Smallholder farmers' efficiency has been measured by different scholars using different approaches. Both parametric and non-parametric approaches have been applied; each presenting unique results in some ways. The parametric approach uses econometric approaches to make assumptions about the error terms in the data generation process and also impose functional forms on the production functions. The nonparametric approaches neither impose any functional form nor make assumptions about the error terms. The bottom line of both approaches is to determine efficiency in production. In this study a parametric stochastic frontier approach is used to assess technical, allocative and economic efficiency from a sample of smallholder maize producers of Chongwe District, Zambia. This approach was chosen based on the fact that production among this group of farmers varies a great deal, and so the stochastic frontier attributes part of the variations to the random errors (which reflects measurement errors and statistical noise) and farm specific efficiency. Using a Cobb-Douglas frontier production function which exhibits self dual characteristics, technical efficiency scores for the sample of the smallholder maize producers are derived. With the parameter estimates(âi) obtained from the Cobb-Douglas stochastic production frontier, input prices (âi) and taking advantage of the self dual characteristics of the Cobb-Douglas, a cost function is derived. This forms the basis for calculating the farmers' allocative and economic efficiency. Results obtained from the study showed considerable technical, allocative and economic inefficiencies among smallholder maize producers. Technical Efficiency (TE) estimates range from 40.6 percent to 96.53 percent with a mean efficiency of 78.19 percent, while Allocative Efficiency (AE) estimates range from 33.57 to 92.14 percent with a mean of 61.81. The mean Economic Efficiency (EE) is 47.88 percent, with a minimum being 30 percent and a maximum of 79.26 percent. The results therefore indicate that inefficiency in maize production in Chongwe District is dominated by allocative and economic inefficiency. Additionally, in the two stage regression households characteristics: age; sex; education level; occupation; years in farming; land ownership; household size; access to extension and access to credit services; are regressed against technical efficiency scores using a logit function. Results obtained shows that land ownership, access to credit services, access to extension services, land ownership and education level of up to post primary (secondary and tertiary) have a positive influence on the households' technical efficiency. On the other hand, age of the household head; female headed household and lack of education (though not statistically significant at any confidence level) have a negative influence on this group of maize producers. In a similar two stage regression, access to extension services, membership to producer organisation, access to credit and disaster experienced on the farm such as floods, drought and hail, are regressed against AE. The result shows that access to extension services, access to credit services, membership to cooperatives and natural calamities affect AE. Results therefore show that there is a great deal of both allocative and economic inefficiency among smallholder maize farmers than there is technical inefficiency. To address these inefficiencies observed there is need to design policies that will ensure that environmental (e.g. poor land practices which lead to nutrient depletion from the soils), economic (e.g. high transport cost due to poor road infrastructure) and institutional issues (access to credit) are addressed. In other words, Government should help create credit facilities to provide affordable loans to this group of farmers. Additionally, there is need to improve extension systems to help educate farmers about better farming practices and other innovative technologies to further improve their efficiency in production. Issues of land ownership among this group of farmers needs to be addressed as this will not only raise confidence but will also ensure that their cost of production is reduced since there will be no need for payment of rental charges, and that farmers will adhere to good farming practices knowing they own title to land. Copyright / Dissertation (MSc)--University of Pretoria, 2012. / Agricultural Economics, Extension and Rural Development / unrestricted

Innovation efficiency is a key factor influencing the position of high-tech industries in the global value chain. Through stochastic frontier analysis, innovation efficiency of China's high-tech industry from 2000 to 2016 was estimated and analyzed. Through five random frontier analysis models, innovation efficiency of new product sales revenue and number of patent applications are analyzed. Results show that the overall level of innovation efficiency in China's high-tech industry is not high. Government subsidies for innovation have a positive impact on the R&D results of new product income from China’s high-tech industry, but have a negative impact on the number of patent applications. Scale of enterprise, degree of openness of enterprise, quality of the labor force and export delivery have a positive impact on innovation efficiency of China's high-tech industry. R&D capital stock and R&D human capital stock have a positive effect on high-tech industry innovation. In high-tech industry's transition from patents to new products, there will be a low conversion rate. Results of economic analysis can help the government to make the basis for management decisions. Conclusion of innovation performance analysis provides practical normative guidance for these high-tech industries.

This paper provides a systematic review of the literature that employs stochastic frontier analysis to measure the efficiency of higher education institutions. The overview opens with a look at the general development of the literature, before emphasis is laid on the methodical aspects. Focus is thereby placed on the necessary underlying assumptions and the employed specifications, discussing their advantages and drawbacks. Afterwards, the factors that were specified in the literature, including the input and output variables, as well as the determinants of efficiency, are discussed in detail. Based on the insights of the literature review, the paper highlights some of the existing deficiencies and ways forward. To our knowledge, the present study provides the first systematic review on the usage of the stochastic frontier analysis to measure efficiency in the higher education sector.

The thesis examines technical efficiency using frontier efficiency estimation techniques from parametric and non-parametric approaches. Five different frontier efficiency estimation techniques are considered which are SFA, DFA, DEA-CCR, DEA-BCC and DEA-RAM. These techniques are then used on an artificially generated panel dataset using a two-input two-output production function framework based on characteristics of German life-insurers. The key contribution of the thesis is firstly, a study that uses simulated panel dataset to estimate frontier efficiency techniques and secondly, a research framework that compares multiple frontier efficiency techniques across parametric and non-parametric approaches in the context of simulated panel data. The findings suggest that, as opposed to previous studies, parametric and non-parametric approaches can both generate comparable technical efficiency scores with simulated data. Moreover, techniques from parametric approaches, i.e. SFA and DFA are consistent with each other whereas the same applies to non-parametric approaches, i.e. DEA models. The research study also discusses some important theoretical and methodological implication of the findings and suggests some ways whereby future research can enable to overcome some of the restrictions associated with current approaches.

