농가 이질성과 생산기술효율성

Farm Heterogeneity and Technical Efficiency: A Bayesian Stochastic Frontier Analysis

This study constructs a multiple error component Bayesian stochastic frontier model to analyze production efficiencies of Korean farm households incorporating farm heterogeneity. A sampled data set of 400 farms for the period 2008-2012 is used. The analysis combines a Bayesian random effect multilevel/hierarchical model with a panel data stochastic frontier model. The results show that the usual SFA models without incorporating producer heterogeneity substantially over-estimate the level and dispersion of farm technical inefficiencies. It is also found that incorporating producer heterogeneity into the production frontier reduces the contribution of technical efficiency change to productivity change significantly. The study identifies the sources of frontier heterogeneity using the constructed multiple error component Bayesian SFA model.