Abstract:
Efficiency analysis remains an important issue in economic studies. The objective of this study is to compare the estimation ability of the parametric and non-parametric techniques of frontier models in technical efficiency analyses. For this study, Stochastic Frontier Production Function (SFPF), for parametric technique and the Data Envelopment Analysis (DEA), for non-parametric technique were estimated and compared. Results of analysis indicate that the sample farmers have varying level of technical efficiency, ranging from 0.22 to 0.87 for both techniques. Also the results for both parametric and nonparametric techniques showed that age and education level of sample farmers have significant influence on the level of technical efficiency. The estimated mean technical efficiency do not vary widely with the method used, though some differences in magnitude of individual technical efficiencies are noted for both techniques. Finally, a combination of the technical efficiency scores obtained from the two different methods is proposed as a better set of scores.
Page(s):
95-100
DOI:
DOI not available
Published:
Journal: Journal of Agriculture and Social Sciences, Volume: 4, Issue: 3, Year: 2008