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Model Selection in Stochastic Frontier Analysis: Maize Production in Kenya

  • Liu, Yanyan

We demonstrate how a recently developed model selection procedure can be used to choose among competing stochastic frontier models where inefficiency depends on firm characteristics. We provide evidence on the power of this procedure. Moreover, we examine the effects of model choice on estimation results. We find that different models can lead to rather different magnitudes of the partial effects of the exogenous factors. However, because the model selection procedure gives an unambiguous choice of best model, and because bootstrapping indicates that the procedure is reliable, we conclude that it does not matter whether other models give different results.

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File URL: http://purl.umn.edu/21281
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Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2006 Annual meeting, July 23-26, Long Beach, CA with number 21281.

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Date of creation: 2006
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Handle: RePEc:ags:aaea06:21281
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  7. Lamb, Russell L., 2003. "Inverse productivity: land quality, labor markets, and measurement error," Journal of Development Economics, Elsevier, vol. 71(1), pages 71-95, June.
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  14. Nyoro, James K. & Kirimi, Lilian & Jayne, Thomas S., 2004. "Competitiveness of Kenyan and Ugandan Maize Production: Challenges for the Future," Food Security Collaborative Working Papers 55158, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  15. Alvarez, Antonio & Arias, Carlos, 2004. "Technical efficiency and farm size: a conditional analysis," Agricultural Economics, Blackwell, vol. 30(3), pages 241-250, May.
  16. Hazarika, Gautam & Alwang, Jeffrey, 2003. "Access to credit, plot size and cost inefficiency among smallholder tobacco cultivators in Malawi," Agricultural Economics, Blackwell, vol. 29(1), pages 99-109, July.
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  22. Kumbhakar, Subal C & Biswas, Basudeb & Bailey, DeeVon, 1989. "A Study of Economic Efficiency of Utah Dairy Farmers: A System Approach," The Review of Economics and Statistics, MIT Press, vol. 71(4), pages 595-604, November.
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