Italian Citrus Farms Operating Below Potential, Efficiency Models Reveal.
The article compares different methods to measure efficiency in Italian citrus farming. They used Data Envelopment Analysis (DEA) and Stochastic Frontier Analysis (SFA) to estimate technical and scale efficiency. The study found that most inefficiency in the farms comes from producing below the production frontier rather than operating at an inefficient scale. The technical efficiency estimates from SFA and DEA models were similar, but the scale efficiency estimate from SFA was higher than that from DEA analysis.