop a methodology for estimating the severity and testing the significance of the...

Risk plays an important role in agricultural decision-making, particularly in those regions that are remarkably exposed to natural hazards and underdeveloped input and output markets. This is especially true for crop production in CIS countries where many farms have to deal with low liquidity...

This paper aims to contribute to a better understanding of possible causes of considerable production variability that characterised Russian agriculture during the last decade. The study investigates production risk and technical inefficiency as two sources that influence production variability....

This article analyses determinants of the investment behaviour of Russian farms during the period of economic stabilisation after the 1998 financial crisis. We argue that the performance and investment activity of Russian farms are significantly affected not only by the macroeconomic and...

An ex post measure of risk reduction is commonly used in the literature to predict the potential reduction of farmers’ yield risk due to weather-based index insurance and area-yield crop insurance. In this paper, we evaluate the predictive power of the ex post risk reduction for different...