In production economics, one of the most interesting questions is that of the causal relationship between technical efficiency and allocative efficiency. This as yet remains a puzzle without a unique answer. There are a few theoretical analyses conceptualizing the relationship, but consensus has...

The objective in this paper is to suggest an alternative method of estimating farmer-specific and input-specific allocative efficiency, taking into account the influence of the methods of application of inputs on output. Further, we compare the proposed measures with those calculated based on...

In the literature, technical efficiency is measured as the ratio of observed output to potential output. Although there is no a priori theoretical reasoning, in the stochastic framework of measuring technical efficiency, the potential output is defined as a neutral shift from the observed...

This study investigates whether China has achieved its potential in grain production fully with the existing technology. A stochastic varying coefficients frontier approach is applied on recent household survey data of 1000 grain farmers covering the periods 1993-95. The results indicate that,...

Our objective in this paper is to explain a method to decompose the sources of total factor productivity (TFP) growth into technological progress and changes in technical efficiency within the framework of the varying coefficients frontier production function. An empirical application is...