in order to study the effective factors in sugar beet production, evaluation of technical, allocative and economical efficiency of sugar beet producers in bardsir city, 150 sugar beet producers were questioned by classified method. data were collected through questionnaire forms filled by producers in 2004-05. the stochastic frontier production and cost function method were used to analyze the ...

In this paper an attempt is made to explain the basic concept of efficiency, frontier production function, technical efficiency, deterministic frontier, and stochastic frontier. Efficiency of a firm/industry refers to its performance in the utilization of resources at its disposal and is a relative concept. Technical efficiency of a production function is defined as the maximum quantity of outp...

We consider the case of production units arranged into a number of groups. All units within a group choose output-input combinations from the same production possibilities set, which is represented by a stochastic frontier model. The metafrontier is the envelope (over groups) of the group-specific frontiers. We are interested in the unit’s inefficiency relative to its group-specific frontier, b...

The field of production frontier estimation is divided between the parametric Stochastic Frontier Analysis (SFA) and the deterministic, nonparametric Data Envelopment Analysis (DEA). This paper explores an amalgam of DEA and SFA that melds a nonparametric frontier with a stochastic composite error. Our model imposes the standard SFA assumptions for the inefficiency and noise terms. The frontier...

the aim of this paper is to use the concept of the metafrontier function to study the determination of efficiency differentials and technological gap ratio (tgr) on wheat production in khorasan razavi province. in this study, we used the metafrontier function and group frontier based on the concept of stochastic nonparametric envelopment of data analysis (stoned). the data used in this study co...

By using a stochastic frontier framework, the mutual effect of input use on production risk and inefficiency is investigated. Disentangling this mutual effect proves important for empirical reasons, at least when applied to west Tennessee cotton systems grown after various cover crops. The most striking result is that the stochastic frontier model, when compared with a typical Just-Pope model, ...

Finite mixture estimation (FME) is compared to estimated generalized least squares (EGLS) in the estimation of economies of size and production cost frontiers for Alabama dairy farms. FME provides several unique insights into the economic forces behind recent changes in Alabama’s dairy industry. FME provides estimation of a stochastic average cost frontier with known statisticalproperties, whic...