Spatial stochastic frontier models: accounting for unobserved local determinants of inefficiency

Schmidt, Alexandra M.; Moreira, Ajax Reynaldo Bello; Helfand, Steven M.; Fonseca, Thaís C. O.

doi:10.1007/s11123-008-0122-6

Cited by 49 publications

(39 citation statements)

References 28 publications

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“…Furthermore, Druska and Horrace () extended the estimator presented by Kelejian and Prucha () and applied it to a stochastic frontier model for the panel data of 171 Indonesian rice farmers. Another innovation in this area was the adoption of the Bayesian paradigm in the estimation procedure (Schmidt et al., ). With this approach, Koop and Steel () and Kumbhakar and Tsionas () investigated geographical variations of outputs and farm productivity for 370 municipalities in Brazil.…”

Section: Introductionmentioning

confidence: 99%

Spatial dependency and technical efficiency: an application of a Bayesian stochastic frontier model to irrigated and rainfed rice farmers in Bohol, Philippines

Pede

Areal

Singbo

et al. 2018

Agricultural Economics

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We investigated the role of spatial dependency in the technical efficiency estimates of rice farmers using panel data from the Central Visayan island of Bohol in the Philippines. Household-level data were collected from irrigated and rainfed agro-ecosystems. In each ecosystem, the geographical information on residential and farm-plot neighborhood structures was recorded to compare household-level spatial dependency among four types of neighborhoods. A Bayesian stochastic frontier approach that integrates spatial dependency was used to address the effects of neighborhood structures on farmers' performance. Incorporating the spatial dimension into the neighborhood structures allowed for identification of the relationships between spatial dependency and technical efficiency through comparison with nonspatial models. The neighborhood structure at the residence and plot levels were defined with a spatial weight matrix where cut-off distances ranged from 100 to 1,000 m. We found that spatial dependency exists at the residential and plot levels and is stronger for irrigated farms than rainfed farms. We also found that technical inefficiency levels decrease as spatial effects are more taken into account. Because the spatial effects increase with a shorter network distance, the decreasing technical inefficiency implies that the unobserved inefficiencies can be explained better by considering small networks of relatively close farmers over large networks of distant farmers. JEL classifications: C01, C11, C23, C51, D24

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Section: Introductionmentioning

confidence: 99%

Spatial dependency and technical efficiency: an application of a Bayesian stochastic frontier model to irrigated and rainfed rice farmers in Bohol, Philippines

Pede

Areal

Singbo

et al. 2018

Agricultural Economics

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show abstract

“…They include the spatial term as a latent component in the one-sided disturbance term. Schmidt and Moreira (2009) supersede previous literature integrating the analysed spatial pattern into the very model definition.…”

Section: Introductionmentioning

confidence: 81%

“…Recent studies (Helfand and Levine 2004;Angeriz et al 2006, among others) have applied this methodology and taken it one step further, by first finding the traditional Malmquist Productivity Index and its components, and then contrasting the existence of proximity effects through spatial econometric techniques. However, according to Schmidt and Moreira (2009) this double procedure does not take into account the uncertainty in the estimation of efficiencies. Taking this limitation into account, these authors propose an alternative way of introducing spatial effects in a stochastic frontier model.…”

Section: Introductionmentioning

confidence: 99%

A spatial efficiency index proposal: an empirical application to SMEs productivity

Maté-Sánchez-Val

Guijarro

2010

Ann Reg Sci

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“…Recent innovations in accounting for spatial heterogeneity and spillovers in TFP studies [67] used Bayesian procedures to estimate a stochastic frontier model with a latent spatial structure to control for spatial variations in outputs of Brazilian farmers. They specified independent normal or conditional autoregressive priors for such spatial effects.…”

Section: Estimating Yield Functionsmentioning

confidence: 99%

Spatial Econometric Analysis: Potential Contribution to the Economic Analysis of Smallholder Development

Villano¹,

Fleming²,

Moss³

2015

Causal Inference in Econometrics

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The stars appear to be aligned for a sustained effort to improve information to rural development policy makers about the impact space has on the opportunities for development of the ubiquitous smallholder households in rural areas of Southeast Asian countries. The influences of spatially heterogeneous resource constraints on farming activities, distance to markets and institutions, and spatial interaction among smallholders can now be better accounted for in modelling work as a result of improvements in analytical methodologies, the growing availability of so-called 'big data' and access to spatially defined information in panel data sets. The scope for taking advantage of these advances is demonstrated with two examples from a Southeast Asian country, the Philippines: spillovers and neighbourhood effects in impact studies and the development of sophisticated spatial stochastic frontier models to measure and decompose productivity growth on smallholdings.

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Spatial stochastic frontier models: accounting for unobserved local determinants of inefficiency

Abstract: Bayesian paradigm, Conditional autoregressive priors, Monte Carlo Markov chain, Stochastic frontier models, Spatial econometrics, C01, C11,

Cited by 49 publications

References 28 publications

Spatial dependency and technical efficiency: an application of a Bayesian stochastic frontier model to irrigated and rainfed rice farmers in Bohol, Philippines

Spatial dependency and technical efficiency: an application of a Bayesian stochastic frontier model to irrigated and rainfed rice farmers in Bohol, Philippines

A spatial efficiency index proposal: an empirical application to SMEs productivity

Spatial Econometric Analysis: Potential Contribution to the Economic Analysis of Smallholder Development

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