Stochastic Production Function Research Articles

EFISIENSI TEKNIS DAN FAKTOR YANG MEMPENGARUHI PRODUKSI PADI LOKAL SIGUPAI DI KABUPATEN ACEH BARAT DAYA (Technical Efficiency and Factors Affecting the Production of Local Sigupai Rice in Aceh Barat Daya Regency)

Sigupai rice is highly sought after and has significant economic value. Despite its popularity, the production of Sigupai rice remains relatively low. This study aims to identify the factors influencing the production, technical efficiency, and sources of inefficiency in Sigupai rice farming in West Aceh District. Data was collected from all 31 Sigupai rice farmers in the region and analyzed using the stochastic frontier Cobb-Douglas production function. The results indicate that Sigupai rice farming has achieved a technical efficiency level of 0.80. Land area, seed quantity, and fertilizer were found to significantly influence rice production. However, farmers' age, experience in cultivating Sigupai rice, and education did not have a significant impact on technical inefficiency.To improve the efficiency of Sigupai rice farming, it is recommended to optimize input utilization, including proper land planning and soil management. Additionally, the use of certified Sigupai rice seeds and efficient fertilization techniques can contribute to increased productivity.

Indonesian SDGS Problems: Technical Inefficiency Due to Economic Crime and Income Inequality

Objective: The study objective is investigating the technical inefficiency resulted from economic crime and its association with income inequality, with the study aims are modeling a stochastic frontier aggregate production function, measuring inefficiency, and mapping the economic inefficiency due to economic crime with income inequality association. Theoretical Framework: The main concepts are Crime Economics, Stochastic Frontier Analysis, and Aggregate Production Function. Method: The methodology comprises a stochastic frontier aggregate production function modelling to calculate technical inefficiency due to economic crime and mapping technical inefficiency due to economic crime with income inequality association. The data is Indonesian provincial data from 2016 to 2019 provided by Indonesian Statistics. Results and Discussion: The modelling reveals that aggregate production stochastic frontier is established and technical inefficiency due to economic crime is calculated. The mapping shows that some provinces experience positive association between technical inefficiency due to economic crime with income inequality. Research Implications: This study implies the importance of concerning theoritically and practically to technical inefficiency due to economic crime and its association with income inequality. These implication can encompass economic, social, and security sectors. Originality/Value: This study contributes to the literature by modeling the stochastic frontier aggregate production function that accommodates economic crime, measuring technical inefficiency due to economic crime, and mapping the technical inefficiency due to the economic crime with income inequality association. The relevance and value of this research are evidenced by SDGs components such as decent work and economic growth, reduced inequalities, and peace, justice, and strong institutions.

Assessing the factors affecting maple syrup yield in the US and predicting production potential in Kentucky

Maple syrup is an important part of the economy in various regions of the United States. Studies on maple syrup production potential mostly use climatic factors as determinants and, therefore, fail to account for non-climatic factors. In this study, we applied a stochastic production function framework to establish a relationship between maple syrup yield and a set of climatic (temperature and tapping season length) and non-climatic determining factors, such as the number of maple trees and utilization rate of the potential number of taps. Tree characteristics, climatic, and other factors had mixed effects on syrup yield. The number of maple trees, the number of taps, and the minimum temperature had marginal negative effects on average syrup yield, while the length of the season and the maximum temperature had positive effects. A predictive model was developed and used to estimate the potential production of maple syrup under low, medium and high utilization levels in Kentucky, a likely region for maple syrup production. This model could be useful for maple syrup research, education, and extension in maple-producing states.

Technical Efficiency of Indonesian Potato Farming during Rainy and Dry Seasons: Evidence from Merangin District, Indonesia

Potatoes are among the vegetables highly susceptible to climate change, and its consequences can significantly affect technical efficiency.However, the production of potato relatively fluctuated due to some factors influencing it. The study aims to analyze the factors affecting potato production, measure the level of technical efficiency in potato farming, and identify the socio-economic factors that influence technical inefficiency in potato farming, both in the rainy and dry seasons. The study was conducted in Merangin Regency, Jambi Province. A purposive sampling method was used to select the research area and collect data from 102 potato farmers. The data were analyzed using the Stochastic Frontier Cobb-Douglas production function model with a maximum likelihood estimation (MLE) approach. The research results show that land and seed variables significantly influence potato production, both in the rainy and dry seasons. Meanwhile, fertilizer P and labor only significantly influence the dry season. The average level of technical efficiency in the dry season (0.89) is higher than in the rainy season (0.73). The results of the average difference test (t-test) show that in the dry season, the level of technical efficiency has a higher value than in the rainy season, with a significance of 1%. The significant socio-economic variables influencing technical efficiency are membership in farmer groups.

