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Single measures of farm‐specific technical efficiency over time are calculated for rice farms in Central Luzon, the Philippines, from the residuals of a stochastic frontier production function. Panel data from the International Rice Research Institute's periodic “Loop Survey” are used. Results show a narrow range of efficiency between 84% and 95% across the twenty‐two farms, so that there is limited scope for increasing output by resource reallocation. A comparison is made with measures of technical efficiency using traditional covariance analysis.
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Dawson et al. (1991) studied this question.
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