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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.