Alias bin Radam and Ismail bin Latiff
Pertanika Journal of Social Science and Humanities, Volume 4, Issue 1, March 1996
Keywords: Frontier production function, allocative efficiency, technical efficiency and economic efficiency.
Published on:
Economic efficiency can be measured as allocative and technical efficiency. A study to measure the technical, allocative and economic efficiency of paddy farms using the probabilistic frontier production function was carried out. Results showed that the sample paddy farmers under study are economiclly inefficient. There is still in technical efficiency a 15 percent potential for in-creasing the output of farmers, and a 35 percent potential in allocative efficiency to increase output optimally. The government should therefore play a part in directing education, extension, and social change and provide institutional support in order to improve the farmers’ efficiency technically and allocatively.
ISSN 0128-7702
e-ISSN 2231-8534
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