Stochastic Frontier Analysis Using Stata

Belotti, Federico; Daidone, Silvio; Ilardi, Giuseppe; Atella, Vincenzo

doi:10.2139/ssrn.2145803

Cited by 77 publications

(71 citation statements)

References 39 publications

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“…A 1 percent increase in consumer density will decrease total cost by approximately 0.3 percent at the sample median. This result suggests Belotti et al (2012).…”

Section: Resultsmentioning

confidence: 74%

The impact of ownership unbundling on cost efficiency: Empirical evidence from the New Zealand electricity distribution sector

Filippini

Wetzel

2014

Energy Economics

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“…A 1 percent increase in consumer density will decrease total cost by approximately 0.3 percent at the sample median. This result suggests Belotti et al (2012).…”

Section: Resultsmentioning

confidence: 74%

The impact of ownership unbundling on cost efficiency: Empirical evidence from the New Zealand electricity distribution sector

Filippini

Wetzel

2014

Energy Economics

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“…The log-likelihood function in Equation 6 can then be estimated using Stata (Belotti et al, 2013). Once the parameters are estimated, the technical efficiency (TE) of individual household is given as .…”

Section: Model Specificationmentioning

confidence: 99%

Sources of technical inefficiency of smallholder farmers in milk production in Ethiopia

Adane¹,

Shiferaw²,

Gebremedhin³

2016

Afr. J. Agric. Res.

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This paper estimates technical inefficiency in milk production of smallholder dairy farmers in the highlands of Ethiopia and identified factors associated with the observed inefficiency using a stochastic frontier production function approach. The analysis utilizes a cross-section data collected from 1,277 farm households. The result indicates a mean technical efficiency of 55%, suggesting a sizeable technical inefficiency in milk production. The result further shows that household wealth, education level and access to markets as well as institutions are the main drivers of technical efficiency in dairy production. Evidently, by improving smallholder access to market and institutions as well as investing on adult education can bring considerable gain in milk production.

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“…The translog function has a more flexible functional form than the Cobb-Douglas, imposing no restrictions on returns to scale and input substitution, but it is susceptible to multicollinearity. Likewise, because many more parameters are required than in an equivalent Cobb-Douglas model, larger data sets are required to avoid problems associated with degrees of freedom.Given the distributional assumption required for the identification of the efficiency term, the parameters of stochastic frontier production functions are usually estimated by ML methods (Belotti et al, 2012). In fact, they can also be estimated using corrected ordinary least squares (COLS).…”

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confidence: 99%

Assessing the Efficiency of Sweet Potato Producers in the Southern Region of Ethiopia

Jote

Feleke

Tufa³

et al. 2017

Ex. Agric.

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SUMMARYApplying stochastic frontier Cobb-Douglas production function, the study assessed the efficiency of sweet potato (Ipomoea batatas) producers in the Southern region of Ethiopia. The study revealed the existence of fairly large technical inefficiency in sweet potato production. The technical efficiency ranged from 12.6 to 93.7%, with more than half of the producers above the mean efficiency level (66.1%). This suggests that there is room for output gains through technical efficiency improvement. If the average producers in the study region are to achieve the technical efficiency level of the most efficient producer in the sample (93.7%), they can realize nearly 30% output gains. The analysis of allocative efficiency also revealed that sweet potato producers were producing sweet potato with sub-optimal utilization of production inputs, suggesting that potential for output gains remains to be exploited through reconfiguration of the existing resource use. They can make more value out of their sweet potato production by reconfiguring their current utilization of production inputs in favour of more land and manure but less seed rate. Furthermore, age and education are important determinants of the efficiency of sweet potato production. In view of these findings, it is advisable to put in place appropriate extension intervention programmes that enable sweet potato producers to exploit the potential gains in sweet potato output through technical and allocative efficiency improvement. I N T RO D U C T I O NThe Southern region of Ethiopia is endowed with suitable arable land and favourable climate well suited to the production of annual and perennial crops. However, it is also the most densely populated part of the country, making horizontal expansion of arable land an unsustainable source of output growth. The importance of agricultural technologies cannot, therefore, be emphasized enough for the region. In fact, there is no more effective driver of agricultural productivity than the use of modern agricultural technologies such as improved seeds and chemical fertilizers. However, in the region, not every crop is cultivated with the application of such inputs. For example, root and tuber crops such as sweet potato are usually cultivated with little or no application of such inputs. The vast majority of sweet potato producers in the region are producing sweet potato using mainly local varieties, family labour ¶Corresponding author. and manure. As a result, they have much lower yield of 6 to 8 Mg ha −1 , although they can potentially provide over 50 to 60 Mg ha −1 (Markos and Loha, 2016). The International Potato Centre reports that average yields of sweet potatoes in subSaharan Africa are 10-times lower among smallholders than those observed among commercial producers (International Potato Centre, 2016).The challenge of increasing sweet potato output in the Southern region of Ethiopia is compounded by the fact that there is no much land left to bring under cultivation because of the high population density. In the ...

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Stochastic Frontier Analysis Using Stata

Cited by 77 publications

References 39 publications

The impact of ownership unbundling on cost efficiency: Empirical evidence from the New Zealand electricity distribution sector

The impact of ownership unbundling on cost efficiency: Empirical evidence from the New Zealand electricity distribution sector

Sources of technical inefficiency of smallholder farmers in milk production in Ethiopia

Assessing the Efficiency of Sweet Potato Producers in the Southern Region of Ethiopia

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