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An empirical study of cereal crop production and technical efficiency of private farmers in Ethiopia: a mixed fixed-random coefficients approach

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Author Info
Andre Croppenstedt
Mulat Demeke
Abstract

In this paper we use a fixed--random coefficients regression model to analyse data for cereal growing small-scale farmers in efficiency. Results show that land size is a major constraint and only small changes in cultivated area and land quality yield relatively high increments to output. Larger farms are relatively less productive, everything else being equal. Human capital in the form of literacy and experience are found to affect productivity positively. Our findings show a high degree of farm-specific technical inefficiency. With regard to the inputs we find high degrees of input-specific technical inefficiency, especially so for labour and fertilizer. The age structure of the household, environmental factors and education are found to be weakly correlated with efficiency. Furthermore, sharecropping is found to be positively correlated with technical efficiency.

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Article provided by Taylor and Francis Journals in its journal Applied Economics.

Volume (Year): 29 (1997)
Issue (Month): 9 (September)
Pages: 1217-1226
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Handle: RePEc:taf:applec:v:29:y:1997:i:9:p:1217-1226

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Bauer, Paul W., 1990. "Recent developments in the econometric estimation of frontiers," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 39-56. [Downloadable!] (restricted)
  2. Griffiths, W.E., 1971. "Estimation Of Actual Response Coefficients In The Hildreth-Houck Random Coefficient Model," Staff Papers 14275, University of Minnesota, Department of Applied Economics. [Downloadable!]
  3. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July. [Downloadable!] (restricted)
  4. Kalirajan, K P & Obwona, M B, 1994. "A Measurement of Firm- and Input-Specific Technical and Allocative Efficiencies," Applied Economics, Taylor and Francis Journals, vol. 26(4), pages 393-98, April.
  5. Kalirajan, K P & Obwona, M B, 1994. "Frontier Production Function: The Stochastic Coefficients Approach," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 56(1), pages 87-96, February.
  6. Greene, William H., 1980. "Maximum likelihood estimation of econometric frontier functions," Journal of Econometrics, Elsevier, vol. 13(1), pages 27-56, May. [Downloadable!] (restricted)
  7. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May. [Downloadable!] (restricted)
  8. Kumbhakar, Subal C, 1988. "Estimation of Input-Specific Technical and Allocative Inefficiency in Stochastic Frontier Models," Oxford Economic Papers, Oxford University Press, vol. 40(3), pages 535-49, September. [Downloadable!] (restricted)
  9. P.A.V.B. Swamy & George S. Tavlas, 1993. "Random coefficient models: theory and applications," Finance and Economics Discussion Series 93-14, Board of Governors of the Federal Reserve System (U.S.).
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  10. Peter Schmidt, 1985. "Frontier production functions," Econometric Reviews, Taylor and Francis Journals, vol. 4(2), pages 289-328. [Downloadable!] (restricted)
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  1. Suleiman Abrar & Oliver Morrissey & Tony Rayner, 2004. "Aggregate agricultural supply response in Ethiopia: a farm-level analysis," Journal of International Development, John Wiley & Sons, Ltd., vol. 16(4), pages 605-620. [Downloadable!]
  2. Suleiman Abrar, 2003. "Estimating Supply Response in the Presence of Technical Inefficiency Using the Profit Function: An Application to Ethiopian Agriculture," Discussion Papers in Economics 03/4, Department of Economics, University of Leicester. [Downloadable!]
  3. Diao, Xinshen & Pratt, Alejandro Nin & Ghautam, Madhur & Keough, James & Chamberlin, Jordan & You, Liangszi & Puetz, Detlev & Resnick, Danielle & Yu, Bingxin, 2005. "Growth options and poverty reduction in Ethiopia," DSGD discussion papers 20, International Food Policy Research Institute (IFPRI). [Downloadable!]
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