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Technical Efficiency: A Comparison Of Production Frontier Methods

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  • D. L. Neff
  • P. Garcia
  • C. H. Nelson

Abstract

Recent differences in the measurement of farm efficiency may be related to the methods employed. Here, four alternative production frontiers are estimated using time‐series, cross‐section data for a sample of Illinois grain farms. Efficiency measures are found to be highly correlated between nonparametric methods, and between parametric methods. However, large differences are noted when efficiency measures are compared between nonparametric and parametric methods. An analysis of farms with large differences, which are efficient under the nonparametric method, indicates that correlations between efficiency measures are much higher when these firms are excluded.

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  • D. L. Neff & P. Garcia & C. H. Nelson, 1993. "Technical Efficiency: A Comparison Of Production Frontier Methods," Journal of Agricultural Economics, Wiley Blackwell, vol. 44(3), pages 479-489, September.
    • Handle: RePEc:bla:jageco:v:44:y:1993:i:3:p:479-489
    DOI: 10.1111/j.1477-9552.1993.tb00289.x
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    2. Tanira T. Kingi & Tom F. Kompas, 2005. "Communal Land Ownership and Agricultural Development: Overcoming Technical Efficiency Constraints Among Fiji’s Indigenous Sugercane Growers," International and Development Economics Working Papers idec05-11, International and Development Economics.
    3. Fousekis, Panos & Spathis, Pavlos & Tsimboukas, Konstantinos, 2001. "Assessing the Efficiency of Sheep Farming in Mountainous Areas of Greece. A Non Parametric Approach," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 2(2), pages 1-11, August.
    4. Jennifer K. sesabo & Richard S.J. Tol, 2006. "Technical Efficiency and Small-scale Fishing Households in Tanzanian coastal Villages: An Empirical Analysis," Working Papers FNU-95, Research unit Sustainability and Global Change, Hamburg University, revised Jan 2006.
    5. Abdul Wadud, 2013. "Impact of Microcredit on Agricultural Farm Performance and Food Security in Bangladesh," Working Papers 14, Institute of Microfinance (InM).
    6. Temesgen T. Deressa, 2011. "Effects of climatic conditions and agro-ecological settings on the productive efficiencies of small-holder farmers in Ethopia," Working Papers 223, Economic Research Southern Africa.
    7. Tadesse, Bedassa & Krishnamoorthy, S., 1997. "Technical efficiency in paddy farms of Tamil Nadu: An analysis based on farm size and ecological zone," Agricultural Economics, Blackwell, vol. 16(3), pages 185-192, August.
    8. Fertő, Imre, 2002. "A mezőgazdasági termelés szerkezetének változásai a fejlett országokban, II. Az üzemnagyság és a mérethozadék problémája a mezőgazdaságban [Changes in the structure of agricultural production in th," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(9), pages 760-773.
    9. Álvaro Ramírez Suárez, 2013. "Análisis de eficiencia económica de fincas arroceras: una aplicación de una función determinística de ingresos brutos frontera," Revista Lebret, Universidad Santo Tomás - Bucaramanga, vol. 5, pages 213-240, December.
    10. Sedik, David & Trueblood, Michael & Arnade, Carlos, 1999. "Corporate Farm Performance in Russia, 1991-1995: An Efficiency Analysis," Journal of Comparative Economics, Elsevier, vol. 27(3), pages 514-533, September.
    11. Gelaw, Fekadu, 2013. "Inefficiency and Incapability Gaps as Causes of Poverty: A Poverty Line-Augmented Efficiency Analysis Using Stochastic Distance Function," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 8(2), pages 1-45, August.
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    13. Fraser, Iain & Hone, Phillip, 2001. "Farm-level efficiency and productivity measurement using panel data: wool production in south-west Victoria," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(2), pages 1-18.

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