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Measuring Technical Efficiency of Maize Yields and Its Determinants
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Stochastic frontier modelling has been studied extensively in the literature, especially in Econometrics. In this book, the stochastic frontier model was considered incorporating exogenous variables on technical efficiency model using a single stage. The procedures how to build the model, how to include exogenous variables in the model, how to measure the technical efficiency of individuals and method of parameter estimation of the model parameter was discussed in detail. Model selection criteria and test of hypothesis about the parameters in the model are also discussed in detail. Stochastic frontier model was considered under this book when exogenous variables are excluded and included in the technical efficiency equation. Also the Bayesian approach of stochastic frontier model under common inefficiency distribution was determined. The technical efficiency of individual observation and the parameter estimate of the stochastic frontier model have been illustrated with the help of data over the study period.
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