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Table 2 Hypothesis testing for the adopted model

From: Technical efficiency in the sheep dairy industry: an application on the Sardinian (Italy) sector

Restrictions Model L(H 0 ) λ d.f. χ 0.95 2 Decision
None Translog, non neutral 32.31     
H0 : β1t;β2t;β3t = 0 Hicks-neutral technical change 24.77 15.06 3 7.82 Rejected
H0 : βt,β1t,β2t,β3t,βtt= 0 No technical change 20.86 22.89 5 11.67 Rejected
H0 : βp, = 0 Technological homogeneity 30.85 2.90 1 3.84 Not reject
H0 : β ij = 0 Cobb-Douglas 23.71 17.19 10 18.31 Not reject
None Cobb Douglas 23.71     
H0 : δ 2 ; δ 3 ; δ 4 = 0 Neutral 17.73 11.96 3 7.82 Rejected
H0 : γ = δ1;…δn = 0 No inefficiency effects 20.82 5.77 6 11.91* Rejected
H0 : γ = δ0; δ 2 ; δ 3 ; δ 4 = 0 No stochastic effects 21.06 5.30 5 10.37* Rejected
H0 : δ0= 0 No intercept 23.09 1.24 1 3.84 Not reject
H0 : δ1;…δn = 0 No firm-specific factors 16.86 13.68 4 9.49 Rejected
H0 : δ1 = 0 No Age effects 21.59 4.04 1 3.84 Rejected
  1. * Critical values with an asterisk are taken from Kodde and Palm (1986). For these variables the statistic λ follows a mixed χ2 distribution.