Latent Class Modelling for a Robust Assessment of Productivity: Application to French Grazing Livestock Farms

• Main Authors: Dakpo, K.H (Author), Desjeux, Y. (Author), Jeanneaux, P. (Author), Latruffe, L. (Author)
• Format: Article
• Language: English
• Published: John Wiley and Sons Inc 2021
• Subjects: Efficiency; efficiency measurement; Färe-Primont; France; grazing; grazing livestock farms; latent class stochastic frontier; livestock farming; multivariate analysis; productivity
• Online Access: View Fulltext in Publisher
• ISBN: 0021857X (ISSN)
• DOI: 10.1111/1477-9552.12422

Our objective is to extend the latent class stochastic frontier (LCSFM) model to compute productivity change, using the robust transitive productivity Färe-Primont index. The application is to three types of grazing livestock farms in France over the period 2002–2016. The LCSFM identified two classes of farms, intensive farms and extensive farms. Results indicate that productivity change and its components show only small differences between the LCSFM and the pooled model that does not account for heterogeneity. Differences across classes exist, but depend on farm type. © 2021 The Authors. Journal of Agricultural Economics published by John Wiley & Sons Ltd on behalf of Agricultural Economics Society