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Testing Household-Specific Explanations for the Inverse Productivity Relationship

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  • Juliano J. Assun��o
  • Luis H. B. Braido

Abstract

The inverse relationship between land productivity and farm size is an old and puzzling empirical regularity. Most explanations for this relationship rely on market imperfections that jointly determine the farm size and the household's shadow price of some productive inputs. We use plot-level data from the ICRISAT/VLS to assess whether these household-specific theories can explain the puzzle. The data exhibit plots of different sizes being simultaneously cropped by the same household. The inverse relationship is shown to hold true with the same magnitude across the plots of each household, thus cross-household heterogeneity does not suffice to explain the puzzle. Copyright 2007, Oxford University Press.

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File URL: http://hdl.handle.net/10.1111/j.1467-8276.2007.01032.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): 89 (2007)
Issue (Month): 4 ()
Pages: 980-990

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Handle: RePEc:oup:ajagec:v:89:y:2007:i:4:p:980-990

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Cited by:
  1. James Roumasset, 2010. "Wither The Economics of Agricultural Development?," Working Papers 201003, University of Hawaii at Manoa, Department of Economics.
  2. Holden, Stein & Fisher, Monica, 2013. "Can area measurement error explain the inverse farm size productivity relationship?," CLTS Working Papers 12/13, Centre for Land Tenure Studies, Norwegian University of Life Sciences.
  3. Maria Joana Girante & Barry K. Goodwin & Allen Featherstone, 2009. "Wealth, Debt, Government Payments, and Yield Performance," NIPE Working Papers 15/2009, NIPE - Universidade do Minho.
  4. Foster, Andrew D. & Rosenzweig, Mark R., 2010. "Is There Surplus Labor in Rural India?," Working Papers 85, Yale University, Department of Economics.
  5. Marijn Verschelde & Marijke D’Haese & Glenn Rayp & Ellen Vandamme, 2013. "Challenging Small-Scale Farming: A Non-Parametric Analysis of the (Inverse) Relationship Between Farm Productivity and Farm Size in Burundi," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(2), pages 319-342, 06.
  6. Deininger, Klaus & Nizalov, Denys & Singh, Sudhir K, 2013. "Are mega-farms the future of global agriculture ? exploring the farm size-productivity relationship," Policy Research Working Paper Series 6544, The World Bank.
  7. Ali, Daniel Ayalew & Deininger, Klaus, 2014. "Is there a farm-size productivity relationship in African agriculture ? evidence from Rwanda," Policy Research Working Paper Series 6770, The World Bank.
  8. Klaus Deininger & Denys Nizalov & Sudhir K Singh, 2013. "Are mega-farms the future of global agriculture? Exploring the farm size-productivity relationship for large commercial farms in Ukraine," Discussion Papers 49, Kyiv School of Economics.
  9. Christopher B. Barrett & Marc F. Bellemare & Janet Y. Hou, 2010. "Reconsidering Conventional Explanations of the Inverse Productivity-Size Relationship," Working Papers 10-22, Duke University, Department of Economics.
  10. Klasen, Stephan & Reimers, Malte, 2013. "Looking at Pro-Poor Growth from an Agricultural Perspective," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149745, Agricultural and Applied Economics Association.
  11. Verschelde, Marijn & Vandamme, Ellen & D'Haese, Marijke F.C. & Rayp, Glenn, 2011. "Methodological innovations in estimating the (inverse) relationship between farm productivity and farm size in a developing economy: a case study of Burundi," 122nd Seminar, February 17-18, 2011, Ancona, Italy 99359, European Association of Agricultural Economists.
  12. Pieralli, Simone, 2012. "Sources of measured agricultural yield difference," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124771, Agricultural and Applied Economics Association.
  13. Michael Chappell & Liliana LaValle, 2011. "Food security and biodiversity: can we have both? An agroecological analysis," Agriculture and Human Values, Springer, vol. 28(1), pages 3-26, February.

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