Estimation of Technical Efficiency on Wheat Farms in Northern India - A Panel Data Analysis
In this paper an attempt has been made to estimate farm level technical inefficiency on wheat farms in Haryana State, India. This paper applies stochastic frontier production function for wheat farmers using unbalanced panel data for three years from 1996-97 to 1998-99. The farm level panel data was collected from 200 farmers spread over in each year forming 592 total observations. The frontier function involves inputs such as human labour, fertilizers, irrigation expenditure, seeds, land area and capital expenditure. All the estimates have expected signs. The results showed that the null hypothesis of absence of technical inefficiency effects was rejected indicating that the traditional average response function was not an adequate representation of the data given the specification of stochastic frontier model. The farm specific technical efficiencies estimated were observed to be time varying. The technical efficiency showed wide variation across sample farms ranging from 0.4346 to 0.9598 in the 3rd year of the study period. The mean technical efficiency was found to deteriorate through the years in wheat production. It declined from 0.9172 in 1st year to 0.9025 in 3rd year. The mean technical efficiency indicates that the realized output could be increased by about 10 percent without any additional resources. More than 2/3rd of total sample farmers had technical efficiency above 0.90. Various socioeconomic and technological factors may be responsible for the observed inefficiency and further rise in inefficiency in wheat production. Because of lack of information/data on these factors, this aspect has not been studied in the present paper, which could have provided an insight into the factors for policy framework.
|Date of creation:||2003|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.ifmaonline.org/|
More information through EDIRC
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.:
- Battese, George E., 1992. "Frontier production functions and technical efficiency: a survey of empirical applications in agricultural economics," Agricultural Economics, Blackwell, vol. 7(3-4), pages 185-208, October.
- Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 233-238, August.
When requesting a correction, please mention this item's handle: RePEc:ags:ifma03:24305. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.