Template-Type: ReDIF-Article 1.0
Author-Name: Hojjat Zabih Haghighi Rabbani
Author-Name-First: Hojjat
Author-Name-Last: Zabih Haghighi Rabbani
Author-Email: haghighihojat1355@gmail.com
Author-Workplace-Name: PhD Student, Department of Agricultural Economics, Agricultural Policy and Development, Roudehen Branch, Islamic Azad University, Roudehen, Iran
Author-Name: Leila Vaezi
Author-Name-First: Leila
Author-Name-Last: Vaezi
Author-Email: 1377364631@iau.ir
Author-Workplace-Name: Department of Agricultural Economics, Agricultural Policy and Development, Ro.C., Islamic Azad University, Roudehen, Iran
Author-Name: Saeed Safari Dolatabad
Author-Name-First: Saeed
Author-Name-Last: Safari Dolatabad
Author-Email: 4230351631@iau.ir
Author-Workplace-Name: Department of Plant Genetics and Breeding, Roudehen Branch, Islamic Azad University, Roudehen, Iran
Title: Estimation of Red Meat Production Efficiency with an Emphasis on Separating Unobserved Heterogeneity from Efficiency: An Inter-Provincial TRE Approach
Abstract: In conventional stochastic frontier (SF) models, the inefficiency term is assumed to be constant over time; however, in reality, inefficiency is time-dependent due to policy changes. Another issue with standard SF models is that when panel data and cross-sectional heterogeneity are utilized, fixed and random effects are confounded with the inefficiency term and are not adequately accounted for in the model, resulting in the inefficiency term being estimated as bias. Therefore, the objective of this paper is to address these two issues in estimating the stochastic production function for red meat across Iranian provinces. Specifically, the cross-sectional units comprise 32 Iranian provinces, and the corresponding time series cover annual data from 2004 to 2021. The True Random Effects (TRE) model is estimated and compared with previous models that suffered from these two issues, and its superiority is confirmed through the Wald test. The three most efficient provinces in terms of red meat production are Ilam, Kurdistan, and Kerman, respectively, while the three least efficient provinces are Khorasan Razavi, Golestan, and Tehran. The provinces that have experienced a continuous decrease in red meat distribution inefficiency include Khuzestan, Zanjan, Sistan and Baluchestan, East Azerbaijan, Alborz, Isfahan, Bushehr, Tehran, and North Khorasan. Conversely, several provinces, including Semnan and Chaharmahal and Bakhtiari, have exhibited an increasing trend in inefficiency.
Classification-JEL: JEL
Keywords: Stochastic Frontier; Cross-Sectional Heterogeneity; Red Meat Production; Technical Efficiency; Inefficiency Effects
Journal: International Journal of Resistive Economics
Pages: 53-73
Volume: 11
Issue: 4
Year: 2023
Month: November
DOI: 10.220.34.2023.46
File-URL: https://www.oajre.ir/article_246787_ad3e070bdddde7a3f8024758de7540fa.pdf
File-Format: Application/pdf
File-Function: Full text
File-URL: https://www.oajre.ir/article_246787.html
File-Format: text/html
File-Function: Abstract page
Handle: RePEc:trd:journl:246787