Journal
AGRICULTURAL ECONOMICS
Volume 46, Issue 6, Pages 703-713Publisher
WILEY
DOI: 10.1111/agec.12186
Keywords
Technical efficiency; Nonparametric; Local maximum likelihood approach
Categories
Ask authors/readers for more resources
This study uses local maximum likelihood (LML) methods recently proposed by Kumbhakar et al. (2007) to assess the technical efficiency of arable crop Kansas farms. LML techniques overcome the most relevant limitations associated to mainstream parametric stochastic and nonparametric frontier models. LML allows deriving farm-level frontier parameter estimates. The relevance of using localized estimates is evidenced by the observed heterogeneity in production technologies. Technical efficiency scores derived from the LML approach [0.905] are higher than those of the DEA model under CRS [0.808] and SFA [0.804] and close to DEA-VRS [0.917] ratings. Deriving reliable information about farm efficiency performance is relevant to identify inefficient farms and define adequate policy and management strategies. The use of refined methods has thus important implications.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available