Estimation of technical efficiency of maize farmers in Wa East District in Ghana: translog stochastic frontier approach

ABSTRACT Efficiency analysis among maize farmers is crucial, especially when maize output continues to decline, even under improved technology. The aim of this study was to estimate the level of technical efficiency among maize farmers in Wa East District in Ghana and to assess the determinants of their technical efficiency. Data were collected from 273 household heads using the multistage sampling method. The study applied the stochastic translog production function to do the estimation and assessment. The results revealed a variation of 60.2%–89.5% efficiency levels among maize farmers. In addition, maize farmers achieved about 71.5% of the required technical competences. Factors contributing significantly were labour, land, age, farming experience, household size, hired labour and seed quality. The results showed an increasing returns-to-scale parameter being significantly different from unit. Recommendations are improvement in the capacity of farmers by agriculture extension service and accessibility of farmers to affordable production inputs in real time.

ANALYSIS OF TECHNICAL EFFICIENCY OF CASSAVA FARMERS IN ABAK LOCAL GOVERNMENT AREA OF AKWA IBOM STATE, NIGERIA

The study analyzed the technical efficiency of cassava farmers in Abak Local Government Area of Akwa Ibom State, Nigeria. The specific objectives were to; describe the socio-economic characteristics of cassava farmers; determine the technical efficiency of cassava farmers; estimate the determinants of technical efficiency among cassava farmers and examined the constraints militating against cassava production in the study area. Multistage sampling procedure was used in selecting 120 respondents for the study. Primary data were obtained using structured questionnaire and the data obtained were analyzed using descriptive statistics and stochastic frontier production function. The result showed that the average age, household size, farming experience, and farm size of the sampled respondents were 39 years, 4 persons, 6 years and 1.9 hectares, respectively. The mean, maximum and minimum technical efficiency were 0.73, 0.95 and 0.38. The findings on the estimated stochastic production function and the determinants of technical inefficiency showed that farm size (p<0.01), cuttings (p<0.01) and labour (p<0.01) were found to be significant inputs in cassava production while household size (p<0.1), education (p<0.01), monthly income (p<0.01), membership of cooperative (p<0.01), access to credit (p<0.01) and access to extension services (p<0.1) were the determinants of technical inefficiency of cassava production in the study area. Also, the major constraints to cassava production were, high cost of fertilizer (13.7%), theft (13.7%), lack of access to credit (13.7%), inadequate access to land (13.7%), and poor road network (13.7%). The study recommends that training and capacity-building programs should be targeted to improve farmers' knowledge and skills in efficient cassava production techniques, with a focus on optimizing inputs such as farm size, cuttings, labour and extension services. Also outreach programs should be strengthened to provide farmers with timely information, technical support, and best practices for cassava production, thereby reducing technical inefficiencies.

Assessing the Climate Change Impacts on Maize Production in the Slovak Republic and Their Relevance to Sustainability: A Case Study

Climate change poses a significant challenge to the agricultural sector, with far-reaching implications on a global scale. As the agriculture sector plays a critical role in the economy of the Slovak Republic, it is crucial to understand the impacts of climate change and, with it, the vulnerabilities that agricultural practices face. Agricultural production and food sustainability are intricately linked to various factors, including population growth and the effects of climate change. This paper focuses on analyzing the production of maize in Slovakia and identifying the factors driving its cultivation. We aim to assess how climate factors influence maize yields across different temperature and precipitation levels through comprehensive data analysis and statistical methods. By utilizing the stochastic production function proposed by Just and Pope (1979) for 1996 to 2022 and estimating model parameters using GRETL software, we aim to provide insights into the relationship between climate change and maize production. Furthermore, we explore the implications of our findings for the sustainability of agricultural practices in Slovakia. Our analysis reveals that the impact of temperature and precipitation on maize yield varies by month and exhibits a nonlinear nature, with climate changes generally exerting a negative influence. Understanding these dynamics is crucial for developing sustainable agricultural strategies that can mitigate the adverse effects of climate change on maize production and ensure long-term food security.

