In this paper we develop an approach that synthesizes the best features of the two main methods in the estimation of production efficiency. Specically, our approach first allows for statistical noise, similar to Stochastic frontier analysis, and second, it allows modeling multiple-inputs-multiple-outputs technologies without imposing parametric assumptions on production relationship, similar to...

There have been many previous studies of technical inefficiency in rice production in the Philippines, but none has focused simultaneously on production risk and technical inefficiency at the farm level. In this study, we analyse technical inefficiency in a rainfed lowland rice environment in Central Luzon using a stochastic frontier production function with a heteroskedastic error structure.

This paper provides simulation evidence concerning some statistical properties of two different approaches to technical efficiency estimation for multipleoutput production under noisy conditions: The Ray Frontier Approach (RFA) from Löthgren (1997) and DEA+ proposed in Gstach (1996). RFA, unlike earlier approaches in the realm of stochastic frontier analysis, is capable of efficiency estimation...

this paper is concerned with the estimation of frontier production function to measure the technical efficiency for iranian textile companies during 1995. the objective of this estimation is to investigate if there are any differences in the technical efficiency between the private and public firms as well as the relationship between technical efficiency and size of textile companies in iran. a...

Data envelopment analysis (DEA) is an axiomatic, mathematical programming approach to productive efficiency analysis and performance measurement. This paper shows that DEA can be interpreted as a nonparametric least squares regression subject to shape constraints on production frontier and sign constraints on residuals. Thus, DEA can be seen as a nonparametric counter-part of the corrected ordi...

This study presents some quantitative evidence from a number of simulation experiments on the accuracy of the productivity growth estimates derived from growth accounting (GA) and frontier-based methods (namely Data envelopment Analysis-, Corrected ordinary least squares-, and Stochastic Frontier Analysis-based Malmquist indices) under various conditions. These include the presence of technical...

A number of studies have explored the semiand nonparametric estimation of stochastic frontier models by using kernel regression or other nonparametric smoothing techniques. In contrast to popular deterministic nonparametric estimators, these approaches do not allow one to impose any shape constraints (or regularity conditions) on the frontier function. On the other hand, as many of the previous...

A representative sample of 49 state and collective farms in Ukraine provides data in physical units on livestock and crop production and input use for 1989-92. The changes in production efficiency for beef, pork, dairy, winter wheat, grain, and potato production, investigated using stochastic frontier methods, show declining technical efficiency in livestock production and especially low margin...