Tests of the null hypothesis of the SFA translog production function
| Null hypothesis | Log likelihood | Test statistics | C.V. | d.f. | Decision |
|---|---|---|---|---|---|
| H0: Cobb – Douglas (CD vs TL) | −256.69 | 26.29** | 24.38 | 15 | Rejected |
| H0: Cobb – Douglas (CDi vs TLi) | −235.47 | 24.21* | 21.71 | 15 | Rejected |
| H0: No effects of cotton combine | −235.47 | 55.35*** | 9.50 | 1 | Rejected |
| H0: No effects of determinants of inefficiencies | −235.47 | 42.44*** | 5 | Rejected | |
| H0: No inefficiency component | −247.93 | −17.09*** | Rejected |
| Null hypothesis | Log likelihood | Test statistics | C.V. | d.f. | Decision |
|---|---|---|---|---|---|
| H0: Cobb – Douglas (CD vs TL) | −256.69 | 26.29** | 24.38 | 15 | Rejected |
| H0: Cobb – Douglas (CDi vs TLi) | −235.47 | 24.21* | 21.71 | 15 | Rejected |
| H0: No effects of cotton combine | −235.47 | 55.35*** | 9.50 | 1 | Rejected |
| H0: No effects of determinants of inefficiencies | −235.47 | 42.44*** | 5 | Rejected | |
| H0: No inefficiency component | −247.93 | −17.09*** | Rejected |
Note(s): C.V. is a critical value for the specified degrees of freedom (d.f.), taken from Kodde and Palm (1986). The level of significance is ***p < 0.01, **p < 0.05, *p < 0.1
Source(s): Table created by authors
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