Skills, Partnerships and Tenancy in Sri Lankan Rice Farms



Table 2: Stochastic Production Frontier and Technical Efficiency Estimates

One Step MLE

Fertilizer Endog.

Two Step

Linear Prod. Fun

coeff.

t-stat

coeff.

t-stat

coeff.

t-stat

coeff.

t-stat

Production Frontier

constant

4.5707

45.32

4.3215

87.55

4.6099

79.46

3.6076

19.59

land

0.4941

25.37

0.5022

38.45

0.4592

37.15

0.4281

16.59

labor

0.2094

15.17

0.1780

18.17

0.2417

28.01

0.3175

20.64

fertilizer

0.0780

8.64

0.0782

52.59

0.0759

13.29

0.0861

7.59

seeds

0.1448

9.38

0.2067

24.03

0.1606

19.38

0.1888

10.16

machines

0.0624

14.54

0.1838

7.98

0.1166

4.47

0.1788

5.88

chemicals

0.0792

2.86

0.0561

16.42

0.0599

18.35

0.0662

13.02

bullocks

-0.0104

-0.96

0.0399

4.29

-0.0002

-0.02

0.0848

6.77

irrigation

0.2132

5.90

0.3702

13.72

0.1912

6.82

0.0596

1.48

Efficiency Equation

constant

4.1910

3.72

6.4290

3.88

0.5100

16.76

land owned - paddy

0.1290

5.22

0.2433

8.12

0.0033

2.08

0.0148

1.31

land owned - highland

0.1037

4.86

0.0076

0.13

0.0014

1.70

0.0066

1.53

household size

-0.0540

-2.50

-0.0346

-0.57

-0.0012

-1.14

-0.0065

-1.04

male adults (%)

-1.5427

-3.44

-0.7295

-0.97

0.0078

0.66

0.0503

0.72

female adults (%)

-0.6098

-1.28

-0.0605

-0.07

0.0138

1.08

-0.0106

-0.14

ethnic group

1.1951

1.91

0.4982

0.55

-0.0037

-0.24

-0.0278

-0.33

age of head

-0.0637

-2.02

0.4624

0.40

-0.0011

-1.19

-0.0061

-1.13

age squared

0.0001

0.51

-0.0489

-1.22

0.0000

0.44

0.0000

0.12

education of head

-0.3590

-6.59

-0.4128

-3.05

-0.0041

-2.16

-0.0336

-3.00

education squared

0.0330

7.23

0.0347

3.06

0.0005

3.28

0.0029

3.34

sex of head

0.5177

3.74

0.8964

2.24

0.0123

2.01

0.0244

0.69

% with primary educ.

3.0879

7.62

2.0168

2.73

0.0253

2.06

0.0395

0.55

bullocks owned

0.0731

11.44

0.1100

0.84

0.0039

3.27

0.0026

0.38

tractors owned

1.0970

2.80

0.6722

0.73

-0.0066

-0.77

-0.0015

-0.03

cattle owned

0.3361

4.92

0.2537

1.42

0.0011

0.40

-0.0173

-1.12

vehicles owned

0.1207

20.14

0.0604

2.27

0.0019

0.99

0.0056

0.58

% of students

-0.9295

-2.33

-0.7754

-1.19

0.0005

0.04

0.0608

0.87

agricultural household

0.8127

5.11

0.8613

2.16

0.0209

3.80

0.1145

3.29

fisheries and livestock

0.0598

0.59

0.0555

0.23

-0.0139

-3.21

-0.0370

-1.43

employer

0.1067

0.66

-0.0002

-0.49

0.0129

1.50

0.0403

0.83

govt. employee

0.2366

1.99

-0.2799

-0.63

0.0103

1.73

0.0469

1.33

self employed

1.1198

6.87

0.1930

0.60

0.0137

2.08

0.0912

2.22

sigma-squared

3.7620

10.14

1.9850

41.788

sigma-v

0.4118

51.80

sigma-t

2.2208

3.66

sigma-g

1.0167

92.93

gamma

0.9386

139.25

1.0457

151.46

log likelihood

-4836.4

-14285.8

(1) -8522.55

r-squared

(2) 0.02096

0.6143

no. of observations

4811

4811

4811

4811

NOTE: Estimates are not reported for the 17 district dummy variables in both equations.

55



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