A stochastic cost equation was estimated for US dairy farms using national data from the production year 2000 to determine how farmers might reduce their cost of production. Cost of producing a unit of milk was estimated into separate frontier (efficient) and inefficiency components, with both components estimated as a function of management and causation variables. Variables were entered as im...

Analysis of contracts under asymmetric information typically concludes by characterizing an optimal mechanism based on the principal’s beliefs regarding agent value functions and the distribution of agent types. This article demonstrates how tools from stochastic frontier analysis allow a principal to develop consistent beliefs using data that does not include agents’ private information. I emp...

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...

the non-differentiability and implicit definition of boundary of production possibility set (pps) in data envelopment analysis (dea) are two important difficulties for obtaining directional characteristics, including different elasticity measures and marginal rates of substitution. also, imposing weight restrictions in dea models have some shortcomings and misunderstandings. in this paper we ut...

The purpose of this study is to evaluate the efficiency indices for 60 Brazilian electricity distribution utilities. These scores are obtained by DEA Data Envelopment Analysis and Bayesian Stochastic Frontier Analysis models, two techniques that can reduce the information asymmetry and improve the regulator’s skill to compare the performance of the utilities, a fundamental aspect in incentive r...

This study explains the differences and variances in efficiency scores of Vietnamese banking sector retrieved from 27 studies published refereed academic journals under framework meta-regression analysis. These are mainly based on frontier measurements, which essentially Data Envelopment Analysis (DEA) Stochastic Frontier (SFA) for banks over period 2007–2019. The is estimated by using truncate...