We focus on determining the impacts of government programs on farms’ technical inefficiency levels. We use Kumbhakar’s (2002) stochastic frontier model that accounts for both production risks and risk preferences. Our theoretical framework shows that decoupled government transfers are likely to increase (decrease) DARA (IARA) farmers’ production inefficiencies if variable inputs are risk decrea...

“Within” estimation of the fixed-effect stochastic frontier model does not identify parameters on time-invariant explanatory variables. If time-invariant variables are important production inputs, then standard efficiency estimates are biased. This note details bias correction, when time-invariant inputs are dummy variables. © 2006 Elsevier B.V. All rights reserved.

the aim of this study is to investigate the context by which veterinary services may affect technical efficiency (te) of iranian dairy farms. a data envelopment analysis (dea) was applied to a random sample of 840 dairy farms from six provinces across iran to estimate regional frontier and metafrontier production functions and also to calculate corresponding te of these farms. the relationship ...

The stochastic frontier model with heterogeneous technical efficiency explained by exogenous variables is augmented with a sparse spatial autoregressive component for a crosssection data, and a spatial-temporal component for a panel data. An estimation procedure that takes advantage of the additivity of the model is proposed, computational advantages over simultaneous maximum likelihood estimat...

document for non-commercial purposes by any means, provided that this copyright notice appears on all such copies. * I would like to thank Peter Schmidt and Bob Myers for their suggestions and guidance. Thanks also go to Thomas Jayne for generously providing me the data, Zhiying Xu, and especially Margaret Beaver for helping me understand the data. All remaining errors and omissions are my own.