scholarly journals On the estimation of technical inefficiency in the stochastic frontier production function model

1982 ◽  
Vol 19 (2-3) ◽  
pp. 233-238 ◽  
Author(s):  
James Jondrow ◽  
C.A. Knox Lovell ◽  
Ivan S. Materov ◽  
Peter Schmidt
2020 ◽  
Vol 51 (6) ◽  
pp. 1634-1643
Author(s):  
Al-Hachami & et al.

This study aimed to estimate the stochastic frontier production function and the inefficiency function and technical efficiency of potato production by using cross-section data collected from 173 potato farms that were randomly selected in Baghdad province/ Yusifiyah for production season 2016. The results showed that 90.6% of inefficiency in production was due to technical inefficiency. Also, there was a significant relationship between the variables of inefficiency function and the inefficiency of farms. The values of the parameters of the stochastic frontier production function were positive and significant for both human work hours and the amount of seeds. However, the parameter of DAP fertilizer was negative and significant. The estimation of the technical inefficiency function showed that its parameters were significant for both the local seed provider and the agricultural season (fall), while the parameters experience in growing potatoes and the number of irrigations were significant and their impact was negative on the inefficiency. The results also showed that the technical efficiency of the study sample (50%) on average. The researchers recommended the necessity of providing imported seed tubers for the increased productivity in dunum to achieve technical efficiency.


1993 ◽  
Vol 32 (3) ◽  
pp. 233-268 ◽  
Author(s):  
George E. Batiese ◽  
Sohail J. Malik ◽  
Sumiter Broca

Two models of technical inefficiency with a stochastic production frontier are considered in this paper. In the frrst model, it is assumed that the frontier itself does not vary with time, while in the second, the frontier is allowed to move. These models are applied to four years of panel data on wheat farmers in four districts of Pakistan: Faisalabad and Attock in the Punjab, Badin in Sindh, and Dir in the NWFP. Using essentially the same stochastic frontier production function in each of the four districts involved, different stochastic specifications for the inefficiency effects are obtained for the different districts. Technical efficiencies of production of the individual farmers are predicted in each year in which they are observed. Varying patterns of technical inefficiency are observed. The null hypothesis (of no technical inefficiency) cannot be rejected in only one district. In the other districts, while inefficiencies appear to be present in all of them, they are declining at a fairly rapid pace in one. The results highlight the importance of analysis at a disaggregated level because it is clear that both the rate of technical change and relative efficiencies vary across regions and explicit cognisance must be taken of this both in research and policy formulation.


2013 ◽  
Vol 1 (4) ◽  
pp. 470-475
Author(s):  
REKWOT G.Z ◽  
DAMISA M A ◽  
YUSUF O

This study was undertaken to principally determine the technical efficiency differential of groundnut production by adopters and non-adopters of Institute for Agriculture (IAR) groundnut varieties in Jigawa state, Nigeria.Interview schedule was used to collect data from a sample of 227 respondents who were selected randomly from the four agricultural zones in the study area. The analytical tools employed in data analysis include descriptive statistics and stochastic frontier production function. The result of the Maximum Likelihood Estimation of the stochastic frontier production function revealed that the maximum, minimum and mean efficiencies of farmers who adopted IAR groundnut varieties were 91%, 18% and 70% respectively while in the case of farmers who did not adopt, the maximum, minimum and mean efficiencies were 88%, 18% and 63%. This implies that the farmers who adopted IAR groundnut varieties are more technically efficient than farmers who did not adopt IAR groundnut varieties. Therefore, adopting of IAR groundnut varieties by farmers can contribute in enhancing their technical efficiency.The sources of technical inefficiency of adopters of IAR groundnut varieties were age (P<0.01), family size (P<0.01), education (P<0.01), extension (P<0.01) and credit(P<0.05). The result of the inefficiency model of the non-adopters of IAR groundnut varieties revealed that the major factorsinfluencing the technical inefficiency were family size (P<0.01), education (P<0.01), farming experience (P<0.05) and extension contact (P<0.05). Based on the findings of the study, Based on the findings of the study, it is recommended that Government should fast track seed multiplication and distribution through effective extension service delivery to farmers so as to intensify and sustain the adoption of improved groundnut varieties towards enhancing the technical efficiency of groundnut farming households.


Author(s):  
Nurhayatin Nufus

This research  aims  to analyses  factors  influence  on production  and  resources  allocation  of soybeans  by farmer  at  West Lombok.  Production  function  was estimated  from survey data and technical  efficiency  was used to indicate  farm management  level  through maximum  likelihood,  which  was transformed  into frontier stochastic  production  function.  The land  size,  fertilizer  (urea and  TSP), labor  and pesticide  influence  the production  of soybean  at site.  The technical efficciency  level of Soybean fann was 95,6 percent   The  usage of TSP and pesticide reached allocative efficiency while urea and seeds were al/ocative efficiency yet Key words:  technical  effICiency, allocative  effICiency, and stochastic  frontier  production  function.


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