Technical efficiency for a sample of Chilean wine grape producers: A stochastic production frontier analysis

Chile has become an increasingly important player in international wine markets. Concurrent with the expansion of Chilean wine output and exports, there has been an increase in production in several other "New World" countries including Argentina, Australia, New Zealand and South Africa. T...

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Autores principales: Moreira,Victor H, Troncoso,Javier L, Bravo-Ureta,Boris E
Lenguaje:English
Publicado: Pontificia Universidad Católica de Chile. Facultad de Agronomía e Ingeniería Forestal 2011
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Acceso en línea:http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-16202011000300001
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spelling oai:scielo:S0718-162020110003000012012-01-23Technical efficiency for a sample of Chilean wine grape producers: A stochastic production frontier analysisMoreira,Victor HTroncoso,Javier LBravo-Ureta,Boris E Chile stochastic production frontiers technical efficiency wine grapes Chile has become an increasingly important player in international wine markets. Concurrent with the expansion of Chilean wine output and exports, there has been an increase in production in several other "New World" countries including Argentina, Australia, New Zealand and South Africa. The overall growth in wine supplies has increased competition to capture market share, which highlights the importance of productivity gains among wine and grape producers. The purpose of this paper is to estimate and analyze the technical efficiency (TE) component of productivity for a sample of wine grape producers in Chile. The data includes 38 farms with specific input-output information for individual blocks yielding a total of 263 observations. We use a Cobb-Douglas model to estimate a stochastic production frontier (SPF) and to obtain TE scores both at the individual block and at the farm level. The results suggest that the average farm level TE is 77.2%, while the block level TE ranges from 23.4 to 95.0%. The value of the function coefficient is 1.021, which suggests nearly constant returns to size.info:eu-repo/semantics/openAccessPontificia Universidad Católica de Chile. Facultad de Agronomía e Ingeniería ForestalCiencia e investigación agraria v.38 n.3 20112011-12-01text/htmlhttp://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-16202011000300001en10.4067/S0718-16202011000300001
institution Scielo Chile
collection Scielo Chile
language English
topic Chile
stochastic production frontiers
technical efficiency
wine grapes
spellingShingle Chile
stochastic production frontiers
technical efficiency
wine grapes
Moreira,Victor H
Troncoso,Javier L
Bravo-Ureta,Boris E
Technical efficiency for a sample of Chilean wine grape producers: A stochastic production frontier analysis
description Chile has become an increasingly important player in international wine markets. Concurrent with the expansion of Chilean wine output and exports, there has been an increase in production in several other "New World" countries including Argentina, Australia, New Zealand and South Africa. The overall growth in wine supplies has increased competition to capture market share, which highlights the importance of productivity gains among wine and grape producers. The purpose of this paper is to estimate and analyze the technical efficiency (TE) component of productivity for a sample of wine grape producers in Chile. The data includes 38 farms with specific input-output information for individual blocks yielding a total of 263 observations. We use a Cobb-Douglas model to estimate a stochastic production frontier (SPF) and to obtain TE scores both at the individual block and at the farm level. The results suggest that the average farm level TE is 77.2%, while the block level TE ranges from 23.4 to 95.0%. The value of the function coefficient is 1.021, which suggests nearly constant returns to size.
author Moreira,Victor H
Troncoso,Javier L
Bravo-Ureta,Boris E
author_facet Moreira,Victor H
Troncoso,Javier L
Bravo-Ureta,Boris E
author_sort Moreira,Victor H
title Technical efficiency for a sample of Chilean wine grape producers: A stochastic production frontier analysis
title_short Technical efficiency for a sample of Chilean wine grape producers: A stochastic production frontier analysis
title_full Technical efficiency for a sample of Chilean wine grape producers: A stochastic production frontier analysis
title_fullStr Technical efficiency for a sample of Chilean wine grape producers: A stochastic production frontier analysis
title_full_unstemmed Technical efficiency for a sample of Chilean wine grape producers: A stochastic production frontier analysis
title_sort technical efficiency for a sample of chilean wine grape producers: a stochastic production frontier analysis
publisher Pontificia Universidad Católica de Chile. Facultad de Agronomía e Ingeniería Forestal
publishDate 2011
url http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-16202011000300001
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AT troncosojavierl technicalefficiencyforasampleofchileanwinegrapeproducersastochasticproductionfrontieranalysis
AT bravouretaborise technicalefficiencyforasampleofchileanwinegrapeproducersastochasticproductionfrontieranalysis
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