Comparative Analysis of Stochastic Frontier Partially non-parametric and Stochastic Frontier Parametric Methods Case Study: Measuring Cost Efficiency in Wheat Production in Iran
محورهای موضوعی : Environmental policy and management
Ebrahim Moradi
1
(Ph.D. Student, University of Sistan and Baluchestan, Iran)
Mosayeb Pahlavani
2
(Associate Professor, University of Sistan and Baluchestan, Iran)
Ahmad Akbari
3
(Professor, University of Sistan and Baluchestan, Iran)
Hossain Mehrabi Bashrabadi
4
(Professor, University of Bahonar Kerman, Iran)
کلید واژه: Iran, Cost efficiency, Partially Non- Parametric Method, Stochastic Frontier Method,
چکیده مقاله :
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.
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.
