An input-specific analysis of the cost efficiency on Lithuanian family farms

The productive technology can be analysed in terms of the technical and economic (cost) efficiency. This paper analyses the performance of the Lithuanian family farms in terms of the economic (cost) efficiency. Specifically, the economic efficiency is decomposed across specific inputs in order to identify the major sources of inefficiency. The livestock farms exhibited the highest overall cost efficiency (65%) and input-specific cost efficiencies. The mixed farms were peculiar with a somehow lower level of the cost efficiency (52%). Finally, the crop farms featured the lowest cost efficiency (42%). The dynamic analysis of the input-specific cost efficiencies was presented in the paper.