CoChat
Sign Up
Cited by 769Efficiency Analysis Using DEAAgricultural economics and policiesEconomics of Agriculture and Food Markets

RECENT DEVELOPMENTS IN FRONTIER MODELLING AND EFFICIENCY MEASUREMENT

Open access
Coelli, Tim J.·1995·Australian Journal of Agricultural Economics
DOI 10.1111/j.1467-8489.1995.tb00552.x
Open this paper in CoChat — free accountOpen PDF

Abstract

In this paper recent developments in the estimation of frontier functions and the measurement of efficiency are surveyed, and the potential applicability of these methods in agricultural economics is discussed. Frontier production, cost and profit functions are discussed, along with the construction of technical, allocative, scale and overall efficiency measures relative to these estimated frontiers. The two primary methods of frontier estimation, econometric and linear programming, are compared. A survey of recent applications of frontier methods in agriculture is also provided.

The claims and statistics of this paper haven’t been checked yet.

Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.

A few free checks a day · papers already verified open instantly · results are public

Integrity signals

Registry

Crossref · 10.1111/j.1467-8489.1995.tb00552.x

Cites

1 of 1 references verified0 citation errors · 0 not checkable

Statistics

Claims the paper makes

The claims and statistics of this paper haven’t been checked yet.

Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.

A few free checks a day · papers already verified open instantly · results are public

Claims other papers make about this one

Each is checked against this paper’s own text: does it say what the citing paper says it does?

  • The primal approach may yield biased and inconsistent parameter estimates if the standard behavioural postulates of either profit maximisation or cost minimisation are valid.

    “A major problem with the primal approach is that parameter estimates may be biased and inconsistent if the standard behavioural postulates of either profit maximisation or cost minimisation are valid (Coelli, 1995).”

    From Technical efficiency in developing country agriculture: a meta‐analysis (2001) · cites this paper as Coelli, 1995

Self-check

Percentages, sums and reported differences re-computed from the paper’s own numbers.

The self-check needs the paper’s full text.

