Table 2
Generalized Log-Likelihood Ratio Tests and Parameter Restrictions for the Stochastic Production Frontier and Technical Inefficiency Models, Farm Survey Data, 2004
| Null Hypothesis | Likelihood Ratio |  Statistic | Decision |
|---|---|---|---|
| 1. γ = δ0 = δ1 = δ2 = δ3 = δ4 = δ5 = 0 | 212.99 | 17.76 | Reject H0 |
| 2. γ = 0 | 7.56 | 5.41 | Reject H0 |
| 3. δ0 = δ1 = δ2 = δ3 = δ4 = δ5 = 0 | 212.23 | 16.07 | Reject H0 |
| 4. δ1 = δ2 = δ3 = δ4 = δ5 = 0 | 211.75 | 14.33 | Reject H0 |
Note: The critical values for the hypotheses are obtained from Table 1 of Kodde and Palm (1986).