Location of Repository

Technical Efficiency of Dryland and Irrigated Wheat Based on Stochastic Model

By Jyoti Kachroo, Arti Sharma and Dileep Kachroo


The technical efficiency and factors affecting efficiency of wheat farmers under dryland and irrigated conditions in the Jammu district of J &K state have been reported for the year 2006. The stochastic frontier production function has been used to determine the technical efficiency of these farmers. Technical efficiency has been found different under both the conditions. The estimated mean technical efficiency of wheat farmers under dry condition has been found to be 0.84, indicating 84 per cent efficiency in their use of production inputs, and for irrigated condition it has been found to be 0.88, that means the average output of wheat could be increased by 12 per cent by adopting technology properly. The value of γ under dry and irrigated conditions has indicated that about 99 per cent and 88 per cent of the differences between the observed and the maximum production frontier outputs are due to the factors, which are under farmers’ control. The estimated value of λ under dry and irrigated conditions are significantly different from zero, indicating a good fit and the correctness of the distributional assumptions specified. The value of λ has been more than one, implying the dominance of one-sided component Ui in Ei and thus indicated high degree of technical inefficiency. In other words, the inefficiency component was not dominated by the random factors. The variance ratio γ has showed that the farm-specific variability contributed more to the variation in yield, which means that variation in output from frontier is attributed to technical inefficiency. Some of the factors found to influence the level of technical efficiency are higher level of education in irrigated condition and larger number of male workers under dry conditions.Agricultural and Food Policy,

OAI identifier:
Downloaded from http://purl.umn.edu/97019

Suggested articles



  1. (2008). Digest of Statistics.
  2. (2008). Economic efficiency and constraints of maize production in the northern region of Bangladesh.
  3. (2007). Economic efficiency of small scale food crop production in Nigeria: A stochastic frontier approach.
  4. (2005). Economic Evaluation of Factor Influencing Maize Yield in the North Rift Region of Kenya. Masters of Science Thesis,
  5. (1993). Efficiency analysis of developing countries agriculture: A review of the frontier function literature.
  6. (2007). Efficiency and sustainability of maize cultivation in an area of Bangladesh.
  7. (1977). Efficiency estimation from Cobb-Douglas production functions with composed error.
  8. (1994). Efficiency in agricultural production: A case of peasant farms in eastern Paraguay.
  9. (2000). Farm household efficiency in Bangladesh: A comparison of stochastic frontier and DEA methods.
  10. (1977). Formulation and estimation of stochastic frontier production function models.
  11. (2002). Limdep Version 8.0: Econometric Modeling Guide.
  12. (1980). Maximum likelihood estimation of econometrics frontier functions.
  13. (2003). Principles and Practices of Dryland Agriculture.
  14. (1990). Rice Production: An Economic Analysis,
  15. (2006). Technical efficiency in agricultural production and its determinants. An exploratory study at district level.
  16. (2005). Technical Efficiency in Kenyan Maize Production: An Application of the Stochastic Frontier Approach,
  17. (2005). Technical efficiency in maize production in M.P.
  18. (2000). Technical efficiency of rice growers in Tamil Nadu: A study based on panel data.
  19. (1957). The measurement of productive efficiency.

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.