Cites

Flagged first, then by citations

Research works printed but not linked: 72

  1. Afriat, S. N. (1 972), 'Efficiency Estimation of Production Functions', International Economic Review 13,568-598.
  2. Aigner, D. J. and S. F. Chu (1968), 'On Estimating the Industry Production Function', American Economic Review 58,826-839.
  3. Aigner, D. J., C. A. K Lovell, and P. Schmidt (1977), 'Formulation and Estimation of Stochastic Frontier Production Function Models', Journal of Econometrics 6,2 1-37.
  4. Ali, A. I. and L. M. Seiford (1993), 'The Mathematical Programming Approach to Efficiency Analysis', in Fried, H.O., C.A.K. Lovell and S.S. Schmidt (eds), The Measurement of Productive EfJiciency, Oxford University Press, New York, 120- 159.
  5. Ali, M. and M. A. Chaudhry (1990), 'Inter-regional Farm Efficiency in Pakistan's Punjab: A Frontier Production Function Study', Journal of Agricultural Economics
  6. Ali, M. and J. C. Flinn (1989), 'Profit Efficiency Among Basmati Rice Producers in Pakistan Punjab', American Journal of Agricultural Economics 71, 303-3 10.
  7. Aly, H. Y., K. Belbase, R. Grabowski and S. Kraft (1987), 'The Technical Efficiency of Illinios Grain Farms: An Application of a Ray-Homothetic Production Function ', Southern Journal of Agricultural Economics 19,69-78.
  8. Bailey, D. V., B. Biswas, S. C . Kumbhakar and B. K. Schulthies (1989), 'An Analysis of Technical, Allocative, and Scale Inefficiency: The Case of Ecuadorian Dairy Farms', Western Journal of Agricultural Economics 14, 30-37.
  9. Battese, G . E. (1 992), 'Frontier Production Functions and Technical Efficiency: A Survey of Empirical Applications in Agricultural Economics', Agricultural Econom- Battese, G . E. and T. J. Coelli (1988), 'Prediction of Firm-Level Technical Efficiencies With a Generalised Frontier Production Function and Panel Data', Journal of Econometrics 38, 387-399.
  10. Battese, G. E. and T. J. Coelli (19921, 'Frontier Production Functions, Technical Efficiency and Panel Data: With Application to Paddy Farmers in India', Journal of Productivity Analysis 3, 153-169.
  11. Battese, G. E., T. J. Coelli and T. .C. Colby (1989), 'Estimation of Frontier Production Functions and the Efficiencies of Indian Farms Using Panel Data From ICRISAT's Village Level Studies', Journal of Quantitative Economics 5,327-348.
  12. Battese, G . E. and G . S. Corra (1977), 'Estimation of a Production Frontier Model: With Application to the Pastoral Zone of Eastern Australia', Australian Journal ofAgri- cultural Economics 21, 169-179.
  13. Battese, G . E., S. J. Malik and S. 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', Pakistan Development Review 32,
  14. 14678489a, 1995, 3, · DOI
  15. Bauer, P. W. (1990), 'Recent Developments in the Econometric Estimation of Frontiers', Journal of Econometrics 46,39-56.
  16. Belbase, K. and R. Grabowski (1985), 'Technical Efficiency in Nepalese Agriculture', Journal of Developing Areas 19,515-525.
  17. Bravo-Ureta, B. E. (1 986), 'Technical Efficiency Measures for Dairy Farms Based on a Probabilistic Frontier Function Model', Canadian Journal of Agricultural Eco- nomics 34,399-415.
  18. Bravo-Ureta, B. E. and A.E. Pinheiro (1993), 'Efficiency Analysis of Developing Country Agriculture: A Review of the Frontier Function Literature', Agricultural and Resource Economics Review 22,88-101.
  19. Bravo-Ureta, B. E. and L. Rieger (1990), 'Alternative Production Frontier Methodolo- gies and Dairy Farm Efficiencies', Journal of Agricultural Economics 41,215-226. 27-37.
  20. Bravo-Ureta, B. E. and t. Rieger (I99 I), 'Dairy Farm Efficiency Measurement Using Stochastic Frontiers and Neoclassical Duality', American Journal of Agricultural Economics 73,421-428.
  21. Chames, A., W. W. Cooper, B. Golany, L. Seiford and J. Stutz (1985), 'Foundations of Data Envelopment Analysis for Pareto-Koopmans Efficient Empirical Production Functions', Journal of Econometrics 30,91-107.
  22. Charnes, A,, W. W. Cooper and E. Rhodes (1978), 'Measuring the Efficiency of Decision Making Units', European Journal of Operations Research 2,429-444.
  23. Chavas, J. and M. AIiber (1993), 'An Analysis of Economic Efficiency in Agriculture: A Nonparametric Approach', Journal of Agricultural and Resource Economics 18,
  24. CoeHi, T.J. ( I 992), 'A Computer Program for Frontier Production Function Estimation: FRONTIER, Version 2.0', Economics Letters 39, 29-32.
  25. Coelli, T. J. (1993, 'Estimators and Hypothesis Tests for a Stochastic Frontier Function: A Monte Carlo Analysis', Journal of Productiviq Analysis, 6, 247-268.
  26. Cornwell, C., P. Schmidt and R. C. Sickles (1990), 'Production Frontiers With Cross- sectional and Time-series Variation in Efficiency Levels', .Journal of Econometrics
  27. Dawson, P, J. (1983, 'Measuring Technical Efficiency From Production Functions: Some Further Estimates', Journal ofAgriculturu1 Economics 36,3 1-40.
  28. Dawson, P. J. and J. Lingard (1989), 'Measuring Farm Efficiency Over Time on Philippine Rice Farms', Journal of Agricultural Economics 40, 168-177.
  29. Dawson, P. J., J. Lingard and C. H. Woodford (1991), 'A Generalised Measure of Farm-Specific Technical Efficiency', American Journal of Agricultural Economics 1-16. 46, 185-200. 73, 1098-1104.
  30. 14678489a, 1995, 3, · DOI
  31. Ekanayake, S. A. B. (1987), 'Location Specificity, Settler Type and Productive Effi- ciency: A Study of the Mahaweli Project in Sri Lanka', Journal of Development Studies 23,509-521.
  32. Ekanayake, S . A. B. and S. K. Jayasuriya (1987), 'Measurement of Farm-Specific Technical Efficiency: A Comparison of Methods', Journal of Agricultural Econom- ics 38, 115-122.
  33. Fare, R., S. Grosskopf, M. Norris and Z. Zhang (1994), 'Productivity Growth, Technical Progress, and Efficiency Changes in Industrialised Countries', American Economic Review 84,66-83.
  34. Fare, R. and C . A. K. Lovell (1978), 'Measuring the Technical Efficiency of Production', Journal of Economic Theory 19, 150-162.
  35. Farrell, M. J. (1957), 'The Measurement of Productive Efficiency', Journal of the Royul Statistical Society, A C X X , Part 3,253-290.
  36. Fernier, G.D. and C. A. K. Lovell (1990), 'Measuring Cost Efficiency in Banking: Econometric and Linear Programming Evidence', Journal of Econometrics 46,
