Estimation of technical efficiency in production technologies of Czech sawmills
Research subject and fields:
The main aim of this paper is to determine the influence of the type of adopted production technology on the technical efficiency of Czech sawmills, using one-year data of sawmills and applying a stochastic frontier production function model. Individual technical efficiencies have been obtained for small, medium and large sawmills, and their determinants have been estimated using a procedure proposed by Battese and Coelli (1995). The results support the hypothesis that sawmills in the sample failed to achieve full technical efficiency.