Analysis of agricultural production in Asia and measurement of technical efficiency using copula-based stochastic frontier quantile model

Abstract

© Springer International Publishing AG 2016. The purpose of this paper is to evaluate the efficiency of agricultural production in Asia and analyze the production function of Asian countries. Methodologically, we employ the stochastic frontier model with the concern about dependency between two-sided error term and one-sided inefficiency. Likewise, we try to improve the performance of the standard stochastic frontier model by applying quantile regression to the frontier production function. Therefore, this paper introduces the model called Copula-based stochastic frontier quantile model as an alternative tool for this issue. The accuracy of this model is proved through a simulation study before applying to the agricultural production data of Asia.