scholarly journals Market Structure Conduct Performance Hypothesis Revisited Using Stochastic Frontier Efficiency Analysis

2012 ◽  
Vol 48 (3) ◽  
Author(s):  
Saleem Shaik ◽  
Albert J. Allen ◽  
Seanicaa Edwards ◽  
James Harris
Keyword(s):  
Market Structure ◽  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Efficiency Measure ◽  
Frontier Analysis ◽  
Input Variables ◽  
And Performance ◽  
Frontier Efficiency ◽  
The Relationship

Stochastic frontier analysis, which is used to estimate technical efficiency, is extended to examine the market structure, conduct and performance hypothesis for the U.S. trucking industry. The technical efficiency measure takes into account not only the relationship between inputs used in the production of output, but it also examines the importance of market structure conduct factors to the performance of the firm. An empirical application to U.S. trucking carriers over the period 1994-2003 is examined. Results reveal that average haul, average load, debt-to-equity and market concentration significantly affected technical efficiency. Capital, fixed and variable input variables were significant in the production function equation.

scholarly journals Contribution of Co-Skewness and Co-Kurtosis of the Higher Moment CAPM for Finding the Technical Efficiency

2014 ◽  
Vol 2014 ◽  
pp. 1-9 ◽  
Author(s):  
Md. Zobaer Hasan ◽  
Anton Abdulbasah Kamil
Keyword(s):  
Risk Factors ◽  
Stock Market ◽  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stock Exchange ◽  
Stochastic Frontier ◽  
Frontier Analysis ◽  
Two Factors ◽  
Input Variables ◽  
The Individual

The objective of this paper is to present the technical efficiency of individual companies and their respective groups of Bangladesh stock market (i.e., Dhaka Stock Exchange, DSE) by using two risk factors (co-skewness and co-kurtosis) as the additional input variables in the Stochastic Frontier Analysis (SFA). The co-skewness and co-kurtosis are derived from the Higher Moment Capital Asset Pricing Model (H-CAPM). To investigate the contribution of these two factors, two types of technical efficiency are derived: (1) technical efficiency with considering co-skewness and co-kurtosis (WSK) and (2) technical efficiency without considering co-skewness and co-kurtosis (WOSK). By comparing these two types of technical efficiency, it is noticed that the technical efficiency of WSK is higher than the technical efficiency of WOSK for the individual companies and their respective groups. As per available literature in the context Bangladesh stock market, no study has been conducted thus far to measure technical efficiency of companies and their respective groups by using the risk factors which are derived from the H-CAPM. In this research, the link between H-CAPM and SFA is established for measuring technical efficiency and it is believed that the findings of this study may be applied to other emerging stock markets.

scholarly journals Analysis of the efficiency performance of Sharia and conventional banks using stochastic frontier analysis

2018 ◽  
Vol 13 (2) ◽  
pp. 27-38 ◽  
Author(s):  
Isfenti Sadalia ◽  
Muhammad Haikal Kautsar ◽  
Nisrul Irawati ◽  
Iskandar Muda
Keyword(s):  
Technical Efficiency ◽  
Commercial Banks ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Average Score ◽  
Public Confidence ◽  
Frontier Analysis ◽  
Operational Costs ◽  
Input Variables ◽  
Conventional Banks

There are two sectors of banks operating in Indonesia, namely Sharia banks and conventional banks. Improving performance is important in maintaining public confidence in the bank. Efficiency is one of the parameters to measure the performance of Sharia banks. This study measures the comparative level of technical efficiency of Sharia commercial banks and conventional banks by Stochastic Frontier Analysis method during 2011–2015 period by using 10 samples of Sharia commercial banks and conventional banks. Input variables in this study are total deposits, operational costs, and other operational costs. Total financing is an output variable. The results of this study show that total deposits and operational costs have a positive and significant impact on total financing in Sharia and conventional banks. The average score of the technical efficiency of Sharia commercial banks during the period observed is 0.84 and conventional banks is 0.85.

scholarly journals Measuring the Efficiency of BAZNAS in Managing Zakat Funds with Stochastic Frontier Approach Analysis, 2002–2016

