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A Bayesian Stochastic Frontier Estimation of Efficiencies for Strawberry and Tomato Farming:Effect of Environmentally Friendly Farming

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There are growing interests in environmental friendly cultivation for the matter of health concern. This study analyzes an economic efficiency of strawberry and tomato farming by considering the role of environmentally friendly cultivation. The Database of Rural Development Administration is used for strawberry and tomato farming households. We adopt a Bayesian stochastic frontier model to resolve a small sample property of the data. Empirical finding is that environmentally friendly cultivation improves the revenue of farming but the effect on net profit is not conclusive which calls for future research.

Abstract

There are growing interests in environmental friendly cultivation for the matter of health concern. This study analyzes an economic efficiency of strawberry and tomato farming by considering the role of environmentally friendly cultivation. The Database of Rural Development Administration is used for strawberry and tomato farming households. We adopt a Bayesian stochastic frontier model to resolve a small sample property of the data. Empirical finding is that environmentally friendly cultivation improves the revenue of farming but the effect on net profit is not conclusive which calls for future research.

참고문헌 (15)

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  10. Kim, G., "Evaluating the Performance of US Manufacturing and Service Operations in the Presence of IT: a Bayesian Stochastic Production Approach", International Journal of Production Research, 53(18), pp.5500~5523 (2015)
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