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Estimating Crop-Specific Production Technologies in Chinese Agriculture: A Generalized Maximum Entropy Approach

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  • Xiaobo Zhang
  • Shenggen Fan

Abstract

A generalized maximum entropy approach is adapted to empirically estimate crop-specific production technologies in Chinese agriculture. Despite a modest behavioral assumption about equal marginal returns of nonland inputs among crops, this method does not require price information, which is usually distorted in a centrally planned economy such as China. A multi-output technology for Chinese agriculture is estimated and input allocations for each province are recovered simultaneously. The estimated multi-output production technology and input allocations imply that China may have greater grain production potentials than previously thought. Copyright 2001, Oxford University Press.

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  • Xiaobo Zhang & Shenggen Fan, 2001. "Estimating Crop-Specific Production Technologies in Chinese Agriculture: A Generalized Maximum Entropy Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(2), pages 378-388.
  • Handle: RePEc:oup:ajagec:v:83:y:2001:i:2:p:378-388
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    File URL: http://hdl.handle.net/10.1111/0002-9092.00163
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