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Frontier production functions, technical efficiency and panel data: With application to paddy farmers in India

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Abstract

Frontier production functions are important for the prediction of technical efficiencies of individual firms in an industry. A stochastic frontier production function model for panel data is presented, for which the firm effects are an exponential function of time. The best predictor for the technical efficiency of an individual firm at a particular time period is presented for this time-varying model. An empirical example is presented using agricultural data for paddy farmers in a village in India.

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Authors and Affiliations

  1. Department of Econometrics, University of New England, 2351, Armidale, NSW, Australia

    G. E. Battese & T. J. Coelli

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  1. G. E. Battese
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  2. T. J. Coelli
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Battese, G.E., Coelli, T.J. Frontier production functions, technical efficiency and panel data: With application to paddy farmers in India. J Prod Anal 3, 153–169 (1992). https://doi.org/10.1007/BF00158774

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