Application of Luenberger index to estimating dynamics of total factor productivity in Lithuanian family farms

Tomas Balezentis, Alvydas Balezentis

Research output: Contribution to journalArticle

Abstract

Productivity and efficiency are the two interrelated factors influencing competiveness of a firm, a sector, or a state. It is therefore important to analyse the patterns of changes in productivity and efficiency in various sectors. This study employs the Luenberger productivity index for measuring the total factor productivity in Lithuanian family farms. Specifically, a sample of 200 farms that were operating in 2004–2009 was analyzed. The analyzed farms were classified into crop, livestock, and mixed ones by their output structure. The paper presents a survey on application of frontier techniques in research on the Lithuanian agricultural sector as well as frontier measures of efficiency. Special attention is paid to the Luenberger productivity index and decomposition thereof. The carried out analysis identified the sources of changes in productivity across different farming sectors. Compared to livestock farms both mixed farms and crop farms were characterised by higher efficiency and productivity gains caused by efficiency effect (catch–up) and lower gains from the overall technological change.
Original languageEnglish
Pages (from-to)70-79
JournalEconomics and management = Ekonomika ir vadyba
Issue number3
Publication statusPublished - 2012

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Keywords

  • Productivity
  • Efficiency
  • Luenberger index
  • Data envelopment analysis
  • Family farms

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