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A Comparison of Panel Data Models in Estimating Technical Efficiency

Masoomeh Rashidghalam (), Almas Heshmati (), Ghader Dashti () and Esmail Pishbahar ()
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Ghader Dashti: University of Tabriz
Esmail Pishbahar: University of Tabriz

No 9807, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: The purpose of this paper is two-fold. First, it compares the performance of various panel data models in estimating technical efficiency in production. Second, it applies various stochastic frontier panel data models to estimate the technical efficiency of Iran's cotton production and to provide empirical evidence on the sources of technical inefficiency of cotton producing provinces. The results indicate that labor and seeds are determinants of cotton production and inorganic fertilizers result in reducing technical efficiency. The mean technical efficiency of the models is around 80 percent. Variations in the distribution of estimated efficiency amongst the different models is large.

Keywords: technical efficiency; labor use; panel data modeling; time-variant; persistent inefficiency; individual heterogeneity; model comparison; cotton production; Iran (search for similar items in EconPapers)
JEL-codes: C23 D24 Q12 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2016-03
New Economics Papers: this item is included in nep-agr, nep-cwa and nep-eff
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