Original scientific paper
https://doi.org/10.1080/1331677X.2022.2120039
Dynamics in the economic performance of farms: a quintipartite decomposition of the profitability change at the aggregate level
Vaida Sapolaite
Ioanna Reziti
Tomas Balezentis
Abstract
This paper presents a framework for decomposition of changes in
farm profitability with regards to structural, activity and intensity
(efficiency) effects. The Index Decomposition Analysis (IDA) is
adapted for isolation of the effects of profit margin, asset turnover,
leverage, capital intensity and structure. The proposed approach
complements the regression-based analysis as the IDA allows combining
data from different levels of aggregation and taking the
structural change into account. The Shapley value is applied to
facilitate the decomposition. The proposed model is applied to the
case of Greek farms for 2010–2017. Besides from the theoretical
contribution to analysis of the farm profitability, this paper is first
to evaluate the financial performance of Greek farms.
Keywords
Profitability; index decomposition analysis; Shapley value; Greece
Hrčak ID:
306466
URI
Publication date:
31.3.2023.
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