WP 18 | 11 Measuring the economic efficiency of Italian agricultural enterprises

This paper aims to measure the technical efficiency of agricultural enterprises in Italy during the period 2003 – 2007 by applying a stochastic frontier analysis to panel data. The developed two-sectored model distinguishes between agricultural production function and non-agricultural production function. The variables included in the first production function are related directly to the final product and are utilized during the production process. The non-agricultural production function includes two categories of variables: the first accounts for the general characteristics of the agricultural enterprises, while the second attempts to describe the opportunities and restrictions of the institutional framework.