in this study, farm level technical efficiency (te) and its determinants were investigated. a stochastic cobb-douglas (cd) production frontier was used to provide estimates of input-oriented te for a sample of 100 rain fed farms in two palestinian governorates. empirical findings showed that the estimated te of the farms in the pooled sample ranged from 35.7 to 95.6%, with a mean value of 72.2%...

In this paper, we test for productivity gains resulting from the introduction of a productivity-based incentive program in a large manufacturing plant of a Fortune 500 corporation. We develop a methodology based on a stochastic nonparametric frontier estimation technique to evaluate productivity in the postincentive plan period relative to the pre-incentive plan period. We also test for product...

The present paper seeks to deal with the issue of technical and economic efficiency of rice producers in the Kou valley, located in the region of the high basins in the western part of Burkina Faso. The stochastic frontier approach was used to estimate the production function, from a CobbDouglas stochastic frontier function and its dual which allow the estimation of the technical, allocative an...

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 technical efficiency involved in cocoa production in Cross River State was estimated using the stochastic frontier production function analysis. The effects of some selected socio- economic characteristics of the farmers on the efficiency indices were also estimated. The study relied upon primary data generated from interviewing cocoa farmers using a set of structured questionnaire. A multi...

Stochastic nonparametric envelopment of data (StoNED) combines the virtues of data envelopment analysis (DEA) and stochastic frontier analysis (SFA) into a unified framework of frontier estimation. StoNED melds the nonparametric piece-wise linear DEA-type frontier with stochastic SFA-type inefficiency and noise terms. We show that the StoNED model can be estimated in the panel data setting in a...

this study examines the responsible energy consumption of listed european hotels. hotel efficiency is estimated using a stochastic frontier analysis (sfa) production function, with supplies costs as the input and total revenue as the output. cluster analysis is used to group the hotels into homogeneous groups according to their efficiency level, size, or profitability. the results show that the...

The normal-gamma stochastic frontier model was proposed in Greene (1990) and Beckers and Hammond (1987) as an extension of the normalexponential proposed in the original derivations of the stochastic frontier by Aigner, Lovell, and Schmidt (1977). The normal-gamma model has the virtue of providing a richer and more flexible parameterization of the inefficiency distribution in the stochastic fro...

Previous studies of the so-called frontier production function have not utilized an adequate characterization of the disturbance term for such a model. In this paper we provide an appropriate specification, by defining the disturbance term as the sum of symmetric normal and (negative) half-normal random variables. Various aspects of maximum-likelihood estimation for the coefficients of a produc...