scholarly journals Production Risk and Competency among Categorized Rice Peasants: Cross-Sectional Evidence from an Emerging Country

2020 ◽  
Vol 12 (9) ◽  
pp. 3770 ◽  
Author(s):  
Muhammad Rizwan ◽  
Ping Qing ◽  
Abdul Saboor ◽  
Muhammad Amjed Iqbal ◽  
Adnan Nazir
Keyword(s):  
Research Effort ◽  
Stochastic Frontier ◽  
Risk And Uncertainty ◽  
Cross Sectional ◽  
Production Risk ◽  
Farm Work ◽  
Agrarian Economy ◽  
Function Coefficient ◽  
Stochastic Frontier Models ◽  
Long Run

Pakistan is an agrarian economy confronting both risk and uncertainty. Rural migration to urban and off-farm work is increasing in the country. Off-farm work assists in decreasing risk and uncertainty while technical efficiency is linked with off-farm employment. This research effort aims at investigating the underpinnings of production characteristics, risk, and efficiency across categories of rice farmers, i.e., with and without off-farm work, by developing two stochastic frontier models. Empirical results reveal that both groups of farmers are using inputs in different ways, subsequently production varies across these groups. Farmers in both the categories have common characteristics in terms of production function. Coefficient of family size is positively significant to the group of farmers having off-farm work while negatively associated to their counterparts. High temperature and prevalence of disease found risk increasing factors. Though one group is more efficient, in general both groups are technically inefficient. The short-term policy focus should be diverted to ensuring availability and timely application of inputs to enhance efficiency. In the long run, policy initiatives need to be taken towards rural development by providing employment facilitating social and economic infrastructure, along with focus on Research and Development (R&D) particularly keeping the rice belt in view.

The Effects of Improved Cassava Variety Adoption on Farmers’ Technical Efficiency in Indonesia

2021 ◽  
Vol 11 (4) ◽  
pp. 269-278
Author(s):  
Syafrial ◽  
Hery Toiba ◽  
Moh Shadiqur Rahman ◽  
Dwi Retnoningsih
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Probit Regression ◽  
Cross Sectional ◽  
Factors Affecting ◽  
Frontier Analysis ◽  
Access To Credit ◽  
Farm Work ◽  
The Impact

The adoption of technological innovations, such as an improved variety, has been widely promoted worldwide to improve agricultural productivity. This study aimed to examine factors affecting farmers’ decision to adopt a new improved cassava varieties (NICV), and to estimate the effects of NICV adoption on farmers’ technical efficiency. This research used cross-sectional data from 300 cassava farmers in East Java, Indonesia. Furthermore, the data were analyzed by probit regression to examine factors affecting farmers’ decision to adopt NICV. Propensity score matching (PSM) procedures and stochastic frontier analysis were applied to evaluate the impact of NICV adoption on farmers’ technical efficiency. The results indicated that adoption was highly influenced by cooperative membership, access to credit, internet access, certified land, and off-farm work. The stochastic frontier analysis, by controlling the matched sample using PSM procedures, demonstrated that NICV adoption positively and significantly impacted farmers’ technical efficiency. Those who adopted NICV showed a higher technical efficiency level than those who did not. This finding implies that improved varieties could be further promoted to increase productivity. The research suggests that there is a need to improve NICV adoption to increase the levels of technical efficiency and productivity.

scholarly journals The Estimation of Reservation Wages: A Simulation-Based Comparison

2014 ◽  
Vol 234 (5) ◽  
Author(s):  
Julian S. Leppin
Keyword(s):  
Monte Carlo Simulation ◽  
Predictive Power ◽  
Stochastic Frontier ◽  
Stochastic Frontier Model ◽  
Reservation Wage ◽  
Cross Sectional ◽  
Reservation Wages ◽  
Stochastic Frontier Models ◽  
Simulation Based ◽  
The Mean

SummaryThis paper examines the predictive power of different estimation approaches for reservation wages. It applies stochastic frontier models for employed persons and the approach from Kiefer and Neumann (1979b) for unemployed persons. Furthermore, the question of whether or not reservation wages decrease over the unemployment period is addressed. This is done by a simulated panel with known reservation wages which uses data from the Socio-Economic Panel as a basis. The comparison of the estimators is carried out by a Monte Carlo simulation. In case of employed persons, the cross-sectional stochastic frontier model shows the best performance. The Kiefer-Neumann approach for unemployed persons is able to predict decreasing reservation wages but the rise of the mean reservation wage in case of a constant simulated reservation wage went undetected. In general, the Kiefer-Neumann approach overestimates the reservation wage.

