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Sources of measured agricultural yield difference

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  • Pieralli, Simone
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    Abstract

    We decompose yield difference relative to a reference level into components attributable to (1) efficiency difference, and movements along the frontier due to (2) land quality, to (3) land size, and to (4) other inputs. The production frontier is built using nonparametric methods requiring no specification of the functional form of the technology. We analyze the contributions to yield relative to a reference unit in terms of the quadripartite decomposition finding that results depend on the choice of the unit of reference. If the reference unit is chosen to be the mean, land size contributions are found to be negatively correlated to yield with usual finite moments regression methods. Also nonparamteric correlation confirms the negative sign of the relationship. If the reference unit is chosen to be the median instead, land size contributions are found to be negatively correlated to yield with usual finite moments regression methods. But nonparametric correlation is not statistically significant because many farmers have no contribution to production difference from their different land sizes. Integrated squared density difference tests show in both cases efficiency has a major role in shaping the distribution.

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    Bibliographic Info

    Paper provided by Agricultural and Applied Economics Association in its series 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington with number 124771.

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    Date of creation: 04 Jun 2012
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    Handle: RePEc:ags:aaea12:124771

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    Keywords: inverse land size-productivity relationship; productivity decomposition; efficiency; yield; Kenya; Land Economics/Use; Research and Development/Tech Change/Emerging Technologies; D20; C14; C43;

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    1. Li, Qi & Maasoumi, Esfandiar & Racine, Jeffrey S., 2009. "A nonparametric test for equality of distributions with mixed categorical and continuous data," Journal of Econometrics, Elsevier, vol. 148(2), pages 186-200, February.
    2. Carletto, Calogero & Savastano, Sara & Zezza, Alberto, 2013. "Fact or artifact: The impact of measurement errors on the farm size–productivity relationship," Journal of Development Economics, Elsevier, vol. 103(C), pages 254-261.
    3. Barrett, Christopher B. & Bellemare, Marc F. & Hou, Janet Y., 2010. "Reconsidering Conventional Explanations of the Inverse Productivity-Size Relationship," World Development, Elsevier, vol. 38(1), pages 88-97, January.
    4. Lamb, Russell L., 2003. "Inverse productivity: land quality, labor markets, and measurement error," Journal of Development Economics, Elsevier, vol. 71(1), pages 71-95, June.
    5. Juliano J. Assun��o & Luis H. B. Braido, 2007. "Testing Household-Specific Explanations for the Inverse Productivity Relationship," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(4), pages 980-990.
    6. Daniel J. Henderson & R. Robert Russell, 2005. "Human Capital And Convergence: A Production-Frontier Approach ," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 46(4), pages 1167-1205, November.
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