Model Selection in Stochastic Frontier Analysis with an Application to Maize Production in Kenya

This paper shows how to compute the standard errors for partial effects of exogenous firm characteristics influencing firm inefficiency under a range of popular stochastic frontier model specifications. We also develop an R[superscript 2]-type measure to summarize the overall explanatory power of th...

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Main Authors:	Liu, Yanyan, Myers, Robert
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Production Cost Capital, Total Factor, and Multifactor Productivity Capacity D240 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Agriculture: Aggregate Supply and Demand Analysis Prices Q110 Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets Q120 Agricultural R&D Agricultural Technology Agricultural Extension Services Q160
Online Access:	http://hdl.handle.net/10986/4715

id	okr-10986-4715
recordtype	oai_dc
spelling	okr-10986-47152021-04-23T14:02:19Z Model Selection in Stochastic Frontier Analysis with an Application to Maize Production in Kenya Liu, Yanyan Myers, Robert Production Cost Capital, Total Factor, and Multifactor Productivity Capacity D240 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Agriculture: Aggregate Supply and Demand Analysis Prices Q110 Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets Q120 Agricultural R&D Agricultural Technology Agricultural Extension Services Q160 This paper shows how to compute the standard errors for partial effects of exogenous firm characteristics influencing firm inefficiency under a range of popular stochastic frontier model specifications. We also develop an R[superscript 2]-type measure to summarize the overall explanatory power of the exogenous factors on firm inefficiency. The paper also applies a recently developed model selection procedure to choose among alternative stochastic frontier specifications using data from household maize production in Kenya. The magnitude of estimated partial effects of exogenous household characteristics on inefficiency turns out to be very sensitive to model specification, and the model selection procedure leads to an unambiguous choice of best model. We propose a bootstrapping procedure to evaluate the size and power of the model selection procedure. The empirical application also provides further evidence on how household characteristics influence technical inefficiency in maize production in developing countries. 2012-03-30T07:29:23Z 2012-03-30T07:29:23Z 2009 Journal Article Journal of Productivity Analysis 0895562X http://hdl.handle.net/10986/4715 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Kenya
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Production Cost Capital, Total Factor, and Multifactor Productivity Capacity D240 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Agriculture: Aggregate Supply and Demand Analysis Prices Q110 Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets Q120 Agricultural R&D Agricultural Technology Agricultural Extension Services Q160
spellingShingle	Production Cost Capital, Total Factor, and Multifactor Productivity Capacity D240 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Agriculture: Aggregate Supply and Demand Analysis Prices Q110 Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets Q120 Agricultural R&D Agricultural Technology Agricultural Extension Services Q160 Liu, Yanyan Myers, Robert Model Selection in Stochastic Frontier Analysis with an Application to Maize Production in Kenya
geographic_facet	Kenya
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	This paper shows how to compute the standard errors for partial effects of exogenous firm characteristics influencing firm inefficiency under a range of popular stochastic frontier model specifications. We also develop an R[superscript 2]-type measure to summarize the overall explanatory power of the exogenous factors on firm inefficiency. The paper also applies a recently developed model selection procedure to choose among alternative stochastic frontier specifications using data from household maize production in Kenya. The magnitude of estimated partial effects of exogenous household characteristics on inefficiency turns out to be very sensitive to model specification, and the model selection procedure leads to an unambiguous choice of best model. We propose a bootstrapping procedure to evaluate the size and power of the model selection procedure. The empirical application also provides further evidence on how household characteristics influence technical inefficiency in maize production in developing countries.
format	Journal Article
author	Liu, Yanyan Myers, Robert
author_facet	Liu, Yanyan Myers, Robert
author_sort	Liu, Yanyan
title	Model Selection in Stochastic Frontier Analysis with an Application to Maize Production in Kenya
title_short	Model Selection in Stochastic Frontier Analysis with an Application to Maize Production in Kenya
title_full	Model Selection in Stochastic Frontier Analysis with an Application to Maize Production in Kenya
title_fullStr	Model Selection in Stochastic Frontier Analysis with an Application to Maize Production in Kenya
title_full_unstemmed	Model Selection in Stochastic Frontier Analysis with an Application to Maize Production in Kenya
title_sort	model selection in stochastic frontier analysis with an application to maize production in kenya
publishDate	2012
url	http://hdl.handle.net/10986/4715
_version_	1764392493000949760

Model Selection in Stochastic Frontier Analysis with an Application to Maize Production in Kenya

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