The economic efficiency of 68 Ecuadorian dairy farms is investigated by estimating technical, allocative, and scale efficiencies for each using stochastic frontier methodology. Empirical results show that technical inefficiency exists for all of these farms – ranging from 11.8% to 12.8%....

This paper examines farm-level efficiency of U.S. dairy farmers by estimating their technical and allocative inefficiencies. The authors allow technical inefficiency to be a function of some farm-specific characteristics. The model extends the existing stochastic frontier methodology in which...

This paper considers the estimation of frontier production functions in panel data models. It proposes a multi-stage method to obtain estimates of (1) the parameters of a flexible input requirement function and (2) technical inefficiency decomposed into time-invariant (firm-specific),...

This paper deals with modeling total factor productivity (TFP) growth in a flexible manner using panel data. Several competing parametric models are used to explore whether there are any similarities in the estimates of TFP growth and technical change among these models. Using a primal approach,...

The estimation of technical change in panel data models is considered using two competing models: the time trend model and the general index model. The authors' measure of technical change in both models is based on the input requirement function. Technical change is further decomposed into pure...

This paper generalizes a globally concave and flexible cost function to accommodate allocative distortions. These distortions are introduced through shadow prices and are specified as functions of regressors that make distortion factors firm, input, and time specific. The estimated model, based...

This paper analyzes the effects of returns to scale, farm-size, technical, allocative, and scale inefficiencies on the profitability of Utah dairy farms. It derives the conditions necessary to compare the profitability of farms within and between different size classifications as small, medium,...

This paper analyzes the relationship between deregulation and total factor productivity (TFP) growth in the Indian banking industry using a generalized shadow cost function approach. TFP growth is decomposed into a technological change, a scale, and a miscellaneous component. A disaggregated...