Modeling heterogeneous technologies in the presence of sample selection: The case of dairy farms and the adoption of agri‐environmental schemes in France
研究了法国奶牛场的技术效率，通过两步法纠正农业环境计划采纳的内生性，并区分集约与粗放技术类型，发现考虑生产异质性有助于优化补贴政策。
Abstract In this article, we assess farms’ technical efficiency accounting for their production heterogeneity and correcting for the potential endogeneity associated with the adoption of Common Agricultural Policy (CAP) agri‐environmental schemes (AESs). We estimate a first‐step selection probit model. In a second step we estimate the latent class stochastic frontier model (LCSFM) separately on each of the two sub‐samples, the AESs adopters and the AESs non‐adopters. We also account for heteroscedasticity in the estimation of inefficiency effects in the LCSFM within each sub‐sample. The application is to Farm Accountancy Data Network (FADN) dairy farms in France during 2002–2016. We identify one class with intensive technology and one class with extensive technology for each of the two sub‐samples. The investigation of inefficiency effects shows that modeling production heterogeneity could help better target the CAP, since the relationship between operational subsidies and farms' efficiency differs depending on whether or not production heterogeneity is accounted for.