A study of technical inefficiencies of maize farmers within and outside the new agricultural extension program in the Harari region of Ethiopia

In 1994/95 Ethiopia launched a new agricultural intensification program based on the experience gained from the programs of the past and the success of the SG 2000 agricultural project in achieving higher yields in the subsistence sector. Stochastic frontier production functions were estimated for a sample of maize farmers within and outside the New Extension Program in order to study their technical inefficiencies and identify some of the factors contributing to variations in the productivity of maize farmers in the Harari Region of Ethiopia. It is found that there were technical change and changes in technical inefficiencies of maize farmers between 1994/95 and 1997/98. The average technical efficiency of maize farmers was 73 per cent and factors such as agricultural extension, formal education, and off-farm incomes were important factors affecting the technical inefficiencies of maize farmers within the program. We concluded that policies enhancing the managerial and decision-making capacity of maize growers contributed towards increasing their technical efficiencies and the objective of achieving increased maize production. Keywords: stochastic frontiers, technical inefficiencies, agricultural extension, Harari Region, Ethiopia South African Journal of Agricultural Extension Vol. 34(1) 2005: 136-15

The impact of deregulation and re-regulation on bank efficiency: evidence from Asia

Following the 1997 crisis, banking sector reforms in Asia have been characterised by the emphasis on prudential regulation, associated with increased financial liberalisation. Using a panel data set of commercial banks from eight major Asian economies over the period 2001-2010, this study explores how the coexistence of liberalisation and prudential regulation affects banks’ cost characteristics. Given the presence of heterogeneity of technologies across countries, we use a stochastic frontier approach followed by the estimation of a deterministic meta-frontier to provide ‘true’ estimates of bank cost efficiency measures. Our results show that the liberalization of bank interest rates and the increase in foreign banks' presence have had a positive and significant impact on technological progress and cost efficiency. On the other hand, we find that prudential regulation might adversely affect bank cost performance. When designing an optimal regulatory framework, policy makers should combine policies which aim to foster financial stability without hindering financial intermediation

Measuring persistent and transient energy efficiency in the US

The promotion of US energy efficiency policy is seen as a very important activity. Generally, the level of energy efficiency of a country or state is approximated by energy intensity, commonly calculated as the ratio of energy use to GDP. However, energy intensity is not an accurate proxy for energy efficiency given that changes in energy intensity are a function of changes in several factors including the structure of the economy, climate, efficiency in the use of resources, behaviour and technical change. The aim of this paper is to measure persistent and transient energy efficiency for the whole economy of 49 states in the US using a stochastic frontier energy demand approach. A total US energy demand frontier function is estimated using panel data for 49 states over the period 1995 to 2009 using two panel data models: the Mundlak version of the random effects model (which estimates the persistent part of the energy efficiency) and the true random effects model (which estimates the transient part of the energy efficiency). The analysis confirms that energy intensity is not a good indicator of energy efficiency, whereas, by controlling for a range of economic and other factors, the measures of energy efficiency obtained via the approach adopted here are. Moreover, the estimates show that although for some states energy intensity might give a reasonable indication of a state’s relative energy efficiency, this is not the case for all states.ISSN:1570-646XISSN:1570-647

A hierarchical panel data stochastic frontier model for the estimation of stochastic metafrontiers

[[abstract]]This paper proposes a stochastic frontiermodel with three composed errors, and therefore six error components. As in the metafrontier literature, firms belong to groups with a group-specific frontier. A firm has a level of short-run and long-run inefficiency relative to its group-specific frontier, as in existing models with two composed errors and four error components. But now there is also a group-specific inefficiency, that is, a shortfall of the group-specific frontier from the best practice metafrontier. The paper shows how to estimate this model and how to extract predictions of the various inefficiencies.[[notice]]補正完

Measuring productivity and efficiency: a Kalman filter approach

In the Kalman filter setting, one can model the inefficiency term of the standard stochastic frontier composed error as an unobserved state. In this study a panel data version of the local level model is used for estimating time-varying efficiencies of firms. We apply the Kalman filter to estimate average efficiencies of U.S. airlines and find that the technical efficiency of these carriers did not improve during the period 1999-2009. During this period the industry incurred substantial losses, and the efficiency gains from reorganized networks, code-sharing arrangements, and other best business practices apparently had already been realized

Efficiency of Ontario primary care physicians across payment models : a stochastic frontier analysis

Objective The study examines the relationship between the primary care model that a physician belongs to and the efficiency of the primary care physician in Ontario, Canada. Methods Survey data were collected from 183 self-selected physicians and linked to administrative databases to capture the provision of services to the patients served for the 12 month period ending June 30, 2013, and the characteristics of the patients at the beginning of the study period. Two stochastic frontier regression models were used to estimate efficiency scores and parameters for two separate outputs: the number of distinct patients seen and the number of visits. Results Because of missing data, only 165 physicians were included in the analyses. The average efficiency was 0.72 for both outputs with scores varying from 4 % to 93 % for the visits and 5 % to 94 % for the number of patients seen. We observed that there were both very low and very high efficiency scores within each model. These variations were larger than variations in average scores across models