Comparison of Cobb-Douglas and Translog frontier models in the analysis of technical efficiency in dry-season tomato production

Umar, H.S.; Girei, A. A.; Yakubu, D. H.

doi:10.4314/agrosh.v17i2.6

Cited by 12 publications

(13 citation statements)

References 8 publications

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“…Cobb–Douglas and translog functions) forms arbitrarily (Greene, 2008). Literature suggests that average efficiency scores are very sensitive to the imposition of the different assumptions about both the distribution for inefficiency term and the functional forms (Umar et al , 2017; Cummins and Zi, 1998). In addition, the log transformation of both output and inputs for Cobb–Douglas or translog SFA functions would drop some observations as often the “value addition” variable includes zero value for nonpositive value addition.…”

Section: Methodsmentioning

confidence: 99%

How does farmers' field schooling impact eco-efficiency? Empirical evidence from paddy farmers in Bangladesh

Islam

Ferdousy

Afrin

et al. 2020

CAER

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PurposeRecent studies suggest extensive use of environmental resources in agrofarming degrades ecosystem significantly. In this backdrop, this study aims at assessing ecoefficiency of paddy farming. Because ecoefficiency links up between economic performances and environmental resources supporting the provision of goods and services for the society, this study further investigates the effectiveness of attending Farmers' Field School (FFS), an agroenvironmental program, in conserving environmental resources through improving farm-level ecoefficiency.Design/methodology/approachIn a dataset of 200 randomly selected paddy farmers from three districts of the southwestern Bangladesh, data envelopment analysis (DEA) is applied to compute both radial and pressure-specific (nutrient balance, energy balance, irrigation and pesticide lethal risk) ecoefficiency scores. Furthermore, propensity score matching (PSM) technique is applied to examine the impact of FFS program on farm-level ecoefficiency.FindingsThe DEA results suggest that paddy farmers are highly eco-inefficient. The computed radial eco-efficiency score is 0.40 implying farmers could reduce around 60% of environmental pressure equiproportionally even by maintaining the same level of value addition. In addition, the PSM results suggest farmers' participation in FFS program led to around 22.5% higher radial ecoefficiency and 7–25% higher environmental pressure-specific eco-efficiencies. Furthermore, simulation exercises reveal that FFS participation in interaction with farm size would lead to around 32–40% reduction of all environmental pressures.Practical implicationsPromoting FFS programs among paddy farmers could be an effective policy option to improve eco-efficiency through environment-friendly farming paradigm.Originality/valueThis study is probably the maiden effort that has examined the impact of attending the FFS program on ecoefficiency improvement in Bangladesh. This study contributes to both the concern literature by adding useful information and the policymakers by providing new insights about the reduction of environmental resource usage with maintaining the same value addition from agrofarming.

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Section: Methodsmentioning

confidence: 99%

How does farmers' field schooling impact eco-efficiency? Empirical evidence from paddy farmers in Bangladesh

Islam

Ferdousy

Afrin

et al. 2020

CAER

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“…This implies significant difference in estimated efficiency scores generated from the two models. The significant difference in efficiency score estimates between the two models (68% for Cobb-Douglas and 59% for Translog) agreed with the findings of Umar et al (2017) and Thiam et al (2001). Similarly, Nyagaka et al (2009) applied Ordinary Least Square (OLS) production function and maximum likelihood estimates (MLE) of the Cobb-Douglas function in estimating the economic efficiency of potato farmers in Kenya and came up with efficiency scores that were significantly different across the two frontier models.…”

Section: Hypothesis Testingmentioning

confidence: 53%

“…However, there exist contradiction among researchers in respect of similarity or otherwise of technical efficiency estimates obtained using Cobb-Douglas and Translog frontier models. While Thiam et al (2001) and Umar et al (2017) observed that the average technical efficiency score from Cobb-Douglas function was significantly different from those of Translog function, Ahmad and Bravo-Ureta (1996) argued that there was no much difference in the results obtained from the two functional forms.…”

Section: Introductionmentioning

confidence: 95%

“…In measuring technical efficiency, different methodologies have been proposed and considerable controversy has surrounded the choice and merits of a specific methodology and the impact of such choice on the ensuing analysis (Olesen et al, 1996;Coelli and Perelman, 1999). Stochastic frontier models specified in the functional form of Cobb-Douglas or Transcendental logarithm (translog) have been widely applied in estimating farm production efficiency using the Maximum likelihood estimates (Adenuga et al, 2013;Aminu et al, 2013;Zalkuw, et al, 2014;Shettima et al, 2015;Umar et al, 2017). However, there exist contradiction among researchers in respect of similarity or otherwise of technical efficiency estimates obtained using Cobb-Douglas and Translog frontier models.…”

Section: Introductionmentioning

confidence: 99%

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Performance of Translog and Cobb-Douglas models in the estimation of technical efficiency of Irish potato production in Plateau State, Nigeria

Uche¹,

Umar²,

Girei³

et al. 2021

Agro-Sci.

