Real money balances and production efficiency: a panel-data stochastic production frontier study

This paper explores the framework and development of stochastic frontier Approach (SFA). The original idea of the SFA and its theoretical framework is discussed to provide a basic foundation of the approach. The development of SFA with more flexible distribution assumptions follows the pioneering model. Experts alsodevelop the time-variant technical efficiency models, in order to allow variation between times for a production unit. The most recent development is the panel data SFA, which includes the two-stage and the one-stage procedures.

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Weather Volatility and Production Efficiency

Sustainability ◽

10.3390/su11246970 ◽

2019 ◽

Vol 11 (24) ◽

pp. 6970

Author(s):

Denitsa Angelova ◽

Jan Käbel

Keyword(s):

Production Efficiency ◽

Stochastic Production Frontier ◽

Production Frontier ◽

Agricultural Output ◽

Average Temperature ◽

Temperature And Precipitation ◽

Average Precipitation ◽

Stochastic Production ◽

Precipitation And Temperature ◽

European Agriculture

We formulate a stochastic production frontier model to estimate the production efficiency scores while correcting for technical progress and weather effects in the form of temperature and precipitation levels and volatility. We econometrically estimate a model for European agriculture. Our results indicate that average temperature, unlike average precipitation levels, significantly influences aggregate agricultural output. We estimate that a marginal increase in temperature would decrease aggregate European agricultural output by about 1.6% percent. Further estimation results indicate a slight increase in output associated with marginal increases of precipitation and temperature volatilities.

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Farm-heterogeneity and persistent and transient productive efficiencies in Ethiopia’s smallholder cereal farming

IZA Journal of Development and Migration ◽

10.2478/izajodm-2020-0018 ◽

2020 ◽

Vol 11 (1) ◽

Author(s):

Oumer Berisso ◽

Almas Heshmati

Keyword(s):

Panel Data ◽

Time Varying ◽

Stochastic Production Frontier ◽

Empirical Comparison ◽

Production Frontier ◽

Ecological Zones ◽

Stochastic Production ◽

The Individual ◽

Time Invariant ◽

Agro Ecological Zones

AbstractThis paper does an empirical comparison of time-invariant and time-varying technical inefficiency measures obtained from an econometric estimation of different panel data stochastic production frontier models. It estimates four panel data specifications of frontier models widely used in empirical applications using a panel dataset from the Ethiopian cereal farming sector. The empirical results show that estimates of both the magnitude and the individual farms’ rankings of persistent and transient productive efficiencies differ considerably across models and based on their agro-ecological zones location. The results further show that the cereal growing farms experience much more transient inefficiency as compared to persistent inefficiency.

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Economic Efficiency of Wheat Producers: The Case of Debra Libanos District, Oromia, Ethiopia

Turkish Journal of Agriculture - Food Science and Technology ◽

10.24925/turjaf.v9i6.953-960.4244 ◽

2021 ◽

Vol 9 (6) ◽

pp. 953-960

Author(s):

Kebebew Hundie Bezu ◽

Badassa Wolteji Chala ◽

Milkessa Wakjira Itticha

Keyword(s):

Production Efficiency ◽

Sampling Technique ◽

Stochastic Production Frontier ◽

Production Frontier ◽

Yield Gap ◽

Wheat Production ◽

Stochastic Production ◽

Two Stages ◽

Improved Technology ◽

Tobit Estimator

Ethiopia has enormous potential for wheat production, yet it remains a net wheat importer. This paper aims to examine the efficiency of wheat production in Debra Libanos district, Ethiopia. Two stages sampling technique was used to randomly select 150 farmers for the study. A stochastic production frontier and two-limit Tobit estimator was utilized in the study. The study reveals that technical (78.5 %,), allocative (85.6%), and economic (66.7%) efficiencies. The yield gap was 5.13 quintal/ hectare showing a room to increase efficiencies. The study identified the determinants of wheat production efficiency in the area. Hence, to improve wheat production efficiencies strengthen extension services, improved technology utilization, and proper land ploughing. Besides, natural resource conservations that improve soil fertility should be the focus of the policymakers.

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Does a Diversified Crop Portfolio Make Farmers More Efficient? A Stochastic Production Frontier Analysis of Farm-level Data from Assam, India

International Journal of Rural Management ◽

10.1177/0973005221997580 ◽

2021 ◽

pp. 097300522199758

Author(s):

Raju Mandal ◽

Shrabanti Maity

Keyword(s):

Positive Impact ◽

Northeast India ◽

Government Support ◽

Stochastic Production Frontier ◽

Production Frontier ◽

Frontier Analysis ◽

Farm Level ◽

Agriculture Sector ◽

Level Data ◽

Stochastic Production

The agriculture sector in India is beset with twin limitations of shrinking cultivable area and absence of major technological breakthroughs in the recent past. In such a situation, a judicious management of the farm in the form of adjustment in a crop portfolio can be quite useful to maximise output and minimise wastage of resources. This article seeks to examine whether a diversified crop portfolio makes the farmers more efficient using farm-level survey data collected from geographically diverse areas of Assam, a state in northeast India. The results of a stochastic production frontier analysis show that adoption of a diversified crop portfolio across crops and seasons makes the farmers more efficient in cultivation by helping them reduce weather-induced damages to crops and reap better returns from farming. This efficiency-enhancing effect of crop diversification is found to be heterogeneous among the regions. However, too much diversification reduces the efficiency of farmers. The results have important implications for Assam where floods cause extensive damage to crops every year. Moreover, access to extension services and government support are found to make the farmers more efficient. On the other hand, fixed-rent form of tenancy reduces efficiency of the farmers while household size has a positive impact on the same.

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The Economics and Productivity of Organic versus Conventional U.S. Dairy Farms

Journal of Agricultural and Applied Economics ◽

10.1017/aae.2020.34 ◽

2021 ◽

pp. 1-19

Author(s):

Richard F. Nehring ◽

Jeffrey Gillespie ◽

Catherine Greene ◽

Jonathan Law

Keyword(s):

United States ◽

Returns To Scale ◽

Dairy Farms ◽

Stochastic Production Frontier ◽

Production Frontier ◽

Return On Assets ◽

Input Distance Function ◽

Technological Adoption ◽

Stochastic Production ◽

Certified Organic

Abstract United States certified organic and conventional dairy farms are compared on the basis of economic, financial, and technological measures using dairy data from the 2016 USDA Agricultural Resource Management Survey. A stochastic production frontier model using an input distance function framework is estimated for U.S. dairy farms to examine technical efficiency and returns to scale (RTS) of farms of both systems and by multiple size categories. Financial and economic measures such as net return on assets and input costs, as well as technological adoption measures are compared by system and size. For both systems, size is the major determinant of competitiveness based on selected measures of productivity and RTS.

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