Estimation of Technical and Allocative Efficiency in Profit Frontier Models Using System Models with Cross-Sectional Data: A Primal System Approach

2015 ◽  
pp. 230-238
Author(s):  
Subal C. Kumbhakar ◽  
Hung-Jen Wang ◽  
Alan P. Horncastle
Keyword(s):  
System Approach ◽  
Allocative Efficiency ◽  
Cross Sectional ◽  
System Models ◽  
Primal System ◽  
Technical And Allocative Efficiency

scholarly journals Impact of Irrigation Ecology on Rice Production Efficiency in Ghana

2018 ◽  
Vol 2018 ◽  
pp. 1-10 ◽  
Author(s):  
John Kanburi Bidzakin ◽  
Simon C. Fialor ◽  
Dadson Awunyo-Vitor ◽  
Iddrisu Yahaya
Keyword(s):  
Economic Efficiency ◽  
Production Efficiency ◽  
Positive Impact ◽  
Stochastic Frontier ◽  
Allocative Efficiency ◽  
Rice Production ◽  
Cross Sectional ◽  
Rice Farmers ◽  
Effect Regression ◽  
The Impact

Irrigation production is a means by which agricultural production can be increased to meet the growing food demands in the world. This study evaluated the effect of irrigation ecology on farm household technical, allocative, and economic efficiency of smallholder rice farmers. Cross-sectional data was obtained from 350 rice farmers across rain fed and irrigation ecologies. Stochastic frontier analyses are used to estimate the production efficiency and endogenous treatment effect regression model is used to estimate the impact of irrigation ecology on rice production efficiency. The impact of irrigation ecology on technical efficiency is about 0.05, which implies farmers producing under irrigation ecology are more technically efficient in their rice production than those in rain fed production. The impact of irrigation ecology on allocative efficiency is about 0.33, which shows that farmers participating in irrigation farming are more allocatively efficient in their rice production than those in rain fed production. The impact on economic efficiency is about 0.23, meaning that farmers participating in irrigation farming are more economically efficient in their rice production than those in rain fed production. Irrigation ecology has positive impact on production efficiency; hence farmers should be encouraged to produce more under irrigation for increased yield and profit.

scholarly journals Measuring the Effect of Size on Technical Efficiency of the United Arab Emirates Hospitals

2016 ◽  
Vol 9 (3) ◽  
pp. 116 ◽  
Author(s):  
Ashraf Mahate ◽  
Samer Hamidi ◽  
Fevzi Akinci
Keyword(s):  
Technical Efficiency ◽  
United Arab Emirates ◽  
Health Authority ◽  
Allocative Efficiency ◽  
Economies Of Scope ◽  
Optimal Size ◽  
Data Envelopment ◽  
Future Health ◽  
Hospital Size ◽  
Technical And Allocative Efficiency

<p><strong>OBJECTIVE:</strong> The main purpose of this study is to estimate the technical efficiency of the United Arab Emirates (UAE) hospitals and examine the effect of hospital size on estimated technical efficiency scores.</p><p><strong>METHODS: </strong>Using 2012 data from Ministry of Health, Dubai Health Authority, and Health Authority in Abu Dhabi,<strong> </strong>we employed a nonparametric method, data envelopment analysis (DEA), to estimate the technical efficiency of 96 private and governmental hospitals in the UAE. Efficiency scores are calculated using both Banker, Charnes, and Cooper (BCC) and Charnes, Cooper, and Rhodes (CCR) models. </p><p><strong>RESULTS: </strong>The average technical efficiency of the UAE hospitals is estimated at 59% based on the BBC model and at 48% based on the CCR model. The optimal size of a hospital in the UAE is between 100 to 300 beds. We also found evidence of economies of scope between the provision of outpatient and inpatient care in the UAE hospitals.</p><p><strong>CONCLUSION: </strong>Our findings indicate that only one third of the UAE hospitals are technically efficient. There is evidence to suggest that there are considerable efficiency gains yet to be made by many UAE hospitals. Additional empirical research is needed to inform future health policies aimed at improving both the technical and allocative efficiency of hospital services in the UAE. </p>

scholarly journals Technical and Resource Use Efficiency of Urban Vegetable Farming in the Kumasi Metropolis: A Stochastic Frontier Approach

2018 ◽  
Vol 8 (2) ◽  
pp. 92-103
Author(s):  
Adams Abdulai ◽  
Simon Cudjoe Fialor ◽  
John Eudes Andivi Bakang ◽  
Emmanuel Tetteh Jumpah
Keyword(s):  
Job Search ◽  
Stochastic Frontier ◽  
Allocative Efficiency ◽  
Productive Efficiency ◽  
Extension Agents ◽  
Vegetable Production ◽  
Stochastic Frontier Approach ◽  
Cross Sectional ◽  
Vegetable Farmers ◽  
The Government

The changing food demands by the teeming urban population, job search, and sector profitability have made vegetable production indispensable as it contributes to increased incomes and livelihoods of urban dwellers.This study investigated the current level of productive efficiency (technical and allocative) of vegetable farmers in the Kumasi Metropolis using cross-sectional data obtained from 135 sampled farmers using a semi-structured questionnaire. Data analysis was conducted using the stochastic frontier approach to estimate firm-specific technical efficiencies and the factors that influence efficiency levels. The results show that inefficiency exists among the sampled vegetable farmers as they currently achieve an average technical efficiency score of 66.7%. Allocative efficiency estimates for land and labour revealed that both factors of production are over utilised by farmers. The age of the farmer is the main socio-economic determinant of technical efficiency.The study recommends that farmers be educated on the correct use of inputs by extension agents. The government policy of recruiting community extension agents under the ‘planting for food and jobs’ programme is in line with addressing inefficiency in the production sector and should be promoted.

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