Table 6

Parameter Estimates of the Stochastic Production Frontier and Technical Inefficiency Models for VHLSS Data, 2004 (Equations [12] and [13])

CoefficientT-Ratio
Stochastic Production Frontier Model
Constant6.40 (0.072)89.50
Capital rented (KR) (ln)0.09 (0.006)17.30
Labor (LAB) (ln)0.03 (0.006)4.79
Hired labor (HLAB) (ln)0.02 (0.003)7.84
Land (LAN) (ln)0.52 (0.009)56.76
Fertilizer (F) (ln)0.16 (0.006)27.47
Pesticide (P) (ln)0.08 (0.005)16.92
Mekong River Delta (MRD)0.21 (0.022)9.80
Technical Inefficiency Model
Constant-2.28 (0.562)-4.06
Education (ED)-0.07 (0.015)-4.62
Fragmentation (FRAG)0.25 (0.100)2.48
Ratio of land with LUC (CERT)-0.24 (0.075)-3.19
Soil (SOIL)0.48 (0.084)5.74
Access to extension services (EXT)-0.08 (0.041)-1.98
Credit (CRE) (ln)-0.07 (0.026)-2.49
Gamma0.8842.55
Sigma squared0.526.02
Log-likelihood-1,315.25
Mean efficiency (%)77.49
Number of observations3,671
  • Note: All coefficients are significant at the 0.01 level except access to extension services (EXT), which is significant at the 0.05 level. Standard errors are in parentheses.