Findings from University of Foggia Advance Knowledge in Bio-Based and Applied Economics (Dealing with endogeneity in risk analysis within the stochastic frontier approach in agricultural economics: A scoping review): Economics – Bio-Based and Applied Economics

2023 MAY 22 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Research findings on bio-based and applied economics are discussed in a new report. According to news originating from the University of Foggia by NewsRx correspondents, research stated, “Literature on farm productivity and efficiency was reviewed using a scoping review methodology, focusing on studies that have included risk and risk management tools within the stochastic frontier analysis in agricultural economics.”

The news editors obtained a quote from the research from University of Foggia: “This study contributes to investigating the methods used to account for endogeneity by using a risk-accommodating stochastic frontier approach when analysing farmers’ performance. Despite the increasing methodologies proposed in the literature, only a few studies have treated endogeneity in farm risk-performance evaluations. According to our findings, it can be concluded that there is a literature gap regarding the adoption of a comprehensive approach capable of dealing with endogeneity when assessing farm performances. Endogeneity and risk issues need to be concurrently addressed to make strides in achieving economic and environmental sustainability.”

According to the news editors, the research concluded: “Neglecting endogeneity in these analyses may lead to biased estimates and thus inappropriate policy recommendations failing to boost the productivity and technical efficiency of farmers.”

For more information on this research see: Dealing with endogeneity in risk analysis within the stochastic frontier approach in agricultural economics: A scoping review. Bio-based and Applied Economics, 2023,11(4). (Bio-based and Applied Economics - http://www.fupress.net/index.php/bae). The publisher for Bio-based and Applied Economics is Firenze University Press.

A free version of this journal article is available at https://doi.org/10.36253/bae-13516.

Our news journalists report that additional information may be obtained by contacting Simone Russo, Department of Agriculture, Food, Natural Resources and Engineering (DAFNE), University of Foggia, 71122 Foggia. Additional authors for this research include Lerato Phali, Maurizio Prosperi.

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