Comparative Analysis of Stochastic Frontier Partially non-parametric and Stochastic Frontier Parametric Methods Case Study: Measuring Cost Efficiency in Wheat Production in Iran

Ebrahim Moradi, Mosayeb Pahlavani, Ahmad Akbari and Hossain Mehrabi Bashrabadi

International Journal of Agricultural Management and Development (IJAMAD), 2013, vol. 03, issue 2, 8

Abstract: Most research on performance evaluation of agricultural crops in Iran analyzes technical efficiency with estimation of stochastic production function. In this paper in spite of past research we survey cost efficiency with panel data. Information about input prices, yield and production cost per hectare collected for 28 provinces in 10 years and stochastic frontier cost function estimated with panel data in two methods, parametric stochastic frontier and partially non-parametric stochastic frontier. The results show that according to parameter significance and discretion of production structure parametric methodology is more suitable than non- parametric methodology. Land rent (price) had maximum influence and chemical fertilizer price had minimum influence on frontier production cost per hectare. Cost efficiency of wheat production in Iran is suitable and over 90 percent. Surveyed period Khuzestan province had maximum cost efficiency and Yazd province had minimum cost efficiency in wheat production. In whatever province where efficiency is low, agricultural education and knowledge needed to improve further.

Keywords: Crop Production/Industries; International Development (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://ageconsearch.umn.edu/record/164037/files/IJAMADJune2013P123.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:ijamad:164037

DOI: 10.22004/ag.econ.164037

Access Statistics for this article

More articles in International Journal of Agricultural Management and Development (IJAMAD) from Iranian Association of Agricultural Economics Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().