Relation between the Efficiency of Public Forestry Firms and Subsidies: The Swiss Case
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Abstract
This study is an empirical analysis of the productive efficiency of public forestry firms in Switzerland. Because of the available database, the period under examination extends from 1998 to 2006, and is based on a balanced panel of 100 firms. We inquire whether public subsidies exert any significant impact on the efficiency of these firms. In order to determine the productive efficiency, a nonparametric method (DEA) is applied. Panel unit root tests and panel cointegration technique are employed to establish the long-run relationship between efficiency and selected variables. Results show that subsidies had a positive influence on technical efficiency.