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Entropy 2011, 13(11), 1916-1927; doi:10.3390/e13111916
Article

A Generalized Maximum Entropy Stochastic Frontier Measuring Productivity Accounting for Spatial Dependency

1,*  and 2
1 LEI, Part of Wageningen UR, PO Box 29703, The Hague 2585 DB, The Netherlands 2 International Rice Research Institute, DAPO Box 7777, Metro Manila 1301, The Philippines
* Author to whom correspondence should be addressed.
Received: 29 September 2011 / Revised: 17 October 2011 / Accepted: 24 October 2011 / Published: 28 October 2011
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Abstract

In this paper, a stochastic frontier model accounting for spatial dependency is developed using generalized maximum entropy estimation. An application is made for measuring total factor productivity in European agriculture. The empirical results show that agricultural productivity growth in Europe is driven by upward movements of technology over time through technological developments. Results are then compared for a situation in which spatial dependency in the technical inefficiency effects is not accounted.
Keywords: stochastic frontier; spatial dependency; generalized maximum entropy stochastic frontier; spatial dependency; generalized maximum entropy
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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Tonini, A.; Pede, V. A Generalized Maximum Entropy Stochastic Frontier Measuring Productivity Accounting for Spatial Dependency. Entropy 2011, 13, 1916-1927.

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