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A Comparison of Panel Data Models in Estimating Technical Efficiency

Author

Listed:
  • Rashidghalam, Masoomeh

    (University of Tabriz)

  • Heshmati, Almas

    (Jönköping University)

  • Dashti, Ghader

    (University of Tabriz)

  • Pishbahar, Esmail

    (University of Tabriz)

Abstract

The purpose of this paper is two-fold. First, it compares the performance of various panel data models in estimating technical efficiency in production. Second, it applies various stochastic frontier panel data models to estimate the technical efficiency of Iran's cotton production and to provide empirical evidence on the sources of technical inefficiency of cotton producing provinces. The results indicate that labor and seeds are determinants of cotton production and inorganic fertilizers result in reducing technical efficiency. The mean technical efficiency of the models is around 80 percent. Variations in the distribution of estimated efficiency amongst the different models is large.

Suggested Citation

  • Rashidghalam, Masoomeh & Heshmati, Almas & Dashti, Ghader & Pishbahar, Esmail, 2016. "A Comparison of Panel Data Models in Estimating Technical Efficiency," IZA Discussion Papers 9807, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp9807
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    Cited by:

    1. Lukáš Čechura & Zdeňka Žáková Kroupová, 2021. "Technical Efficiency in the European Dairy Industry: Can We Observe Systematic Failures in the Efficiency of Input Use?," Sustainability, MDPI, vol. 13(4), pages 1-19, February.
    2. Dale Squires & Kathleen Segerson, 2022. "Capacity and Capacity Utilization in Production Economics," Springer Books, in: Subhash C. Ray & Robert G. Chambers & Subal C. Kumbhakar (ed.), Handbook of Production Economics, chapter 24, pages 1001-1037, Springer.
    3. Berisso Oumer & Heshmati Almas, 2020. "Farm-heterogeneity and persistent and transient productive efficiencies in Ethiopia’s smallholder cereal farming," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 11(1), pages 1-23, January.
    4. Salvatore Bimonte & Arsenio Stabile, 2019. "The Effect of Growth and Corruption on Soil Sealing in Italy: A Regional Environmental Kuznets Curve Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(4), pages 1497-1518, December.

    More about this item

    Keywords

    technical efficiency; labor use; panel data modeling; time-variant; persistent inefficiency; individual heterogeneity; model comparison; cotton production; Iran;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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