scholarly journals Interpreting Stochastic Frontier Model as Random Coefficient Model and Vice Versa

2021 ◽  
pp. 15-18
Author(s):  
Spyros Missiakoulis
Keyword(s):  
Stochastic Frontier ◽  
Jel Classification ◽  
Random Coefficient ◽  
Stochastic Frontier Model ◽  
Stochastic Production Frontier ◽  
Production Frontier ◽  
Random Coefficient Regression ◽  
Stochastic Production ◽  
The Relationship ◽  
Special Case

Abstract This note explores the relationship between the stochastic frontier model and the random coefficient regression model. It shows how to interpret the former as a special case of the latter and vice versa. JEL classification numbers: C13, C51, D24. Keywords: Stochastic production frontier, Random coefficient regression, Composite error, Technical inefficiency.

scholarly journals STOCHASTIC PRODUCTION FRONTIER: FRAMEWORK AND DEVELOPMENT

2012 ◽  
Vol 5 (2) ◽  
pp. 88
Author(s):  
Suyanto Suyanto
Keyword(s):  
Panel Data ◽  
Technical Efficiency ◽  
Stochastic Frontier ◽  
Theoretical Framework ◽  
Stochastic Production Frontier ◽  
Production Frontier ◽  
Stochastic Frontier Approach ◽  
Two Stage ◽  
Stochastic Production ◽  
The One

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.

scholarly journals Technical efficiency of certified maize seed in Palpa district, Nepal: A stochastic frontier production approach

2018 ◽  
Vol 3 (1) ◽  
pp. 45-52
Author(s):  
Mahima Bajracharya ◽  
Mahesh Sapkota
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier ◽  
Sampling Technique ◽  
Simple Random Sampling ◽  
Stochastic Production Frontier ◽  
Maize Seed ◽  
Production Frontier ◽  
Stochastic Production ◽  
The Cost ◽  
Production Approach

The cereal crop, maize is regarded as staple food mainly in hill areas of Nepal. Seed is one of the vital input which determines the production and yield of any crop. Farmers are found using the required inputs in haphazard way which had increased the cost of production and inefficiency of resources used. The study on seed sector is limited. For such a backdrop, this study was aimed to assess the level of technical efficiency (TE) of certified maize seed production. The total of 164 certified seed producer were interviewed in June, 2016 using simple random sampling technique in Palpa district of Nepal. The result revealed that increase in amount of seed and labor by one percent would increase the yield of certified maize seed by 0.29 and 0.34 percent respectively. The TE was estimated using stochastic production frontier model in Stata software. The average TE was found 70 percent which revealed the scope of increasing TE by 30 percent using the existing available resources. There were about 29 percent farmers who had TE of ≥0.7-0.8 followed by 27.44 percent at ≥0.8-0.9. Government and other stakeholders should prioritize to provide technical knowledge via training and increase the visit of extension worker to increase TE of certified maize seed producer in the district.

scholarly journals Technical Efficiency of the Setbag Net Fishery in Bangladesh: An Application of a Stochastic Production Frontier Model

2018 ◽  
Vol 15 (2) ◽  
pp. 59-65 ◽  
Author(s):  
Md Golam Rabbani ◽  
Md Akhtaruzzaman Khan ◽  
M Serajul Islam ◽  
Rozina Yeasmin Lucky
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier ◽  
Stochastic Production Frontier ◽  
Production Frontier ◽  
Technical Inefficiency ◽  
Total Cost ◽  
Fishing Boat ◽  
Effect Model ◽  
Proper Training ◽  
Stochastic Production

A study was conducted to examine the technical efficiency for Setbag net fishing boats operated in the year 2014. A total of 100 samples of Setbag net fishing boats were selected, of which 40 were from Cox’s Bazar, 40 were from Chittagong and 20 were from Bagerhat. Stochastic frontier (with technical inefficiency effect) model was specified and estimated. Results have shown that the estimated mean technical efficiency of Setbag net fishing boats is 84 percent. The efficiency of Setbag net fishing boat was positively associated with total cost, while the number of nets were negatively related to fishing day and crew size. Head maji’s age had significant effect on inefficiency at 5% level. Although, the effect on boats’ efficiency was positive, (though insignificant) for head maji’s experience, head maji’s education, engine horse power and boat age. The use of modern fishing boat and improved fishing technology should be promoted, through proper training and motivation program for fisher. At the same time old and unfit fishing boat and gears should be gradually removed and replaced by new and modern fishing boat.The Agriculturists 2017; 15(2) 59-65

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

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.

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

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.

Drought: The Silent Harm of Migration From Central America During the Period 1990 to 2019

2021 ◽  
Author(s):  
Sazcha Olivera ◽  
María del Pilar Fuerte-Celis ◽  
Bernardo Bolaños
Keyword(s):  
Central America ◽  
Human Mobility ◽  
Stochastic Frontier ◽  
Drought Event ◽  
Stochastic Frontier Model ◽  
Climate Factors ◽  
Place Of Origin ◽  
Climate Events ◽  
The Relationship ◽  
Rain Precipitation

The worldwide number of migrants has had a rapid increase during the last fifteen years. Despite the extensive research studies that elucidate the increase in migrants' recipient countries, we know little about the relationship between the climate factors and human mobility in the countries of origin. Hence, this study focuses on the effects of weather and the propensity of individuals to leave a territory by measuring the importance of rain precipitation or the lack of it in one of the critical food corridors of Central America, formed by El Salvador, Honduras, and Guatemala. To study the mobility process, we develop a stochastic frontier model; the main result shows a greater propensity to migrate when there is a significant drought event in the place of origin. Some other factors that motivate people to leave their homeland are the effect of other climate events measured through the control system (ENSO), homicide levels, economic performance, and exchange rate. The findings allow differentiating between drought and excess precipitation on a population and mobility to other territories. In addition, these results permit us to derive observable implications of the different effects of flooding and drought and create public policies of prevention, mitigation, and resilience.

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