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Specification and Estimation of Production Functions Involving Damage Control Inputs: A Two-Stage, Semiparametric Approach

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  • Timo Kuosmanen
  • Diemuth Pemsl
  • Justus Wesseler

Abstract

Productivity assessment of damage control inputs (such as pesticides) is complicated because their effect depends on the exposure to damage agents (such as pests). We discuss some open specification and estimation issues. The contribution is threefold. First, we elaborate the separability conditions for the damage control function and production function. Second, we employ a two-stage semiparametric technique to combine attractive features of both nonparametric and parametric approaches. Third, we model the interaction between pest exposure and damage control inputs by using slope dummies. An application to productivity analysis of small scale Bt cotton production in China illustrates the approach. Copyright 2006, Oxford University Press.

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File URL: http://hdl.handle.net/10.1111/j.1467-8276.2006.00874.x
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Bibliographic Info

Article provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 88 (2006)
Issue (Month): 2 ()
Pages: 499-511

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Handle: RePEc:oup:ajagec:v:88:y:2006:i:2:p:499-511

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Cited by:
  1. Monchuk, Daniel C. & Zhuo, Chen, 2008. "Explaining Production Inefficiency in China’s Agriculture using Data Envelope Analysis and Semi-Parametric Bootstrapping," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6456, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  2. Boussemart, Jean-Philippe & Leleu, Herve & Ojo, Oluwaseun, 2011. "Could Society’s willingness to reduce pesticide use be aligned with Farmers’ economic self-interest?," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 120402, European Association of Agricultural Economists.
  3. Sadashivappa, Prakash & Qaim, Matin, 2009. "Effects of Bt Cotton in India During the First Five Years of Adoption," 2009 Conference, August 16-22, 2009, Beijing, China 49947, International Association of Agricultural Economists.
  4. Jean-Philippe Boussemart & Hervé Leleu & Oluwaseun Ojo, 2012. "Exploring cost dominance between high and low pesticide use in French crop farming systems by varying scale and output mix," Working Papers 2012-ECO-11, IESEG School of Management.
  5. Odeck, James, 2009. "Statistical precision of DEA and Malmquist indices: A bootstrap application to Norwegian grain producers," Omega, Elsevier, vol. 37(5), pages 1007-1017, October.

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