To analyze the technical and allocative efficiency of drill paddy cultivation in Bhandara district

The present study on paddy was undertaken in Bhandara district of Vidarbha region. The district was selected purposively. Three tehsils were selected. Out of the seven tehsil, Sakoli, Lakhandur and Pauni tehsil was selected for the study based on drill paddy cultivars. Three villages were selected purposively from each tahsil and from each village 10 farmers were selected overall 90 farmers were selected. The study revealed that how different cost components affect the profitability of production paddy crop and also proposes that at how much level of efficiency, the farmer is producing the paddy crop and how much level of efficiency is yet to be obtained. The maximum livelihood estimates of the stochastic production function revealed that fertilizer showed a negative and significant effect on paddy production. The co-efficient of the frontier profit function revealed that machine hours, seed and fertilizer shows a negative and significant impact on paddy farmer profitability. The mean technical, economic and allocative efficiency of paddy cultivation was found to be 97.49 per cent, 87.97 per cent and 89.86 per cent indicated that there is still scope for paddy farmers to increase the economical and allocative efficiency by operating at a full efficient level by proper utilization and allocation of existing resources and technology.

EFISIENSI TEKNIS USAHATANI PADI SAWAH PADA PERTANIAN PERKOTAAN DI KOTA SEMARANG: PENDEKATAN STHOCHASTIC FRONTIER

Improving food self-sufficiency requires a strategy to increase paddy rice production. The urban agriculture initiative in Semarang City is seen as a suitable policy. However, the current increase in agricultural productivity through improved production efficiency is hampered by land conversion and inappropriate use of production inputs. The objective of this study is to assess the technical efficiency of wet-rice farming and its influencing factors in Semarang City. Cross-sectional data from 68 respondents were used in this study. The data analysis strategy used in this study is Maximum Likelihood Estimation (MLE) combined with Stochastic Frontier Cobb Douglas production function. The results show that land area, seeds, NPK, urea, and pesticides are the main determinants of rice production. Paddy rice cultivation in Semarang City is technically efficient (0.73). Formal education and other sources of off-farm income are factors that influence the level of technical inefficiency of wet-rice cultivation. Strategies to achieve food self-sufficiency in urban agriculture include developing extension strategies and improving agricultural infrastructure.

TECHNICAL EFFICIENCY AND ITS DETERMINANTS IN DAIRY FARMERS IN KURUNEGALA DISTRICT: STOCHASTIC FRONTIER PRODUCTION FUNCTION

The objectives of this study are to estimate the technical efficiency and examine the impact of demographic and farming characteristics on technical efficiency among smallholder dairy farmers in Maho Divisional Secretariat in Kurunegala district during 2022. A structured questionnaire was used to collect information about milk production inputs and outputs, as well as other pertinent data, from 150 dairy farmers through convenience sampling. Maximum likelihood estimates of a stochastic production function were employed in the study and its results revealed that milk output was positively influenced by the number of milking cows and negatively influenced by the expenditure on veterinary at a 1% significant level. The average technical efficiency of the selected milk production farmers given by the Cobb – Douglas production function was 91% with minimum and maximum efficiency levels of about 73% and 96% respectively. This indicates that there is a scope and exists room for improving the existing level of milk production through enhancing the level of technical efficiency by 9% without increasing the level of input. In order to identify the impact of demographic and farming characteristics on technical efficiency, the Tobit model was applied. The results showed that age, sex, family size, and the number of milking times positively influenced the technical efficiency of milk production while access to credit marginally and positively influenced the efficiency of milk production in the study.

