In this paper an attempt is made to explain the basic concept of efficiency, frontier production function, technical efficiency, deterministic frontier, and stochastic frontier. Efficiency of a firm/industry refers to its performance in the utilization of resources at its disposal and is a relative concept. Technical efficiency of a production function is defined as the maximum quantity of outp...

efficiency in agricultural production is indicative of the efficiency level of farm households in their farming activities. farmers in developing countries do not make use of all the potential technological resources, thus making inefficient decisions in their agricultural activities. herein, technical efficiency in relation with the production of three types of rice crop (boro, aus and aman) w...

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...

Received analyses based on stochastic frontier modeling with panel data have relied primarily on results from traditional linear fixed and random effects models. This paper examines extensions of these models that circumvent two important shortcomings of the existing fixed and random effects approaches. The conventional panel data stochastic frontier estimators both assume that technical or cos...

In the standard stochastic frontier model with sample selection, the two components of the error term are assumed to be independent, and the joint distribution of the unobservable in the selection equation and the symmetric error term in the stochastic frontier equation is assumed to be bivariate normal. In this paper, we relax these assumptions by using two copula functions to model the depend...