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IDENTIFICATION OF FACTORS WHICH INFLUENCE THE TECHNICAL INEFFICIENCY OF INDIAN FARMERS
Author(s) -
Coelli Tim J.,
Battese George E.
Publication year - 1996
Publication title -
australian journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 0004-9395
DOI - 10.1111/j.1467-8489.1996.tb00558.x
Subject(s) - inefficiency , production (economics) , frontier , agriculture , econometrics , agricultural economics , function (biology) , stochastic frontier analysis , identification (biology) , production–possibility frontier , economics , agricultural science , microeconomics , environmental science , geography , biology , archaeology , evolutionary biology , botany
The agricultural production of Indian farmers is investigated using a stochastic frontier production function which incorporates a model for the technical inefficiency effects. Farm‐level data from the International Crops Research Institute for the Semi‐Arid Tropics (ICRISAT) are used. Variables considered in the model for the inefficiency effects include the age and level of education of the farmers, farm size and the year of observation. The parameters of the stochastic frontier production function are estimated simultaneously with those involved in the model for the inefficiency effects. This approach differs from the usual practice of predicting farm‐level inefficiency effects and then regressing these upon various factors in a second‐stage of modelling. The results indicate that the above factors do have a significant influence upon the inefficiency effects of farmers in two of the three villages considered.