Impact of Management Practices on Persistent and Residual Technical Efficiency – a Study of Swedish pig Farming”. Managerial and Decision Economics, 01 September 2016
Managerial capacity builds over the years and the accumulated knowledge/practice affect the outcome of the period that follows, with long-run/permanent effects on inefficiency. Therefore, predictions of the influence of managerial capacity on the time-varying inefficiency, regularly estimated as overall efficiency, may be biased. This study analyzed the influence of farm management practices on both the persistent and residual efficiency, and evaluated how conclusions drawn about the effect of management practices are assessed if overall efficiency, instead of permanent and residual efficiency, is evaluated. Farm-accounting data of Swedish pig producers and information from a survey related to managerial practices were used.