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The paper uses the concept of metafrontier functions to study regional differences in production technologies. The paper has three components. The first deals with the analytical framework necessary for the definition of metafrontier functions. The second component studies the properties of the...
Persistent link: https://www.econbiz.de/10005731045
Farm-level data for the 1988/89 agricultural year from a sample survey of wheat farmers in Eastern Free State, are analysed in this paper. Stochastic frontier production functions are estimated, in which the technical inefficiency effects are modelled in terms of the size of the farming...
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Two models of technical inefficiency with a stochastic production frontier are considered in this paper. In the first model, it is assumed that the frontier itself does not vary with time, while in the second, the frontier is allowed to move. These models are applied to four years of panel data...
Persistent link: https://www.econbiz.de/10005838584
The agricultural production of Indian farmers is investigated using a stochastic frontier production function which incorporates a model for the technical inefficiency effects. Farm-level data from the International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) are used. Variables...
Persistent link: https://www.econbiz.de/10005805717
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Agglomeration externalities can have positive effects on both the production possibility frontier and technical inefficiency of firms. Increased levels of localized knowledge spillovers and substitution of internal inputs with external inputs may lead to fewer errors in decision-making and...
Persistent link: https://www.econbiz.de/10005193270
This paper considers a statistical model for a production frontier that is consistent with the traditional (nonstochastic) definition of a production function given in microeconomic theory. Limiting cases of the model are the familiar average production function and an envelope production...
Persistent link: https://www.econbiz.de/10005493312