Abstract: In this study, we propose a hybrid of a stochastic frontier regression. The proposed model and estimation differ from the conventional model of Aigner, Lovell and Schmidt. The model combines a stochastic frontier regression and a random coefficient regression: (a Stochastic Varying Coefficient Frontier Model) (SVCF) to estimate Technical Efficiency (TE) and Single Factor Specific Technical Efficiency (SFTE) of Tunisian farmers for irrigated crops such as: vegetable farming cereal and fruit-trees. The proposed single factor measure of efficiency is based on Kopps notion of non-radial technical efficiency and it is shown that in the context of the SVCF model could provide firm-specific estimates even with inflexible production frontiers, such as the Cobb-Douglas. The empirical results indicate that the mean value of technical efficiency for all farms is estimated to be 54.7% for vegetable farming, 67.2% for cereal and 71.2% for fruit-trees. Input specific technical efficiency of irrigated water is under 40% for all crops.
Tawfik Ben Amor and Mohamed Goaied, 2010. Stochastic Varying Coefficient Frontier Model in the Estimation of Technical Efficiency and Input Specific Technical Efficiency of Irrigated Agriculture in Tunisia. Agricultural Journal, 5: 329-337.