Table 6 SFA estimates of the translog...

Table 6

SFA estimates of the translog production variables

Frontier	Coef. TLi		Coef. TL		Coef. CDi		Coef. CD
Ln cotton area	−0.174	(0.224)	−0.1889	(0.214)	−0.016	(0.017)	−0.007	(0.018)
Ln labours	0.030	(0.208)	0.102	(0.190)	−0.059**	(0.024)	−0.063***	(0.023)
Ln oil costs/ha	−0.221	(0.170)	−0.302*	(0.163)	0.058***	(0.021)	0.047**	(0.021)
Ln machine costs/ha	0.096	(0.111)	0.124	(0.105)	−0.023*	(0.013)	−0.022*	(0.013)
Ln fertiliser costs NPK/ha	0.374***	(0.147)	0.499***	(0.147)	0.120***	(0.029)	0.137***	(0.029)
Soil quality (fertility)	0.077**	(0.036)	0.117***	(0.037)	0.088**	(0.037)	0.126***	(0.037)
Country dummy	0.336***	(0.056)	0.268***	(0.052)	0.351***	(0.048)	0.264***	(0.044)
Ln area sq	0.050*	(0.030)	0.050	(0.033)
Ln labour sq	0.015	(0.046)	0.010	(0.043)
Ln oil costs/ha sq	0.074**	(0.035)	0.066**	(0.034)
Ln machine costs/ha sq	0.001	(0.007)	−0.004	(0.007)
Ln fertiliser costs NPK/ha sq	−0.076**	(0.034)	−0.100***	(0.034)
Ln area*lab	0.000	(0.026)	−0.001	(0.026)
Ln area*oil	0.048	(0.033)	0.060*	(0.032)
Ln area*mach	−0.018	(0.017)	−0.017	(0.016)
Ln area*ferti	−0.013	(0.031)	−0.017	(0.030)
Ln lab*oil	−0.035	(0.029)	−0.039	(0.028)
Ln lab*mach	0.004	(0.018)	0.003	(0.016)
Ln lab*ferti	0.001	(0.041)	−0.009	(0.039)
Ln oil*mach	−0.031**	(0.015)	−0.026*	(0.014)
Ln oil*ferti	0.018	(0.034)	0.032	(0.034)
Ln mach*ferti	0.008	(0.021)	0.001	(0.020)
Constant	6.366***	(0.543)	6.127***	(0.524)	6.574***	(0.154)	6.534***	(0.155)
N = 511
Wald $χ^{2}$ (22) of TLi/TL	133.11***		110.63***
Wald $χ^{2}$ (7) of CDi/CD					93.16***		72.05***
Log likelihood	−235.472		−256.694		−247.578		−269.84
Gamma	0.82		0.82		0.81		0.80
Mean technical efficiency	0.65		0.64		0.65		0.64

Frontier	Coef. TLi		Coef. TL		Coef. CDi		Coef. CD
Ln cotton area	−0.174	(0.224)	−0.1889	(0.214)	−0.016	(0.017)	−0.007	(0.018)
Ln labours	0.030	(0.208)	0.102	(0.190)	−0.059**	(0.024)	−0.063***	(0.023)
Ln oil costs/ha	−0.221	(0.170)	−0.302*	(0.163)	0.058***	(0.021)	0.047**	(0.021)
Ln machine costs/ha	0.096	(0.111)	0.124	(0.105)	−0.023*	(0.013)	−0.022*	(0.013)
Ln fertiliser costs NPK/ha	0.374***	(0.147)	0.499***	(0.147)	0.120***	(0.029)	0.137***	(0.029)
Soil quality (fertility)	0.077**	(0.036)	0.117***	(0.037)	0.088**	(0.037)	0.126***	(0.037)
Country dummy	0.336***	(0.056)	0.268***	(0.052)	0.351***	(0.048)	0.264***	(0.044)
Ln area sq	0.050*	(0.030)	0.050	(0.033)
Ln labour sq	0.015	(0.046)	0.010	(0.043)
Ln oil costs/ha sq	0.074**	(0.035)	0.066**	(0.034)
Ln machine costs/ha sq	0.001	(0.007)	−0.004	(0.007)
Ln fertiliser costs NPK/ha sq	−0.076**	(0.034)	−0.100***	(0.034)
Ln area*lab	0.000	(0.026)	−0.001	(0.026)
Ln area*oil	0.048	(0.033)	0.060*	(0.032)
Ln area*mach	−0.018	(0.017)	−0.017	(0.016)
Ln area*ferti	−0.013	(0.031)	−0.017	(0.030)
Ln lab*oil	−0.035	(0.029)	−0.039	(0.028)
Ln lab*mach	0.004	(0.018)	0.003	(0.016)
Ln lab*ferti	0.001	(0.041)	−0.009	(0.039)
Ln oil*mach	−0.031**	(0.015)	−0.026*	(0.014)
Ln oil*ferti	0.018	(0.034)	0.032	(0.034)
Ln mach*ferti	0.008	(0.021)	0.001	(0.020)
Constant	6.366***	(0.543)	6.127***	(0.524)	6.574***	(0.154)	6.534***	(0.155)
N = 511
Wald $χ^{2}$ (22) of TLi/TL	133.11***		110.63***
Wald $χ^{2}$ (7) of CDi/CD					93.16***		72.05***
Log likelihood	−235.472		−256.694		−247.578		−269.84
Gamma	0.82		0.82		0.81		0.80
Mean technical efficiency	0.65		0.64		0.65		0.64

Note(s): Translog (TL) TLi was preferred over Cobb-Douglas (CD) CDi. The TLi final model simultaneously estimates production and inefficiency variables; inefficiency estimates of TLi presented in Table 3. TL and CD are restricted models, without inefficiency variables. Standard errors are in parenthesis. The level of significance is ***p < 0.01, **p < 0.05, *p < 0.1

Source(s): Table created by authors

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