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Estimation of stochastic frontier production functions with time‐varying parameters and technical efficiencies using panel data from Indian villages

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  • G.E. Battese
  • G.A. Tessema

Abstract

A stochastic frontier production function with time‐varying technical efficiencies is estimated using panel data from ICRISAT's Village Level Studies in three Indian villages. Given the specifications of a linearized version of a Cobb–Douglas stochastic frontier production function with coefficients which are a linear function of time, the hypothesis that the traditional response function is an adequate representation of the data is accepted for only one of the three villages. The hypothesis of time‐invariant technical inefficiencies is not rejected for one of the two villages for which significant technical inefficiencies exist. The hypothesis of time‐invariant elasticities of the input variables is rejected for two of the three villages. Further, the hypothesis that hired and family labour are equally productive is accepted in only one of the three villages. The technical efficiencies of individual farms exhibited considerable variation in the two villages with either time‐invariant or time‐varying technical efficiencies.

Suggested Citation

  • G.E. Battese & G.A. Tessema, 1993. "Estimation of stochastic frontier production functions with time‐varying parameters and technical efficiencies using panel data from Indian villages," Agricultural Economics, International Association of Agricultural Economists, vol. 9(4), pages 313-333, December.
    • Handle: RePEc:bla:agecon:v:9:y:1993:i:4:p:313-333
    DOI: 10.1111/j.1574-0862.1993.tb00277.x
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    Cited by:

    1. Anastassios Karaganis & Antonios Tassoulis, 2006. "Spatial Efficiency Analysis of Arable Crops in Greece," ERSA conference papers ersa06p616, European Regional Science Association.
    2. Ajibefun, Igbekele A., 2006. "Linking Socio-Economic and Policy Variables to Technical Efficiency of Traditional Agricultural Production: Empirical Evidence from Nigeria," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25535, International Association of Agricultural Economists.
    3. Coelli, Tim J., 1995. "Recent Developments In Frontier Modelling And Efficiency Measurement," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 39(3), pages 1-27, December.
    4. Alexander Bilson Darku & Stavroula Malla & Kien C. Tran, 2016. "Sources and Measurement of Agricultural Productivity and Efficiency in Canadian Provinces: Crops and Livestock," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 64(1), pages 49-70, March.
    5. Rajendran, Srinivasulu, 2014. "Technical Efficiency of Fruit and Vegetable Producers in Tamil Nadu, India: A Stochastic Frontier Approach," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 11(1), pages 1-17, June.
    6. Anthony Baffoe‐Bonnie & Genti Kostandini, 2019. "Annual and cropping season environmental production conditions effects on smallholder technical efficiency in sub‐Saharan Africa: Evidence from Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 50(6), pages 779-791, November.
    7. Dhungana, Basanta R. & Nuthall, Peter L. & Nartea, Gilbert V., 2004. "Measuring the economic inefficiency of Nepalese rice farms using data envelopment analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(2), pages 1-23.
    8. Tanira T. Kingi & Tom F. Kompas, 2005. "Communal Land Ownership and Agricultural Development: Overcoming Technical Efficiency Constraints Among Fiji’s Indigenous Sugercane Growers," International and Development Economics Working Papers idec05-11, International and Development Economics.
    9. Boris Bravo-Ureta & Daniel Solís & Víctor Moreira López & José Maripani & Abdourahmane Thiam & Teodoro Rivas, 2007. "Technical efficiency in farming: a meta-regression analysis," Journal of Productivity Analysis, Springer, vol. 27(1), pages 57-72, February.
    10. Sombat Singkharat & Aree Wiboonpongse & Yaovarate Chaovanapoonphol, 2012. "Efficiency of improved peeled longan drying technology in Thailand: A metafrontier approach," The Empirical Econometrics and Quantitative Economics Letters, Faculty of Economics, Chiang Mai University, vol. 1(3), pages 19-32, September.
    11. repec:mth:jas888:v:7:y:2019:i:1:p:115-127 is not listed on IDEAS
    12. Khan Claudette Mengui & Saera Oh & Sang Hyeon Lee, 2019. "The Technical Efficiency of Smallholder Irish Potato Producers in Santa Subdivision, Cameroon," Agriculture, MDPI, vol. 9(12), pages 1-13, December.
    13. repec:dau:papers:123456789/7315 is not listed on IDEAS
    14. Arsalanbod, Mohammadreza, 2005. "The Efficiency of Farmers in North-West of Iran," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 60(1), pages 1-7.
    15. Adenuga, A.H. & Muhammad-Lawal, A. & Rotimi, O.A., 2013. "Economics and Technical Efficiency of Dry Season Tomato Production in Selected Areas in Kwara State, Nigeria," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 5(1), pages 1-9, March.
    16. George E. Battese & Sohail J. Malik & Sumiter Broca, 1993. "Production Functions for Wheat Farmers in Selected Districts of Pakistan: An Application of a Stochastic Frontier Production Function with Time-varying Inefficiency Effects," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 32(3), pages 233-268.
    17. Mellah, Thuraya & Ben Amor, Tawfik, 2016. "Performance of the Tunisian Water Utility: An input-distance function approach," Utilities Policy, Elsevier, vol. 38(C), pages 18-32.
    18. Djemaï, Elodie, 2009. "How do Roads Spread AIDS in Africa? A Critique of the Received Policy Wisdom," TSE Working Papers 09-120, Toulouse School of Economics (TSE).
    19. Zhilu Sun & Xiande Li, 2021. "Technical Efficiency of Chemical Fertilizer Use and Its Influencing Factors in China’s Rice Production," Sustainability, MDPI, vol. 13(3), pages 1-18, January.
    20. Cassiano Bragagnolo & Humberto F. S. Spolador & Geraldo Sant’Ana de Camargo Barros, 2010. "Regional Brazilian Agriculture TFP Analysis: A Stochastic Frontier Analysis Approach," Economia, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 11(4), pages 217-242.
    21. Thiam, Abdourahmane & Bravo-Ureta, Boris E. & Rivas, Teodoro E., 2001. "Technical efficiency in developing country agriculture: a meta-analysis," Agricultural Economics, Blackwell, vol. 25(2-3), pages 235-243, September.

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