ESTIMATION OF RICE SEED PRODUCTION EFFICIENCY USING THE STOCHASTIC FRONTIER PRODUCTION FUNCTION

Production efficiency is a crucial factor in producing seeds. This paper aims to estimate the level of efficiency of rice seed production and determine the factors that influence it using a frontier stochastic production function approach. The rice varieties developed are Inpara3, Inpari Nutri Zink and Baroma. The research was conducted in Rawa Medang Village, Batang Asam District, West Tanjung Jabung Regency, Jambi Province, in December 2021. Data collection was carried out through observation and in-depth interviews with seed breeders. By using the frontier production function, the conclusion is obtained: The efficiency level of rice farming for superior varieties is relatively good, with the efficiency level at level 6. All rice seed breeders show effective performance. To increase the efficiency of rice farming in the future, it is necessary to sharpen the use of production input inputs. The consideration is that the breeder's orientation is to produce quality seed for use by the farming community. Therefore, more intensive technological assistance is needed.

Heterogenous response of rice yield to climate factors: a Just-Pope stochastic production function and quantile regression analysis

Heterogenous response of rice yield to climate factors: a Just-Pope stochastic production function and quantile regression analysis

Middle‐income country trap and total factor productivity growth

AbstractThis study assessed the factors allowing middle‐income countries to achieve higher income levels and thus escape the middle‐income trap (MIT). By deriving a stochastic production function using the Cornwell–Schmidt–Sickles (CSS) estimator and country panel data, we successfully distinguished between growth due to total factor productivity (TFP) and that attributable to various production inputs after controlling for random shocks and cross‐sectional dependence. We found that TFP growth was the main factor distinguishing middle‐income countries that have and have not escaped from the MIT; the former countries had significantly higher TFP growth.

Technical efficiency with stochastic production function frontier of seaweed farming in Pantai Amal, Tarakan City

Efficiency in production is very important to produce optimal production. An important factor in carrying out production efficiency is the use of inputs or production factors so as to produce optimal output. This is often called technical efficiency. The sampling technique was carried out using a non-probability sampling method, while the method or technique used is purposive sampling, with certain considerations, namely: seaweed farmers who have been farming for at least 1 year, the farmer’s age is at least 17 years. The number of samples was carried out by quota as many as 60 seaweed farmers. Methods of data analysis Technical efficiency is analyzed using the stochastic frontier production function, in this case the form of the production function is the Cobb Douglass production function. The results showed (1) the factors that affect the technical efficiency of seaweeds are land area, amount of seeds, labor force, age, education, and farming experience. (2) The average level of technical efficiency of seaweed farmers in Tarakan City in general is 0.974 (efficient). The factor that can reduced technical inefficiency was education. education has a negative relationship and was significant in increasing technical efficiency.

Efisiensi Teknis Usahatani Padi Organik Di Provinsi Lampung

<p><em>A healthy lifestyle is related to food consumption patterns, namely consuming organic food. One of the most commonly consumed organic food commodities is organic rice. Organic food products are cultivated without the use of chemicals. Changes in people's consumption patterns have led to an increase in demand for organic rice. However, at present, the productivity of organic rice farming is still low when compared to the productivity of conventional rice farming. The low productivity is thought to be caused by the inefficient allocation of production factors. This study aims to analyze the factors that affect organic rice production, examine whether organic rice farming in Lampung Province has been technically efficient, and find out what factors cause technical inefficiency in organic rice farming in Lampung Province. The location of this research is Beringin Kencana Village, Candipuro District, South Lampung Regency, and Purwokencono Village, Sekampung Udik District, East Lampung Regency in </em><em>July</em><em>-August 2022. Sampling was carried out by census. The research method used is the Stochastic Frontier Cobb-Douglas production function. The results showed that the factors that affect the production of organic rice are land area, the number of seeds, and the use of organic pesticides. The average level of technical efficiency is 0.91. Factors that affect technical inefficiency are the age of the farmer, farming experience, and participation in extension.</em></p>

Technical, Economic, and Allocative Efficiency of Corn Farming In South Lampung Regency

