The effect of subsidies on the performance of farms has received a great deal of attention in the literature, although results are inconclusive. Furthermore, much ofthe related literature examines the effect of subsidies only on technical efficiency (TE). We examine the effect of different types of subsidies on the different components of total factor productivity (TFP) in Slovenian agriculture over the period2006-2013. We first estimate a Random Parameter Stochastic production frontier model. Then, based on the estimates of this model, we calculate and decompose the TFP index into TE, scale efficiency and technological change. Third, we apply combined difference-in-difference and a matching estimator to examine the effect of investment, less favoured area (LFA) and agri-environmental (AE) subsidies on the different components of TFP. In our case, these subsidies are found to have no significant effect on either TFP or on its components
COBISS.SI-ID: 13636099
This paper studies the validity of Gibrat's law for the growth of Slovenian farms between 2007 and 2015 using Farm Accountancy Data Network datasets. Cross-sectional dependence test and four different groups of panel unit root tests are applied to study the relationship between farm size and the farm size growth. It revealed evidence of cross-sectional dependence in farm sizes. Both input (land and labour) and output (economic) sizes of variables as proxy for the measures of farm size are applied. The results suggest that Gibrat's law is valid for Slovenian farms independently from the measures of farm size and types of panel unit root tests. Slovenian smaller farms are not growing faster than larger ones and thus all farm sizes tend to contribute to an increase in average farm size in generally relatively small- to medium-size farm structures.
COBISS.SI-ID: 1541941956
This article describes an investigation of the relationship between farm size and the growth of farms. Theories about the associationbetween farm size and the growth of farms give mixed results bycountry and over time. The former relationship is tested by asses-sing the validity of Gibrat's Law for Hungarian and Slovenian farms in the period 2007-2015. The use of a sample of farms from Farm Accountancy Data Network datasets makes it necessary to avoid biases due to heterogeneous structures across farming systems.Thus, we use quantile regressions to control for farm-size-related heterogeneity in the samples. Results suggest rejection of the validity of Gibrat's Law for farms in Hungary and to a lesser extent for Slovenian farms when the growth of farms is measured by growth of output per farm (where smaller farms grew faster than the largest farms), but not in the case of an increase in farm inputs (i.e. land and labour per farm). We provide evidence for Hungarian farms that smaller, mostly individual farms grew faster than larger, mostly corporate farms throughout the period of analysis.
COBISS.SI-ID: 1541979076