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Table 5 MLE of the Cobb–Douglas SFP with various distributions of inefficiency term

From: Analysis of technical efficiency in maize production in Guji Zone: stochastic frontier model

Variable Truncated normal distribution Exponential distribution Half normal distribution
logMZO
 logFRH 0.26212167***
0.050
0.26210081***
0.050
0.26504656***
0.050
 logMWR 0.08555118
0.051
0.08555151
0.051
0.08578216
0.052
 logMPR 0.23795927***
0.063
0.23796861***
0.063
0.24015062***
0.063
 logOHH 0.27597429***
0.053
0.27596657***
0.053
0.27548877***
0.053
 logMHH 0.11967841*
0.048
0.11967462*
0.048
0.11629394*
0.048
 logMIH 0.1169028**
0.040
0.11696768**
0.040
0.11222277**
0.040
 logLMZ 0.88538574***
0.037
0.88538586***
0.037
0.88488959***
0.037
 _cons −0.00900501
0.269
−0.00940861
0.269
0.04560349
0.269
Mu    
 _cons −28.857753   
Ilgtgamma    
 _cons 4.6645695   
lnsigma2    
 _cons 0.86329367   
lnsig2v    
 _cons −3.8095515*** −3.7442453*** −3.7442453***
lnsig2u    
 _cons −5.037093*** −3.9101573*** −3.9101573***
Legend *p < 0.001   
  H0: No inefficiency component: z = −1.041 Prob < = z = 0.049 Likelihood-ratio test of sigma_u = 0: chibar2(01) = 1.68 Prob > = chibar2 = 0.027 Likelihood-ratio test of sigma_u = 0: chibar2(01) = 1.16 Prob > = chibar2 = 0.014
  1. Source: Own estimation.
  2. *, **, and *** means significant at 10, 5, and 1%, respectively