Allocative Efficiency of Broiler Farms in District Charsadda, Khyber Pakhtunkhwa: Stochastic Frontier Analysis

The needs of cabbages tends to increase. Meanwhile, cabbage production is not optimal and just seasonal. However, demands of cabbages in export field are high so, it makes the cabbage farming is a strategic area to be developed. To increase production through increasing the use of inputs and using new technologies is relatively difficult because it requires high costs. Therefore, increasing production by improving farming efficiency is a relevant option. Farmers’ managerial skills and their combining various production inputs ability will affect the production. Efficient use of input amount (allocative efficiency) and a good technical efficiency are important for increasing the production. Production of cabbage farming efficiency was analyzed by using stochastic frontier analysis (SFA). The results of the analysis showed that the technical, allocative and economic efficiency of cabbage farming in Karo District had not achieved. The average of the technical, allocative and economic efficiency values of the respondent were 0.697, 0.374 and 0.215. These results indicate that low efficiency is a contributing factor to the low productivity of the cabbage farmer respondents' in Karo District. Several factors that have a significant effect on the efficiency are farming experience, labor ratio, land ownership status and cabbage lifespan.

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Productivity of Nations: A Stochastic Frontier Approach to TFP Decomposition

Economics Research International ◽

10.1155/2012/584869 ◽

2012 ◽

Vol 2012 ◽

pp. 1-19 ◽

Cited By ~ 13

Author(s):

Jorge Oliveira Pires ◽

Fernando Garcia

Keyword(s):

Technical Change ◽

Stochastic Frontier Analysis ◽

Scale Effects ◽

Stochastic Frontier ◽

Allocative Efficiency ◽

Developing Nations ◽

Production Frontier ◽

Stochastic Frontier Approach ◽

Frontier Analysis ◽

Long Period

This paper tackles the problem of aggregate TFP measurement using stochastic frontier analysis. We estimate a world production frontier for a sample of 75 countries over a long period. The “Bauer-Kumbhakar” decomposition of TFP is applied to a smaller sample in order to evaluate the effects of changes in efficiency (technical and allocative), scale effects, and technical change. Estimated technical efficiency scores are compared to productivity indexes offered by nonfrontier studies. We conclude that differences in productivity are responsible for virtually all the differences of growth performance between developed and developing nations and that a large part of this is due to allocative efficiency.

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Empirical Measurement of Competition in the Thai Banking Industry

Economies ◽

10.3390/economies8020044 ◽

2020 ◽

Vol 8 (2) ◽

pp. 44

Author(s):

Jirawan Prayoonrattana ◽

Thanarak Laosuthi ◽

Bundit Chaivichayachat

Keyword(s):

Stochastic Frontier Analysis ◽

Banking Industry ◽

Stochastic Frontier ◽

Allocative Efficiency ◽

Banking System ◽

Banking Competition ◽

Frontier Analysis ◽

Average Value ◽

Lerner Index ◽

Efficiency And Effectiveness

The degree of competition in the banking industry can be observed and measured by two approaches, structural and nonstructural. Based on these two approaches, there are various indicators, which are different factors and methods. This paper aims to provide calculations, determine a good indicator, and assess the competitive environment of the Thai banking industry. Specifically, there are four indicators—concentration ratio, Herfindahl–Hirschman Index, Lerner Index, and Panzar–Rosse H statistic—which are widely used to examine the efficiency and effectiveness of policies in the banking industry. The findings indicate that the Lerner Index, calculated by stochastic frontier analysis, is the most reliable indicator of the banking competition environment in Thailand. It has a range of 0.36 to 0.60 and an average value of 0.40. Furthermore, during the period of study, the degree of Thai banking competition had a tendency to increase over time, which reflects an increase in allocative efficiency of resources in the banking industry. This is in accordance with the Financial Sector Master Plan of the country. However, this result probably leads to instability of the financial system. Therefore, policy-makers should carefully regulate competition policy by considering the systematic risk of the banking system at the same time.

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Allocative Efficiency Analysis of Capsicum Cropping System under Tunnels

WSEAS TRANSACTIONS ON ENVIRONMENT AND DEVELOPMENT ◽

10.37394/232015.2021.17.48 ◽

2021 ◽

Vol 17 ◽

pp. 502-509

Author(s):

Hina Fatima ◽

Lal K Almas ◽

Bushra Yasmin

Keyword(s):

Stochastic Frontier Analysis ◽

Cropping Systems ◽

Stochastic Frontier ◽

Allocative Efficiency ◽

Cropping System ◽

Minimum Cost ◽

Optimum Level ◽

Frontier Analysis ◽

Farm Inputs ◽

Allocative Inefficiency

The focus of this study was to analyze the allocative efficiency of the capsicum cropping system under tunnels. The data is collected from those farmers that were cultivating the capsicum crops under the tunnels in Pakistan. Cultivation of the crops under tunnels has a rising trend in Pakistan. To achieve the best possible output with a minimum cost of newly opted farm technology can be beneficial if farmers have proper skill and know-how regarding the application of balanced use of inputs. The sample size was around 150 capsicum farms. The Stochastic Frontier Analysis (SFA) was used to examine the allocative efficiency of capsicum farms in Pakistan. The result of the study demonstrated that the average allocative efficiency of capsicum cropping systems under tunnels in Pakistan was around 65%. Around 35% of allocative inefficiency is present in the capsicum cropping system. Mismanagement of resources related to the utilization of farm inputs i one of the main reasons for allocative inefficiency. After removing the mismanagement of resources, most farms have another way of reducing allocative inefficiency. It is linked with reallocating inputs or changing the input combination used, to achieve an optimum level of capsicum output at a given level of input prices. Hence, the objective of adoption of advanced farm technologies along with balanced application of farm inputs will result in higher farm productivity and allocative efficiency.

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