IDENTIFICATION OF FACTORS WHICH INFLUENCE THE TECHNICAL INEFFICIENCY OF INDIAN FARMERS
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The agricultural production of Indian farmers is investigated using a stochastic frontier production function which incorporates a model for the technical inefficiency effects. Farm‐level data from the International Crops Research Institute for the Semi‐Arid Tropics (ICRISAT) are used. Variables considered in the model for the inefficiency effects include the age and level of education of the farmers, farm size and the year of observation. The parameters of the stochastic frontier production function are estimated simultaneously with those involved in the model for the inefficiency effects. This approach differs from the usual practice of predicting farm‐level inefficiency effects and then regressing these upon various factors in a second‐stage of modelling. The results indicate that the above factors do have a significant influence upon the inefficiency effects of farmers in two of the three villages considered.
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Technical efficiency scores range from zero to 1 and are inversely related to the inefficiency effect.
“Given equation iii, the technical efficiency scores range from zero to 1 and inversely related to the inefficiency effect (Coelli and Battese, 1996).”
From Performance of Translog and Cobb-Douglas models in the estimation of technical efficiency of Irish potato production in Plateau State, Nigeria (2021) · cites this paper as Coelli and Battese, 1996
The stochastic frontier production function was independently proposed by Meeusen and Broeck (1977) and Aigner et al. (1977).
“As advanced by Coelli (1996), the stochastic frontier production function was independently proposed by Meeusen and Broeck (1977) and Aigner et al . (1977).”
From Performance of Translog and Cobb-Douglas models in the estimation of technical efficiency of Irish potato production in Plateau State, Nigeria (2021) · cites this paper as Coelli (1996)
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Cites
Efficiency Analysis of Developing Country Agriculture: A Review of the Frontier Function Literature
Bravo-Ureta, B. E., & Pinheiro, A. E. (1993) · Agricultural and Resource Economics Review · doi:10.1017/s1068280500000320 · Cited by 486 · cited 1× · see citing works
“3The majority o£ empirical studies cited by Bravo-Ureta and Pinheiro (1993) predict the technical efficiency of the i-th farmer, in a cross-sectional survey, using the result, exp{-E(UilVi-Ui)}, where the conditional expectation of Ui, given the composed error, Vi-Ui, was first suggested by Jondrow et al (1982) to pre…”
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Research works printed but not linked: 19
- Aigner, D., C.A.K. Lovell, and P. Schmidt (1977), 'Formulation and Estimation of Stochastic Frontier ProductionFunction Models', Journal ofEconometrics, 6,21-37.
- Bardhan, P.K. (1973), 'Size, Productivity and Returns to Scale: An Application of Farm-level Data in Indian Agriculture', Journal of Political Economy, 81, 1370- 1386.
- Battese, G.E. and T.J. Coelli (1992), 'Frontier Production Functions, Technical Effi- ciency and Panel Data: With Application to Paddy Farmers in India', Journal of Productivity Analysis, 3, 153-169.
- 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.
- Bauer, P.W. (1990), 'Recent Developments in the Econometric Estimation of Frontiers', Journal of Econometrics, 46,39-56.
- Coelli, T.J. (1992), 'A Computer Program for Frontier Production Function Estimation: FRONTIER, Version 2.0', Economics Letters, 39,29-32.
- Coelli, T.J. (1995a), 'Recent Developments in Frontier Estimation and Efficiency Measurement', Australian Journal of Agricultural Economics, 39,219-245.
- Coelli, T.J. (1995b), 'A Monte Car10 Analysis of the Stochastic Frontier Production Function', Journal of Productivity Analysis, 6,247-268.
- Farrell, M.J. (1957), 'The Measurement of Productive Efficiency', Journal of the Royal Statistical Society, Series A, 120,253-290.
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- Parikh, A. and K. Shah (1994), 'Measurement of Technical Efficiency in the North West Frontier Province of Pakistan', Journal of Agricultural Economics, 45, 132-138.
- Reifschneider, D. and R. Stevenson (1991), 'Systematic Departures from the Frontier: A Framework for the Analysis of Firm Inefficiency', International Economic Review,
- Semi-arid Tropics, The John Wopkins University Press, Baltimore.
- 14678489a, 1996, 2, Downloaded from https://onlinelibrary.wiley.com/doi/10.1111/j.1467-8489.1996.tb00558.x, Wiley Online Library on [20/08/2023]. See the Terms and Conditions (https://onlinelibrary.wiley.com/terms-and-conditions) on Wiley Online Library for rules of use; OA articles are governed by the applicable Creative Commons License
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On the choice of functional form in stochastic frontier modeling
Giannakas, K., Tran, K. C., & Tzouvelekas, V. (2003) · Empirical Economics · doi:10.1007/s001810100120 · Cited by 104 · see citing works
Umar, H. S., Girei, A. A., & Yakubu, D. (2017) · Agrosearch · doi:10.4314/agrosh.v17i2.6 · Cited by 19 · see citing works
“However, SFA is applied mostly in efficiency estimation in preference to DEA because the former has ability to deal with stochastic noise and amenable to statistical testing of hypotheses (Coelli et al. 2005). Stochastic frontier models specified in the functional form of Cobb-Douglas or Transcendental logarithm (tran…”
BackgroundMethodResultInfluentialUche, C. O., Umar, H. S., Girei, A. A., & Ibrahim, H. Y. (2021) · Agro-Science · doi:10.4314/as.v20i2.10 · Cited by 4 · see citing works
“This can be expressed as follows: TEi = Y/Y*= exp (Xiλ + Vi- Ui)/ exp (Xiλ + Vi) = esp (Ui) …………………. iv Given equation iii, the technical efficiency scores range from zero to 1 and inversely related to the inefficiency effect (Coelli and Battese, 1996).”
Background
- Authors
- Coelli, T. J., & Battese, G. E.
- Affiliations
- The University of Queensland (AU)
- University of New England (US)
- ORCID
- Battese, George E.
- Venue
- Australian Journal of Agricultural Economics
- Publisher
- Wiley
- Published
- 1996-08
- Volume
- 40
- Issue
- 2
- Pages
- 103-128
- ISSN
- 0004-9395 (ISSN-L)
- OpenAlex
- W2050471002
- Cited by
- 571
- References
- 1
- Citations by year
- 2026: 5 · 2025: 11 · 2024: 24 · 2023: 17 · 2022: 29 · 2021: 34 · 2020: 34 · 2019: 24 · 2018: 32 · 2017: 22 · 2016: 27 · 2015: 38 · 2014: 39 · 2013: 40 · 2012: 29
- FWCI
- 12.07
- Type
- journal article
- Language
- en
- Open access
- bronze
- doi.org
- 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
- Life Sciences › Agricultural and Biological Sciences › General Agricultural and Biological Sciences › Agricultural Economics and Practices
- Keywords
- technical inefficiency, Indian farmers, stochastic frontier analysis, farmer age, farmer education, farm size, semi-arid agriculture, ICRISAT
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