scholarly journals Formation and Efficient Estimation of Stochastic Frontier Production Function

2021 ◽  
Vol 9 (4) ◽  
Author(s):  
N. J Dhanesh
Keyword(s):  
Technical Efficiency ◽  
Production Function ◽  
Stochastic Frontier ◽  
Efficient Estimation ◽  
Production Functions ◽  
Production Model ◽  
Stages Of Growth ◽  
Stochastic Frontier Production Function ◽  
Plantation Crops ◽  
Frontier Production Function

Technological change and efficiency improvement are important sources of productivity growth in any economy. The concept of technical efficiency (TE) is based on input and output relationships. Technical inefficiency arises when actual or observed output from a given input mix is less than a possible mix. The analysis of technical efficiency involves the assessment of the degree to which the production technologies are utilized. The present investigation on “Formation and efficient estimation of stochastic frontier production functions” was carried out in the Department of Agricultural Statistics, College of Horticulture, Vellanikkara, during 2010 -13. To assess the present economics of pepper cultivation, to formulate a new stochastic frontier production function and to compare different stochastic frontier production functions. The secondary data on the area of holdings, number of vines, yield, expenses for machinery, labour, manure, and other expenses for the cultivation of the major spice pepper collected from the Department of Plantation Crops and Spices, College of Horticulture, Vellanikkara were used for the analysis. For the stochastic frontier production model to be realistic, an exact measurement of the cost of the inputs and the realized output is extremely necessary. Very few farmers keep records of the expenditure incurred on the various inputs and rarely the output realized. Vegetable crops have a short duration. So the farmer will be in a position to give realistic figures regarding the various inputs as also the outputs. As regards plantation crops, there will be a lag right from the establishment of the crop to the steady bearing stage. Therefore, it will be very difficult to trace back the exact cost, as no records would be available about the costs incurred. Therefore, a rapid estimation survey is the only feasibility wherein simultaneous estimation of the costs involved from the nursery through the various stages of growth can be observed. Since a farmer who is already having a steady-bearing crop would have incurred lesser costs through the previous stages of growth of the crop, it is most feasible to use the concept of present worth to arrive at the exact costs of previous stages of the crop. The stochastic frontier analysis was done using the present value (PV) and the present cost.

scholarly journals ESTIMASI FUNGSI PRODUKSI DAN EFISIENSI ALOKASI SUMBERDAYA PETANI KEDELAI DI LOMBOK BARAT

2006 ◽  
Vol 3 (1) ◽  
pp. 145-148 ◽  
Author(s):  
Nurhayatin Nufus
Keyword(s):  
Technical Efficiency ◽  
Production Function ◽  
Stochastic Frontier ◽  
Allocative Efficiency ◽  
Farm Management ◽  
Management Level ◽  
Stochastic Frontier Production Function ◽  
Stochastic Production ◽  
Frontier Production Function ◽  
Land Size

This research  aims  to analyses  factors  influence  on production  and  resources  allocation  of soybeans  by farmer  at  West Lombok.  Production  function  was estimated  from survey data and technical  efficiency  was used to indicate  farm management  level  through maximum  likelihood,  which  was transformed  into frontier stochastic  production  function.  The land  size,  fertilizer  (urea and  TSP), labor  and pesticide  influence  the production  of soybean  at site.  The technical efficciency  level of Soybean fann was 95,6 percent   The  usage of TSP and pesticide reached allocative efficiency while urea and seeds were al/ocative efficiency yet Key words:  technical  effICiency, allocative  effICiency, and stochastic  frontier  production  function.

scholarly journals Determinants and Differences of Grain Production Efficiency Between Main and Non-Main Producing Area in China

2019 ◽  
Vol 11 (19) ◽  
pp. 5225
Author(s):  
Furong Chen ◽  
Yifu Zhao
Keyword(s):  
Panel Data ◽  
Technical Efficiency ◽  
Production Function ◽  
Production Efficiency ◽  
Stochastic Frontier ◽  
Grain Production ◽  
Marginal Productivity ◽  
Rural Labor ◽  
Stochastic Frontier Production Function ◽  
Frontier Production Function

This paper investigated the determinants, especially labor transformation, and differences of technical efficiency between main and non-main grain-producing area in China based on a panel data from 30 provinces in the period of 2001–2017. Stochastic frontier production function was used to estimate the level of technical efficiency and the marginal productivity of different inputs. The estimated results showed that land is the most important factor to improve China’s grain output, followed by fertilizers, labor, and machinery inputs. There was a significant 4.6 percent gap of production efficiency between main and non-main producing provinces. Influence of rural labor transformation was confirmed to be positive to improve technical efficiency.

scholarly journals ANALISA TINGKAT EFISIENSI SEKTORAL DAN RESPON KEBIJAKAN EKONOMI SEKTORAL DI DAERAH

2012 ◽  
Vol 14 (3) ◽  
pp. 317-338 ◽  
Author(s):  
M. Abdul Majid Ikram ◽  
Andry Prasmuko ◽  
Donni Fajar Anugerah ◽  
Ina Nurmalia Kurniati
Keyword(s):  
Technical Efficiency ◽  
Production Function ◽  
Stochastic Frontier ◽  
Regional Level ◽  
Primary Input ◽  
Stochastic Frontier Production Function ◽  
Production Function Approach ◽  
Input Efficiency ◽  
Frontier Production Function ◽  
Sectoral Performance

This paper analyzes the contributon of primary input; capital anda labor, on sectoral performance in Indonesia. The analysis cover sall sectors both in national and regional level, and also the dynamic of input efficiency across period. Using stochastic frontier production function approach, this paper found the aggregate share of capital is 0.20 and 0.34 for labor; conforming the dominance of labor. The highest three technical efficiency is Mining sector (88.65%), Manufacture (70.47%) and Financial (65.93%), while the lowest one is Electric, Gas and Water (25.38%).Keywords: efficiency, stochastic frontier, productivity, Indonesia.JEL Classification: D24, J24, O18

scholarly journals MEASURING THE TECHNICAL EFFICIENCY OF POTATO PRDUCTION AND ITS DETERMINATS IN IRAQ (BAGHDAD PROVINCE AS CASE STUDY).

