A shadow-price profit frontier model is developed to examine production efficiency of Chinese rural households in farming operations. The model incorporates price distortions resulting from imperfect market conditions and socioeconomic and institutional constraints, but retains the advantages of...

A shadow-price profit frontier model is developed to examine production efficiency of Chinese farm households. The model incorporates price distortions but retains the advantages of stochastic frontier properties. The shadow prices and shadow profit are derived through a behavioral profit...