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The study compared the performance of Cobb-Douglas and Translog frontier models in the analysis of technical efficiency in Irish potato production in Plateau State. A multistage sampling technique was employed to select 180 respondents for the study. Data were analyzed using stochastic frontier model in the Cobb-Douglas and the Translog functional forms. Results revealed that farm size and seed had positive and significant coefficients under the Cobb-Douglas model. However, estimated Translog model showed that, while farm size and labour had negative relationships with output, fertilizer had a positive relationship. The elasticity estimates from both frontier models show that Irish potato farmers were operating at an increasing return to scale. The mean technical efficiency estimates were 68% and 59% for Cobb-Douglas and Translog models respectively. Hypothesis testing showed that there was a significant difference in the technicalefficiency estimates between the Cobb-Douglas and Translog frontier models. The inefficiency estimates revealed that education, household size and extension reduced inefficiency while farming experience increased inefficiency under the Cobb-Douglas model. None of the socioeconomics variables analysed in the Translog model for inefficiency was significant. It is recommended that training of the farmers on the optimum rate of input utilization and combination should be organized. The Cobb-Douglas model provided better results, in terms of economic and statistical properties of the coefficients, and therefore recommended for the estimation of technical efficiency of Irish potato farms in the study area. Key words: Cobb-Douglas, performance, technical efficiency, translog

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“…the Cobb-Douglas production function to the data obtained from the Yearly Micro and Small Manufacturing Industry Survey (Survei IMK Tahunan), 2019 and 2020, conducted by BPS Province of Bali. This model has been widely used to measure the performance of technical efficiency on many fields, e.g.enterprises (Walujadi, 2004;Bohorquez & Esteves, 2008;Mahmood, 2008;Radam, Abu, & Abdullah, 2008;Barbera & Moores, 2013;Hartšenko & Sauga, 2013;Charoenrat, 2014;Noor & Siang, 2014;Prastiwi, Ayutyas, Ayunigtyas, & Saputri, 2017;Pinkovetskaia, 2018;Dagvadorj & Bo, 2019;Mbusya, 2019;Ouedraogo & Gansonre, 2020;Thuy, Le, Cuong, & Thi, 2020;), banks (Hasan, Kamil, Mustafa, & Baten, 2012;Hossain, Hossain, & Baten, 2016;Agustina, Sholihin, & Fithria, 2019;), agriculture (Trujillo & Iglesias, 2013;Mango, Makate, Hanyani-Mlambo, Siziba, & Lundy, 2015;Najjuma, Kavoi, & Mbeche, 2016;Umar, Girei, & Yakubu, 2017;Hakim, Haryanto, & Sari, 2020;Tenaye, 2020;Yilmaz, Gelaw, & Speelman, 2020;Vasyl'yeva, 2021), and macroeconomic indicators (Apostolov, 2016;Izgi et al, 2020). The total revenue would be modeled with the production inputs or factors relevant to the technical efficiency of the enterprise, such as fixed capital and labor.…”

Section: Introductionmentioning

confidence: 99%

Performance of Manufacturing MSEs in Bali Amidst the Covid-19 Pandemic

Purwa

2022

EDAJ

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This study measured the impact of Covid-19 on the total revenue of manufacturing micro and small enterprises (MSEs) in Bali, in aggregate and specifically by each type of 2-digit ISIC. Using the Cobb-Douglas model, the impact of fixed capital, the number of labors, and factors related to technical inefficiency were also evaluated. According to the findings, total revenue decreased by about one-fifth during the pandemic. Specifically, the significant impact was experienced by MSEs with 2-digit ISIC: 11 and 13 in the form of a positive impact and 14 in the form of a negative impact. As expected, the two input factors had positive elasticity on the total revenue. Education is the only non-statistically significant factor associated with technical inefficiency. MSEs with male entrepreneurs, productive age groups, capital that is not dominated by own capital, applying for a loan from people's business loans (KUR), and using the internet in the business process tend to perform better. Overall, technical efficiency before and during the pandemic is comparable, ranging between 40 and 80, while the decreasing distributional pattern of technical efficiency shows for some 2-digit ISIC

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Comparison of Cobb-Douglas and Translog frontier models in the analysis of technical efficiency in dry-season tomato production

Cited by 12 publications

References 8 publications

How does farmers' field schooling impact eco-efficiency? Empirical evidence from paddy farmers in Bangladesh

How does farmers' field schooling impact eco-efficiency? Empirical evidence from paddy farmers in Bangladesh

Performance of Translog and Cobb-Douglas models in the estimation of technical efficiency of Irish potato production in Plateau State, Nigeria

Performance of Manufacturing MSEs in Bali Amidst the Covid-19 Pandemic

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