Estimation of technical efficiency in production technologies of Czech sawmills

Abstract

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.

Keywords

• technical efficiency
• frontier production function
• wood-processing industry