Table 1.
Farm inputs (labour, capital and land), total revenue and land-use diversity per production line.
Fig 1.
The stochastic production frontier [61–62].
Observed productions and frontier productions are indicated with x and o, respectively. The frontier production (FP), consisted of observed production, inefficiency effect and random noise, can lie above or below the frontier prodution function (PF), depending on the noise effect.
Table 2.
Pearson correlation matrix of land-use diversity, total revenue and inputs (labour, farm capital and land).
Table 3.
Comparison of the Cobb-Douglas regression (H0) and stochastic frontier Cobb-Douglas (H1) and translog (H2) production models.
Table 4.
Maximum-likelihood estimates of the land-use diversity of the stochastic frontier Cobb-Douglas production models.
Table 5.
Maximum-likelihood estimates of the stochastic frontier translog production models for years 2001, 2002 and 2005.
Fig 2.
Dependence of resource-use efficiency on land-use diversity.
Estimated elasticities of land-use diversity and inputs in years 2000–2002 and 2004–2006 summarised based on the results of the adequate model for each year. The elasticities illustrate the dependence of resource-use efficiency on land-use diversity and inputs. The small negative elasticities of in 2004 and 2006 indicate that a 10% increase in land-use diversity, with an average input use, would result in approximately half a percentage decrease in total revenue. The positive elasticities indicate increase in total revenue by increasing inputs. UAA = utilised agricultural area.