Frontier Estimation Method

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Farrel in 1957 had begun his pioneer work on efficiency which is the origin of the present estimation method. Over time production frontier estimation has tended to group into two paths: The full frontier where all observations are assumed to be along the frontier and the deviation from the frontier is, due to inefficiency. The other path is stochastic frontier estimation where the deviation from frontier is, due to technical inefficiency and a symmetric random error which account for nose. The estimation of full frontier can be estimated either on non-parametric approach where technical efficiency is estimated by the linear programming for each individual household or through parametric approach where technical efficiency is estimated by statistical…show more content…
The empirical result show that estimated mean level of TE is 70 percent, indicating that with the present technology there is still room for a 30 percent increase in food production. According to his result, age of farmers affects technical efficiency negatively and while farming experience and level of education have positive and significant influence on the level of technical efficiency (Fasasi, 2007). Khai and Yabe (2011) analyzed technical efficiency of rice production and identified some determinants of TE of rice farmers in Vietnam. They used Cobb-Douglas production function. The study finds that mean level of TE is 81.6 percent, and the most important factors like labor, irrigation and education having positive impacts on technical efficiency levels and with the current technology there is still room for a 18.4 percent increase in rice production (Khai & Yabe,…show more content…
The data collected from a sample of 100 sorghum farmers in Hong local government area of Adamawa state using structured questionnaires. The study finds that land, seed, and fertilizer were the major factors that influence changes in sorghum output, while other variable such as education, extension contact and household size were major independent variables that had significant effects on the technical inefficiency among the sorghum producers. The TE of farmers varied from 15.62 to 92.14 percent with a mean TE of 72.62 percent, which indicating that there was an opportunity among sorghum production farmers to increase production by about 27.62 percent through better use of land, seed and fertilizer in the short term given the prevailing state of technology. This could be achieved through by Government intervention policy in terms of better access to land, improved seed and fertilizer (Abba,
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