Inferences from Cross-Sectional, Stochastic Frontier Models

2009 ◽  
Vol 29 (1) ◽  
pp. 62-98 ◽  
Author(s):  
Léopold Simar ◽  
Paul W. Wilson
Keyword(s):  
Stochastic Frontier ◽  
Cross Sectional ◽  
Stochastic Frontier Models

scholarly journals Panel Econometric Analysis on Mobile Payment Transactions and Traditional Banks Effort toward Financial Accessibility in Sub-Sahara Africa

2020 ◽  
Vol 12 (3) ◽  
pp. 895 ◽  
Author(s):  
Cephas Paa Kwasi Coffie ◽  
Hongjiang Zhao ◽  
Isaac Adjei Mensah
Keyword(s):  
Time Series Data ◽  
Unit Root Test ◽  
Panel Cointegration ◽  
Ordinary Least Squares ◽  
Sustainable Growth ◽  
Series Data ◽  
Mobile Payment ◽  
Cross Sectional ◽  
Mobile Payments ◽  
Long Run

The financial landscape of sub-Sahara Africa is undergoing major changes due to the advent of FinTech, which has seen mobile payments boom in the region. This paper examines the salient role of mobile payments in traditional banks’ drive toward financial accessibility in sub-Sahara Africa by using panel econometric approaches that consider the issues of independencies among cross-sectional residuals. Using data from the World Development Index (WDI) 2011–2017 on 11 countries in the region, empirical results from cross-sectional dependence (CD) tests, panel unit root test, panel cointegration test, and the fully modified ordinary least squares (FMOLS) approach indicates that (i) the panel time series data are cross-sectionally independent, (ii) the variables have the same order of integration and are cointegrated, and (iii) growth in mobile payment transactions had a significant positive relationship with formal account ownership, the number of ATMs, and number of new bank branches in the long-run. The paper therefore confirms that the institutional structure of traditional banks that makes them competitive, irrespective of emerging disruptive technologies, has stimulated overall financial accessibility in the region leading to overall sustainable growth in the financial sector. We conclude the paper with feasible policy suggestions.

scholarly journals Constraints in models of production and cost via slack-based measures

2021 ◽  
Author(s):  
Caroline Khan ◽  
Mike G. Tsionas
Keyword(s):  
Power Generation ◽  
Stochastic Frontier ◽  
Inequality Constraints ◽  
Order Conditions ◽  
Flexible Functional Forms ◽  
Cost Share ◽  
First Order ◽  
Stochastic Frontier Models ◽  
Endogenous Variables ◽  
Functional Forms

AbstractIn this paper, we propose the use of stochastic frontier models to impose theoretical regularity constraints (like monotonicity and concavity) on flexible functional forms. These constraints take the form of inequalities involving the data and the parameters of the model. We address a major concern when statistically endogenous variables are present in these inequalities. We present results with and without endogeneity in the inequality constraints. In the system case (e.g., cost-share equations) or more generally, in production function-first-order conditions case, we detect an econometric problem which we solve successfully. We provide an empirical application to US electric power generation plants during 1986–1997, previously used by several authors.

scholarly journals Application of the theory of decision making under risk and uncertainty at modelling of costs

2010 ◽  
Vol 56 (No. 5) ◽  
pp. 201-208 ◽  
Author(s):  
M. Beranová ◽  
D. Martinovičová
Keyword(s):  
Decision Making ◽  
Financial Accounting ◽  
Cost Functions ◽  
Risk And Uncertainty ◽  
Managerial Decision ◽  
Managerial Decision Making ◽  
Bayesian Theorem ◽  
Long Run ◽  
Short Run ◽  
The Cost

The costs functions are mentioned mostly in the relation to the Break-even Analysis where they are presented in the linear form. But there exist several different types and forms of cost functions. Fist of all, it is necessary to distinguish between the short-run and long-run cost function that are both very important tools of the managerial decision making even if each one is used on a different level of management. Also several methods of estimation of the cost function's parameters are elaborated in the literature. But all these methods are based on the past data taken from the financial accounting while the financial accounting is not able to separate the fixed and variable costs and it is also strongly adjusted to taxation in the many companies. As a tool of the managerial decision making support, the cost functions should provide a vision to the future where many factors of risk and uncertainty influence economic results. Consequently, these random factors should be considered in the construction of cost functions, especially in the long-run. In order to quantify the influences of these risks and uncertainties, the authors submit the application of the Bayesian Theorem.

Firm Characteristics, Relative Efficiency, and Equity Returns

2009 ◽  
Vol 44 (1) ◽  
pp. 213-236 ◽  
Author(s):  
Giao X. Nguyen ◽  
Peggy E. Swanson
Keyword(s):  
Explanatory Power ◽  
Stochastic Frontier ◽  
Efficiency Score ◽  
Equity Returns ◽  
Firm Characteristics ◽  
Stochastic Frontier Approach ◽  
Cross Sectional ◽  
Firm Efficiency ◽  
The Difference ◽  
Sectional Analysis

AbstractThis study uses a stochastic frontier approach to evaluate firm efficiency. The resulting efficiency score, based on firm characteristics, is the input for performance evaluation. The portfolio composed of highly efficient firms significantly underperforms the portfolio composed of inefficient firms even after adjustment for firm characteristics and risk factors, suggesting a required premium for the inefficient firms. The difference in performance between the two portfolios remains for at least five years after the portfolio formation year. In addition, firm efficiency exhibits significant explanatory power for average equity returns in cross-sectional analysis.

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