2020 ◽  
Vol 51 (6) ◽  
pp. 1634-1643
Author(s):  
Al-Hachami & et al.
Keyword(s):  
Technical Efficiency ◽  
Production Function ◽  
Stochastic Frontier ◽  
Potato Production ◽  
Cross Section Data ◽  
Technical Inefficiency ◽  
Section Data ◽  
Stochastic Frontier Production Function ◽  
Frontier Production Function

This study aimed to estimate the stochastic frontier production function and the inefficiency function and technical efficiency of potato production by using cross-section data collected from 173 potato farms that were randomly selected in Baghdad province/ Yusifiyah for production season 2016. The results showed that 90.6% of inefficiency in production was due to technical inefficiency. Also, there was a significant relationship between the variables of inefficiency function and the inefficiency of farms. The values of the parameters of the stochastic frontier production function were positive and significant for both human work hours and the amount of seeds. However, the parameter of DAP fertilizer was negative and significant. The estimation of the technical inefficiency function showed that its parameters were significant for both the local seed provider and the agricultural season (fall), while the parameters experience in growing potatoes and the number of irrigations were significant and their impact was negative on the inefficiency. The results also showed that the technical efficiency of the study sample (50%) on average. The researchers recommended the necessity of providing imported seed tubers for the increased productivity in dunum to achieve technical efficiency.

scholarly journals Technical Efficiency and Income Level of Sugarcane Farming in Pati Regency

2020 ◽  
Vol 37 (2) ◽  
pp. 95
Author(s):  
Dwi Retno Mulyanti ◽  
NFN Jamhari
Keyword(s):  
Technical Efficiency ◽  
Production Function ◽  
Stochastic Frontier ◽  
Primary Data ◽  
Efficient Manner ◽  
Farm Productivity ◽  
Stochastic Frontier Production Function ◽  
Sugarcane Farming ◽  
Seed System ◽  
Frontier Production Function

<strong>Indonesian</strong><br />Defisit produksi gula dalam negeri antara lain disebabkan oleh rendahnya produktivitas usaha tani tebu. Peningkatan efisiensi teknis dapat menjadi solusi untuk meningkatkan produktivitas dan pendapatan petani. Penelitian ini bertujuan untuk menganalisis efisiensi teknis usaha tani tebu dengan metode MLE stochastic frontier production function. Data primer diperoleh dari 61 contoh yang dipilih secara acak dari populasi petani tebu di pabrik gula Pakis Baru dan Trangkil di Kabupaten Pati pada April-Mei  2018.  Analisis menunjukkan bahwa efisiensi teknis dan pendapatan usaha tani tebu dengan sistem benih baru lebih tinggi daripada dengan sistem kepras. Penggunaan pupuk kimia sudah berlebihan. Keanggotaan kelompok tani berdampak signifikan dalam meningkatkan inefisiensi pada sistem benih baru, sedangkan keanggotaan dalam koperasi berpengaruh signifikan dalam menurunkan inefisiensi pada sistem benih baru. Jumlah anggota keluarga berpengaruh signifikan dalam mengurangi inefisiensi teknis sistem kepras.  Efisiensi teknis dan pendapatan usaha tani tebu dapat ditingkatkan melalui optimasi penggunaan sarana produksi dengan mematuhi rekomendasi pabrik mitra dan pemerintah, khususnya penggunaan pupuk sesuai dosis rekomendasi dan penggantian ratun yang sudah berumur tiga tahun dengan benih baru bermutu tinggi sesuai agroekosistem spesifik lokasi. Untuk itu, penyediaan layanan penyuluhan yang efektif merupakan syarat keharusan. <br /><br /><br /><strong>English</strong><br />Domestic sugar production deficit is partly caused low productivity of sugarcane farming. Improving technical efficiency may increase farm productivity and income. The study aims to analyze the sugarcane farming technical efficiency by using the stochastic frontier production function. The primary data were obtained from 61 randomly selected samples of sugarcane farmers population of the Pakis Baru and Trangkil sugar factories in Pati Regency in April-May 2018. The study shows that the sugarcane farming technical efficiency and income of the new sugarcane seed system is higher than the ratoon system. Chemical fertilizers have been over used.  Farmer group membership significantly increases inefficiency of the new sugarcane seed system, while the cooperative membership significantly decreases inefficiency of the new sugarcane seed system. Family member significantly decreases technical inefficiency of the ratoon system. Technical efficiency and farmers’ income can be improved by allocating production inputs in efficient manner based on the recommendations of partner Sugar Factory and Government, of in particular, fertilizer utilizations according to the recommended dosages and replacement of the already three years ratoon seeds with new high-quality seeds in accordance with the local agroecosystem condition. To this end, provision of an effective extension service is imperative.

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