2018 ◽  
Vol 3 (1) ◽  
pp. 89-107
Author(s):  
Risanda A. ◽  
Faishol Luthfi ◽  
Sri Herianingrum
Keyword(s):  
Time Series ◽  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Time Series Data ◽  
Stochastic Frontier ◽  
Series Data ◽  
Stochastic Frontier Approach ◽  
Frontier Analysis ◽  
Operational Costs ◽  
Input Variables

This study aims to measure the technical efficiency and identify factors that cause technical inefficiency of Badan Amil Zakat Nasional (BAZNAS) in managing zakat funds on receipt and the distribution of zakat funds. The data used were time series data from 2002 to2016. The input variables used were total assets and operational costs, while the output variables were the receipt of zakat funds and the distribution of zakat funds. Using stochastic frontier analysis, this study has successfully identified that total assets and operational costs had a positive and significant effect on the receipt of zakat funds. The same results also demonstrated that the operational costs for the distribution of zakat funds had a positive and significant effect. The results for total assets on distribution of zakat funds were positive but not significant. Overall, the technical efficiency regarding the receipt of BAZNAS zakat funds was found to be 94.98 percent, which means that there is 5.02 percent remaining that could still be optimized, while technical efficiency regarding the distribution of BAZNAS zakat funds was found to be 70.99 percent, leaving 29.01 percent that could still be optimized. Keywords: Badan Amil Zakat Nasional (BAZNAS), Stochastic Frontier Analysis, Technical Efficiency

scholarly journals Slovak agricultural farms in different regions – comparison of efficiency

2008 ◽  
Vol 54 (No. 4) ◽  
pp. 158-165 ◽  
Author(s):  
Z. Sojková ◽  
Z. Kropková ◽  
V. Benda
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Agricultural Land ◽  
Stochastic Frontier ◽  
Total Output ◽  
Data Set ◽  
Frontier Analysis ◽  
Dummy Variable ◽  
Input Variables ◽  
Production Conditions

This paper presents the results of stochastic parametric approach used in estimation of production frontier. The estimation of output oriented technical efficiency was based on the Stochastic Frontier analysis with Cobb-Douglas production function. The model also included a dummy variable which expressed production conditions in which Slovak farms are operating. We divided farms into two groups regarding production conditions: productive regions (PR) and less favorable area (LFA) regions. The data set included 79 Slovak farms operating in different regions in the 2003–2005 time periods. The following input variables are included in the model: capital, material, labour and agricultural land according to the LPIS system. Total output was used as the output variable. From the achieved results, we can conclude that the significant statistical differences in average technical efficiency were detected only in year 2005 between the farms of the mentioned production conditions. A higher level of variability in technical efficiency was detected in farms operating in productive regions compared to technical efficiency of farms in the LFA regions.

To export or not to export? The link between the exporter status of a firmand its technical efficiency in Russia’s manufacturing sector

2016 ◽  
pp. 123-146 ◽  
Author(s):  
N. Krasnopeeva ◽  
E. Nazrullaeva ◽  
A. Peresetsky ◽  
E. Shchetinin
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Manufacturing Sector ◽  
Stochastic Frontier ◽  
Marginal Effect ◽  
Frontier Analysis ◽  
Exporting Firms ◽  
Status Effect ◽  
The Relationship ◽  
Generally True

Is it generally true that being an exporter for a firm is associated with a higher productivity? We study the relationship between firms’ export status and their technical efficiency in Russian manufacturing sector in 2004-2013 using the data from the Bureau van Dijk database “Ruslana”. To estimate the exporter status effect we apply two methods, both based on the stochastic frontier analysis. The first approach estimates the effect as the marginal effect of the exporter status on technical efficiency. The second approach is based on the propensity score matching of exporting firms with nonexporting firms. We obtain robust results which suggest that the relationship between the exporter status and technical efficiency is positive. In both cases the exporter status’ effect is up to 0.03 (3 p. p.).

scholarly journals Technical Efficiency of Smallholder Tomato Production in Semi-Urban Farms in Cameroon: A Stochastic Frontier Production Approach

2017 ◽  
Vol 7 (4) ◽  
pp. 27 ◽  
Author(s):  
Martin Paul Jr. Tabe-Ojong ◽  
Ernest L. Molua
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Smallholder Farmers ◽  
Research Question ◽  
Stochastic Frontier ◽  
Negative Influence ◽  
Farm Size ◽  
Primary Data ◽  
Tomato Production ◽  
Frontier Analysis

