Measurement and determinants of efficiency in crop production in Nepal

Our study is an attempt to quantify efficiency of farmers and estimate the gap from its potential given the technology currently prevailing in Nepal. To estimate inefficiency in agriculture, we use a stochastic frontier production function. We also use OLS to compare the results for the Cobb-Douglas and translogarithmic functions to determine which of the two provides a better representation of the data. It is also interesting to examine what these functions yield for the levels of technical inefficiencies, returns to scale, and the elasticities of output with respect to different inputs