This paper aims to estimate the technical efficiency of the agricultural sector in a group of Mediterranean countries involved in the process of global market liberalization. The analysis applies the stochastic production frontier model to a set of six different crop products. For each product,...

Technical efficiency, which is a measure of production performance of a firm, has been estimated generally using a primal production frontier. Since the estimation is carried out for a given level of inputs, the efficiency measure includes the effect of 'input-mix' or 'input-allocation' and...

Agricultural policymakers place increasing emphasis on developing efficiency measures for organic producers in order to evaluate regulatory strategies and evolving organic market conditions. We develop technical efficiency measures for U.S. organic farmers using a stochastic production frontier....

The aim of the article is to create a theoretical support for capital yield determination on the basement of neoclassical microeconomics. The yields of an industrial capital can be used as a discount factor in determination of the value of a firm by discounted cash flow methods. Following the...

Economic growth has failed to be sufficiently inclusive, particularly after the mid-nineties. Although agriculture is still a single major sector providing livelihood to more than 60 percent of the population, it has lost its growth momentum and the share has been declining continuously for a...

A theoretical support for capital yields determination is presented based on the neo-classical microeconomics assumptions. Starting by relevant production function of a sector and having in mind an optimising behaviour of firms, we propose to measure the capital yields by the help of a minimum...

Cornwell, Schmidt, and Sickles (1990) and Kumbhakar (1990), among others, developed stochasticfrontier production models which allow firm specific inefficiency levels to change over time. These studies assumed arbitrary restrictions on the short-run dynamics of efficiency levels which have...

Coal-based thermal power stations are the leaders in electricity generation in India. This study employs the stochastic frontier production function methodology for panel data to measure the technical efficiency (TE) of coal-based thermal power plants in India during 1994-1995 to 2001-2002....

Traditional panel stochastic frontier studies on privatization of Chinese State-owned firms face a major challenge, namely, the endogeneity problem. The endogeneity problem is present because decision-making process of privatization in China is very likely influenced by some unobserved...