Research Article

Technical Efficiency of Ginger Production in Ilam District of Nepal: A Stochastic Production Frontier Approach

Table 2

Maximum likelihood estimates of stochastic frontier production function for ginger farming.

VariablesCoefficientStandard errorz value

Constant term3.4230.21216.08≤0.001
Seed0.8640.53216.25≤0.001
Farmyard manure0.9530.4162.290.022
Chemical fertilizers−0.0060.164−0.410.685
Human labour−0.6440.846−7.61≤0.001
Bullock labour−0.0830.522−1.610.108
Variance parameters
Sigma 0.1050.039
Sigma 0.4350.054
Sigma20.2000.042
Lambda4.1420.086
Gamma0.805
Observations = 100
Wald Chi2 (5) = 423.58
Prob > Chi2 = 0.000
Log likelihood = −9.293

, , and indicate statistical significance at 1%, 5%, and 10% probability level, respectively.