  37. Forsund, F. R., C . A. K. Lovell and P. Schmidt (1 980), 'A Survey of Frontier Production Functions and of their Relationship to Efficiency Measurement', Journal of Econo- metrics 13,5-25.
  38. Forsund, F. R. and L. Hjalmarsson (1 979), 'Generalised Farrell Measures of Efficiency: An Application to Milk Processing in Swedish Dairy Plants', Economic Journal 89,
  39. Greene, W. H. (1980a), 'Maximum Likelihood Estimation of Econometric Frontier Functions', Journal of Econometrics 13, 27-56.
  40. Greene, W. H. (1980b), 'On the Estimation of a Flexible Frontier Production Model', Journal of Econometrics 13, 101 -1 16.
  41. Greene, W. H. (1990), 'A Gamma-distributed Stochastic Frontier Model', Journal of Economerrics 46, 14 1 -164.
  42. Greene, W. H. (1993), 'The Econometric Approach to Efficiency Analysis', in H. 0. Fried, C . A. K. Lovell and S . S. Schmidt (eds), The Measurement of Productive Eficiency, Oxford University Press, New York, 68-1 19.
  43. Grosskopf, S. (1993), 'Efficiency and Productivity', in H. 0. Fried, C. A. K. Lovell and S. S. Schmidt (eds), The Measurement of Productive Eficiency, Oxford University Press, New York, 160-194.
  44. Huang, C. J., A. M. Tang and F. S. Bagi (1986), 'Two Views of Efficiency in Indian Agriculture', Canadian Journal of Agricultural Economics 34,209-226.
  45. Kalirajan, K. P. (1981), 'An Econometric Analysis of Yield Variability in Paddy Production', Canudian Journal of Agricultural Economics 29, 283-294.
  46. Kalirajan, K. P. (1989), 'On Measuring the Contribution of Human Capital to Agricul- tural Production', Indian Economic Review 24, 247-26 1.
  47. Kalirajan, K. P. (1 99 I), 'The Importance of Efficient Use in the Adoption of Technology: A Micro Panel Data Analysis', Journal of Productivity Analysis 2, 113-1 26. 229-245. 294-3 15. 14678489a, 1995, 3, · DOI
  48. Kalirajan, K. P. and R. T. Shand (1986), 'Estimating Location-Specific and Firm-Spe- cific Technical Efficiency: An Analysis of Malaysian Agriculture', Journal of Eco- nomic Development 1 1 , 147-160.
  49. Koopmans, T. C. (1951), 'An Analysis of Production as an Efficient Combination of Activities', in T. C . Koopmans, Ed., Activity Analysis ofProduction and Allocation, Cowles Commission for Research in Economics, Monograph No. 13, Wiley, New York.
  50. Kopp, R.J. and W.E. Diewert (1982), 'The Decomposition of Frontier Cost Function Deviations into Measures of Technical and Allocative Efficiency', Journal ofEcono- metrics 19, 319-331.
  51. Kumbhakar, S. C. (1990), 'Production Frontiers, Panel Data and Time-Varying Techni- cal Inefficiency', Journal of Econometrics 46, 201-21 1 .
  52. Kumbhakar, S. C., B . Biswas and D. V. Bailey (1989), 'A Study of Economic Efficiency of Utah Dairy Farmers: ASystem Approach', The Review of Economics and Statistics 71,595-604.
  53. Kumbhakar, S., S. C. Ghosh and J. T. McGuckin (1991), 'A Generalised Production Frontier Approach for Estimating Determinants of Inefficiency in U.S. Dairy Farms', Journal of Business and Economic Statistics 9, 279-286.
  54. Lee, Y. H. and P. Schmidt (1993), 'A Production Frontier Model with Flexible Temporal Variation in Technical Inefficiency', in H. 0. Fried, C. A. K. Lovell and S. S. Schmidt (eds), The Measurement of Productive EfJiciency, Oxford University Press, New York, 237-255.
  55. Meeusen, W. and J. van den Broeck (1977), 'Efficiency Estimation from Cobb-Douglas Production Functions With Composed Error', International Economic Review 18, 435-444.
  56. Olsen, J. A., P. Schmidt and D. M. Waldman (1 980), 'A Montecarlo Study of Estimators of the Stochastic Frontier Production Function', Journal of Econometrics 13,67-82.
  57. Pitt, M. M. and L-F. Lee (1981), 'Measurement and Sources of Technical Inefficiency in the Indonesian Weaving Industry', Journal of Development Economics 9,43-64.
  58. Phillips, M. J. and R. P. Marble (1986), 'Farmer Education and Efficiency: A Frontier Production Function Approach', Economics of Education Review 5,257-264.
  59. Ray, S. (1985), ' Measurement and Test of Efficiency of Farms in Linear Programming Models: AStudy of West Bengal Farms', Oxford Bulletin ofEconomics and Statistics
  60. Reifschneider, D. and R. Stevenson. (1991), 'Systematic Departures from the Frontier: A Framework for the Analysis of Firm Inefficiency', International Economic Review
  61. Schmidt, P. and R. C. Sickles (1984), 'Production Frontier and Panel Data', Journal of 47, 371-386. 32,715-723. Review 15,515-521. Functions', The Review of Economics and Staristics 58, 238-239. Business and Economic Statistics 2.367-374.
  62. 14678489a, 1995, 3, · DOI
  63. Schmidt, P. and C. A. K. Lovell (1979), 'Estimating Technical and Allocative Ineffi- ciency Relative to Stochastic Production and Cost Functions', Journal of Economet- rics 9, 343-366.
  64. Seiford, L. M. and R. M. Thrall (1990), 'Recent Developments in DEA: The Mathe- matical Approach to Frontier Analysis', Journal of Econometrics 46, 7-38.
  65. Seitz, W. D. (197 11, 'Productive Efficiency in the Steam-Electric Generating Industry', Journal of Political Economy 79,879-886.
  66. Sengupta, J. K. (1990), 'Transformations in Stochastic DEA Models', Journal of Econometrics 46, 109-124.
  67. Stevenson, R. E. (1980), 'Likelihood Functions for Generalised Stochastic Frontier Estimation', Journal of Econometrics 13.57-66.
  68. Tauer, L. W. and K. P. Belbase (1 987), 'Technical efficiency of New York Dairy Farms', Northeastern Journal of Agricultural and Resource Economics 16, 10-1 6.
  69. Taylor, T. G., H. E. Drumrnond and A. T. Comes (1986), 'Agricultural Credit Programs and Production Efficiency: An Analysis of Traditional Farming in Southeastern Minas Gerais, Brazil', American Journal of Agricultural Economics 68, 1 10-1 19.
  70. Taylor, T. G. and J. S. Shonkwiler (1986), 'Alternative Stochastic Specifications of the Frontier Production Function in the Analysis of Agricultural Credit Programs and Technical Efficiency', Journal of Development Economics 21, 149-1 60.
  71. Timmer, C. P. (1971), 'Using a Probabilistic Frontier Function to Measure Technical Efficiency', Journal of Political Economy 79,776-794.
  72. Zieschang, K. D. (1983), 'A Note on the Decomposition of Cost Efficiency into Technical and Allocative Components', Journal ofEconometrics 23,401 -405.

