The aim of this article is to analyse the technical efficiency of Hungarian crop farms between 2001 and 2009 using panel data. We employ both standard stochastic frontier analysis and latent class model (LCM) to estimate technical efficiency. Our results suggest that technological heterogeneity...

Effective agricultural policymaking requires the accurate estimation of the production technology and efficiency of farms. However, several methodological issues should be considered when modelling production and estimating technical efficiency. In this paper, we focus on two of...