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Health, Technical Efficiency And Agricultural Production In Indian Districts

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  • Atheendar S. Venkataramani

    (MSE)

  • K.R. Shanmugam
  • Jennifer Prah Ruger

Abstract

In this study, we attempt to quantify the effect of improved population health on technical efficiency in agricultural production. Using data for over 260 districts in 15 Indian states, we employ the random-coefficients technique to estimate a Cobb-Douglas production function, computing overall and input specific technical efficiencies for each district. We then model health (the district infant mortality rate) as a determinant of (in) efficiency in a second stage, controlling for a range of other socioeconomic variables. We find that decreases in the infant mortality rate, as well as increases in the literacy rate and level of irrigation, are associated with significant increases in overall technical efficiency, and that a good portion of healths effect is probably due to improvements in the efficiency of labor use. While efficiency increases from improvements in irrigation and literacy are larger, the potential gains from health are still fairly substantial.

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Bibliographic Info

Paper provided by East Asian Bureau of Economic Research in its series Microeconomics Working Papers with number 22519.

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Date of creation: Jan 2006
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Handle: RePEc:eab:microe:22519

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Keywords: technical efficiency; Random coefficients model; the frontier production function;

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Cited by:
  1. Svitlana Maksymenko & Mahbub Rabbani, 2011. "Economic Reforms, Human Capital, And Economic Growth In India And South Korea: A Cointegration Analysis," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, Chung-Ang Unviersity, Department of Economics, vol. 36(2), pages 39-59, June.
  2. C. Simon Fan, 2011. "The Luxury Axiom, The Wealth Paradox, And Child Labor," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, Chung-Ang Unviersity, Department of Economics, vol. 36(3), pages 25-45, September.

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