South Lampung Regency is the center of corn production in Lampung Province. However, the low productivity of corn due to the suboptimal allocation of production factors has affected the efficiency of corn farming production. This research aims to analyze the level of technical, allocative, and economical efficiency corn farming in South Lampung Regency. Two subdistricts in South Lampung Regency—Penengahan and Ketapang—that are major corn production hubs were used for data collection. The data collected in this study are primary and secondary. Primary data was obtained using a survey method, namely by directly interviewing corn farmers using a list of questions (a questionnaire) that has been provided. Secondary data were obtained from institutions or agencies related to this research. A simple random sampling method was used to choose up to 71 maize producers for the sample size. The Stochastic Frontier Cobb-Douglas production function is used in data analysis and is processed by the Frontier 4.1 application. The results show that corn farming was technically efficient but not allocatively or economically efficient.. The use of inputs appropriately and efficiently will reduce the use of excessive inputs, which can then be allocated to the purchase of other inputs that are less used, with the aim of achieving allocative and economic efficiency.

Foreign players, team production, and technical efficiency: Evidence from European soccer

AbstractAs on‐field success is nowadays the main objective of European soccer clubs, good management needs to extract the highest sport success from the squad talent at hand. Because teams differ in their quality, performance needs to be compared with the best practice of comparable units. One remarkable source of heterogeneity across teams is the squad composition, which can produce gains from diversity together with communication costs. The paper studies the efficiency in sporting performance of soccer teams, paying attention to how the number of foreign players relates to productive inefficiency. Using data for 146 teams in the top 5 European leagues during 10 seasons, we estimate a double heteroskedastic True Random Effects Stochastic Frontier team production function. We find that (i) the number of passes, ball recoveries, and shots from the penalty area improve team efficiency, and (ii) a higher number of foreign players increase inefficiency. Our findings suggest that gains from squad diversity might be offset by communication costs.

A novel measure of firm-level production outsourcing

Outsourcing is a critical area of study, as related decisions account for many of the structural changes in supply chains. However, research of the causes and impacts of outsourcing has been constrained by limited measures of outsourcing intensity. Most outsourcing studies are operationalized at an industry level, or rely on data from surveys of small samples that focus on specific outsourced functions and processes. This paper proposes an industry-relative measure of firm-level production outsourcing that is easy to estimate using readily available financial reporting data. We utilize a stochastic production function to estimate the amount of each firm's output that is unaccounted for by their use of capital and labor and partition this residual into firm-specific productivity and outsourcing. Our analysis indicates that the proposed measure is valid and substantially more predictive of actual production outsourcing levels than other measures offered in the literature. This measure promises to better enable researchers to more accurately assess firm-level production outsourcing, as well as aiding their investigations into the many outsourcing antecedents, performance outcomes, and contingency effects proposed in the literature.

Profitability of Cattle Fattening Enterprise in Maiduguri, Borno State, Nigeria

The study determined the profitability of cattle fattening in Maiduguri. Data were collected from a random sample of 300 fatteners using well-structured questionnaire. The data were analyzed using gross margin analysis and stochastic profit production function. Analysis of cost and returns revealed a mean gross margin per cattle of N46, 581.63 with cost of feed accounting for more than 83.9% of the average total variable cost per cattle. This suggests that cattle fattening is highly a profitable venture and that cost of feed is the most dominant variable cost of cattle fattening. All factors used in determining the impact of variable costs on profitability were found to be negative and significant except farm size which is positive. Thus, increase in farm size will lead to increase in profit all things being equal. The lack of incentives, ineffective extension services and poor credit facilities were major constraints identified for cattle fattening enterprise.

TECHNICAL EFFICIENCY OF YAM PRODUCTION IN PAIKORO LOCAL GOVERNMENT AREA OF NIGER STATE, NIGERIA

The study examined technical efficiency of yam farmers in Paikoro Local Government Area of Niger State, Nigeria was analyzed using the stochastic frontier production model. Data were collected from 90 yam farmers selected using simple random sampling technique. The data were collected with the aid of structured questionnaire and oral interview were analyzed using Descriptive statistics, stochastic frontier production function. The maximum likelihood estimate (MLE) of the stochastic frontier model production function revealed that the inputs were under-utilized the results of the socio-economic characteristics shows that yam farmers was dominated 50% by male farmers, within the range of 46- 55 years, 47% of the farmers had farm size less-than 1 hectare with at least 10 years’ experience. The technical efficiency of farmers differs substantially among the respondents, ranging between 0.325 and 0.952 with a mean economic efficiency of 0.807.