Agriculture is the mainstay of Cameroon’s economy as it serves the purposes of food, livelihood and employment. Nevertheless, the country’s agriculture is plagued by low productivity and inefficiency in production. One of the main reasons for low productivity is the inability of farmers to fully exploit available technologies and production techniques. An important research question that comes to mind is, what are the major factors that hinder the technical efficiency of smallholder farmers? This study thus aimed to determine the level of technical efficiency in the production of tomato in smallholder farms, relying on primary data collected using a structured survey instrument administered to 80 tomato farmers in the Buea municipality of Cameroon. Data was analyzed using descriptive statistics and a stochastic frontier analysis method in the Cobb-Douglas production function. The STATA.14 software was used to obtain both stochastic frontier estimates and the determinants of technical efficiency. The results indicate that farmers are not fully technically efficient with a mean technical efficiency score of 0.68 with one farmer operating on the frontier. The study also revealed that most of the farmers irrespective of the size of the holdings have shown technical inefficiency problems. The older farmers were observed with the best measures of technical efficiency. Education, age and the adoption and practice of agronomic techniques had a positive and significant influence on technical efficiency while the nearest distance to the extension agent had a rather negative influence on technical efficiency. The input-output relationship showed that the area of tomato cultivation and the quantity of improved seed used were positive and significantly related to output at the 5% level of probability. As a result, it is recommended that farmers should increase their farm size, use of improved seeds and the adoption and practice of novel techniques in production. More emphasis should be placed on extension agents as they have a significant role to play in terms of improving and augmenting farmers’ education and information base through on farm demonstrations and result oriented workshops as all this will ensure increased production and productivity thereby increasing technical efficiency and achieving food self-sufficiency.

scholarly journals Technical Efficiency and Small Scale Maize Producers in Mwanza Region: A Stochastic Frontier Analysis

2021 ◽  
Vol 9 (3) ◽  
Author(s):  
Mukole Kongolo
Keyword(s):  
Technical Efficiency ◽  
Best Practice ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Likelihood Estimation ◽  
Estimation Procedure ◽  
Farm Size ◽  
Small Scale ◽  
Maize Production ◽  
Frontier Analysis

This study measured technical efficiency and its determinants in maize production by small-scale producers in Mwanza region, using a stochastic frontier production function approach. A randomly selected sample of participants in the two districts was used. The Maximum Likelihood estimation procedure was followed to obtain the determinants of technical efficiency and technical efficiency levels of small-scale maize producers. The minimum and maximum values of technical efficiency were between 20% and 91%, indicating that the least practices of specific producer operates at a minimum level of 20%, while the best practice producers  operate  at 91% technical efficiency  level respectively. The summary results of the mean technical efficiency was 63%. The main determinants of technical efficiency were labour, farm size, producer’s experience, producer’s age, family size which were all positive and statistically significant. The findings suggest that the average efficiency of small-scale maize producers could be improved by 37% through better use of existing resources and technology. These findings highlight the need for action by government to assist small-scale maize producers improve efficiency.

scholarly journals Technical Efficiency among Pepper Farmers in Sarawak, Malaysia: A Stochastic Frontier Analysis

2020 ◽  
Vol 10 (3) ◽  
pp. 729-739
Author(s):  
Anita Rosli ◽  
Alias Radam ◽  
Khalid Abdul Rahim ◽  
Amin Mahir Abdullah
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Agricultural Practices ◽  
Piper Nigrum ◽  
Maximum Output ◽  
Full Time ◽  
Frontier Analysis ◽  
One Step ◽  
The Mean

This study aimed to estimate the technical efficiency among pepper (Piper nigrum. L) farmers in Sarawak, Malaysia, using Stochastic Frontier Analysis (SFA). SFA involves a one-step process that can estimate technical inefficacy factors simultaneously with the production frontier. 678 pepper farmers were involved in this study, and the data were collected from 2012 to 2013. The mean score for technical efficiency was 0.518, indicating that pepper farmers were not efficient. However, the inefficiency model showed that education level, membership in farmers’ association, full-time as a pepper farmer, attending courses and visiting sample farms were factors that significantly improved inefficiency. The major problem of pepper farming in Sarawak is poor agricultural practices where farmers do not fully utilize the available agricultural inputs to produce maximum output. Based on the findings, farmers must improve their knowledge and skills in pepper farming through agronomic education.

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