An Application and Test for a Random Coefficient Model in Bangladesh Agriculture.

The paper deals with efficiency questions by estimating four production functions for four different regions in connection with Bangladesh agriculture. Hildreth and Houck's (1968) random coefficient method was found more suitable than OLS after conducting an appropriate test for this. In contrast to earlier studies, 24 piece-wise regressions have been fitted for each index of efficiency considering all four regions and six different ranges of farm size instead of a single regression so that the relationship could be studied more closely. The study clearly indicates higher efficiency for smaller farms. Copyright 1991 by John Wiley & Sons, Ltd.