The alpha value (ratio between the variance of the inefficiency model and the total variance) is 0.564; following [ 38 ], this means that about half of the random deviation in production from the frontier is due to technical (in)efficiency, so the inefficiency effects are quite significant in the analysis of the value of output of the farms.
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The Efficiency of Poultry Farms: A Dynamic Analysis Based on a Stochastic Frontier Approach and Panel Data.
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