In this dissertation, I explore a variety of methods for the econometric analysis of firm-level production data. Three distinct approaches are considered, namely i) proxy variable methods of controlling for unobservable productivity, ii) data envelopment techniques for estimating the boundary of a production set, and iii) stochastic frontier methods for estimating the productive inefficiency of firms. Much of the focus is on semiparametric and nonparametric estimators that allow for a highly flexible specification of the function that relates input combinations to output quantities. / Thesis / Doctor of Philosophy (PhD)

Yes / We assess, for the first time in the literature, the impact of green credit on bank efficiency. We find that green credit has a negative impact on bank efficiency. However, the effect is heterogeneous among different types of banks. While small and low capitalized banks are more affected, the impact is lower in banks with higher levels of risk. On the other hand, we find that highly capitalized banks can offset the negative effects of green credit, while large banks and those highly involved in green credit, benefit from this activity.

Evaluations of the Higher Education Sector are receiving increased attention, due to the rising expenditures and the absence of efficiency enhancing market pressure. To what extent universities are able to eliminate inefficiency is a question that has only partially been answered. This paper argues that heterogeneity among universities as well as persistent inefficiency hinder the institutions to achieve full efficiency - at least in the short run. Two standard and one novel specification of the Stochastic Frontier Analysis are applied to a new, comprehensive set of panel data to show how the standard efficiency evaluation changes when both aspects are taken into account. It is the first time that the idea of persistent inefficiency is considered in the analysis of the German Higher Education Sector. The comparison reveals that the disregard of heterogeneity distorts the estimation results towards lower efficiency values. The newly introduced specification improves the accuracy of the heterogeneity assumption and exposes that inefficiency tends to be long term and persistent rather than short term and residual. This implies that increasing efficiency requires a comprehensive change of the university structure.

Evaluations of the Higher Education Sector are receiving increased attention, due to the rising expenditures and the absence of efficiency enhancing market pressure. To what extent universities are able to eliminate inefficiency is a question that has only partially been answered. This paper argues that heterogeneity among universities as well as persistent inefficiency hinder the institutions to achieve full efficiency - at least in the short run. Two standard and one novel specification of the Stochastic Frontier Analysis are applied to a new, comprehensive set of panel data to show how the standard efficiency evaluation changes when both aspects are taken into account. It is the first time that the idea of persistent inefficiency is considered in the analysis of the German Higher Education Sector. The comparison reveals that the disregard of heterogeneity distorts the estimation results towards lower efficiency values. The newly introduced specification improves the accuracy of the heterogeneity assumption and exposes that inefficiency tends to be long term and persistent rather than short term and residual. This implies that increasing efficiency requires a comprehensive change of the university structure.

Despite measures on the European level to increase the compatibility between the HE sectors of the member states, the recent literature exposes variations in their efficiencies. To gain insights into these differences we split the efficiency term according to the two management levels each university is confronted with. Utilizing a recent advancement in the method to measure efficiency, we separate short-term (transient) and long-term (persistent) efficiency, while controlling for unobserved institution specific heterogeneity. While the first term reflects the efficiency of the individual universities working within the country, the second term echoes the influence of the country specific overall HE structure. The cross-country comparison displays if the overall efficiency difference between countries is related to individual performance of their universities or their HE structure. This allows more purposeful policy recommendation and expands the literature regarding the efficiency of universities in a fundamental way. Choosing Italy and Germany as two important illustrative examples we can take advantage of a novel dataset including characteristics of institutions in both countries for an exceptional long period of time from 2001 to 2011. We show that the Italian universities exhibit a higher overall efficiency value than their German counterparts. With the individual universities working at the upper bound of efficiency in both countries, the overall inefficiency as well as the gap between the countries is caused by persistent, structural inefficiency. To expedite a true European Area of Higher Education future measures should hence aim at the country specific structure, not solely at affecting the activities of single universities.

Since the economic reform was initiated in 1978, the Chinese banking sector has undergone significant changes, particularly during the period under our investigation. This is primarily induced by the WTO entry in 2001, which brought in to full openness the financial market in China. The ultimate objective of the recent banking reform is to promote competition and efficiency as a way of improving the overall competitiveness and banking performance, in order to cope with challenges from foreign competitors. With the purpose of examining whether the recent banking reform is effective in achieving the targets as well as suggesting future policy directions, this study investigates market competition, cost efficiency and profitability in the Chinese banking industry over those critical years (1997-2006) before and after the WTO entry. We first employ both structural (the SCP) and non-structural (the Panzar-Rosse) approach to evaluate market competition. Then we estimate cost efficiency for Chinese banks under the Stochastic Frontier Approach (SFA). Finally, we assess the relationship between profitability and market structure under the structure-performance hypothesis and the efficient-structure hypothesis. Our findings show that Chinese banking market become less concentrated and more competitive since the WTO entry. Chinese banks improve their cost efficiencies, with state-owned banks are the least efficient while joint equity banks are the most efficient. The explanation for the relationship between profitability and market structure is quite mixed. The acceptance of which hypothesis depends on which dependent variable is used.