Cited by

Sorted by citations

Authors
Coelli, T. J.
Affiliations
The University of Western Australia (AU)
Corresponding author
Coelli, Tim J.
Venue
Australian Journal of Agricultural Economics
Publisher
Wiley
Published
1995-12
Volume
39
Issue
3
Pages
219-245
ISSN
0004-9395 (ISSN-L)
DOI
10.1111/j.1467-8489.1995.tb00552.x
OpenAlex
W2038796879
Cited by
769
References
1
Citations by year
2026: 17 · 2025: 15 · 2024: 27 · 2023: 32 · 2022: 29 · 2021: 35 · 2020: 36 · 2019: 33 · 2018: 34 · 2017: 31 · 2016: 38 · 2015: 29 · 2014: 46 · 2013: 40 · 2012: 39
FWCI
8.38
Type
journal article
Language
en
Open access
Licence
onlinelibrary.wiley.com/termsAndConditions#vor (vor, 6753 d)
Locations
  • Australian Journal of Agricultural Economics (publishedVersion)
  • RePEc: Research Papers in Economics (submittedVersion)
Topics
  • Social Sciences › Decision Sciences › Management Science and Operations Research › Efficiency Analysis Using DEA
  • Social Sciences › Safety Research › Agricultural economics and policies
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economics of Agriculture and Food Markets
Keywords
frontier production function, cost function, profit function, technical efficiency, allocative efficiency, scale efficiency, overall efficiency, frontier estimation

About these checks

Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.

Statistics and arithmetic are recomputed, not judged.

Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.

What counts as a claim ›How we measure confidence ›How we check this ›

Are you an author, or do you see a problem with this page? Request a review