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Farm-heterogeneity and persistent and transient productive efficiencies in Ethiopia’s smallholder cereal farming

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  • Berisso Oumer

    (Department of Economics, School of Humanities and Social Sciences, Adama Science and Technology University, P.O. Box 1888, Nazareth, Oromia, Ethiopia)

  • Heshmati Almas

    (Department of Economics, Jönköping International Business School (JIBS), Jönköping University, Room B5017, P.O. Box 1026, SE-551 11Jönköping, Sweden)

Abstract

This paper does an empirical comparison of time-invariant and time-varying technical inefficiency measures obtained from an econometric estimation of different panel data stochastic production frontier models. It estimates four panel data specifications of frontier models widely used in empirical applications using a panel dataset from the Ethiopian cereal farming sector. The empirical results show that estimates of both the magnitude and the individual farms’ rankings of persistent and transient productive efficiencies differ considerably across models and based on their agro-ecological zones location. The results further show that the cereal growing farms experience much more transient inefficiency as compared to persistent inefficiency.

Suggested Citation

  • Berisso Oumer & Heshmati Almas, 2020. "Farm-heterogeneity and persistent and transient productive efficiencies in Ethiopia’s smallholder cereal farming," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 11(1), pages 1-23, January.
    • Handle: RePEc:vrs:izajdm:v:11:y:2020:i:1:p:23:n:19
    DOI: 10.2478/izajodm-2020-0018
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Stochastic frontier; heterogeneity; persistent and transient efficiency; cereal farming;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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