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Technical Change, Factor Bias, And Input Adjustments: Panel Data Evidence From The Philippines


  • Zelek, Charles
  • Shively, Gerald E.


We estimate a random effects stochastic frontier production function to study the impacts of irrigation on factor use on low-income rice farms in the Philippines. Irrigation precipitates a release of labor and an increase in use of fertilizer and pesticides. We find only weak statistical support for time-variant input elasticities. We study the dynamics of input adjustment by measuring the extent to which observed factor levels converge to optimal levels over time.

Suggested Citation

  • Zelek, Charles & Shively, Gerald E., 2001. "Technical Change, Factor Bias, And Input Adjustments: Panel Data Evidence From The Philippines," 2001 Annual meeting, August 5-8, Chicago, IL 20651, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea01:20651

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    References listed on IDEAS

    1. Kumbhakar, Subal C., 1991. "Estimation of technical inefficiency in panel data models with firm- and time-specific effects," Economics Letters, Elsevier, vol. 36(1), pages 43-48, May.
    2. Shively, Gerald E., 2001. "Poverty, consumption risk, and soil conservation," Journal of Development Economics, Elsevier, vol. 65(2), pages 267-290, August.
    3. K. Kalirajan, 1981. "An Econometric Analysis of Yield Variability in Paddy Production," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 29(3), pages 283-294, November.
    4. Hausman, Jerry A & Taylor, William E, 1981. "Panel Data and Unobservable Individual Effects," Econometrica, Econometric Society, vol. 49(6), pages 1377-1398, November.
    5. Barbier, Edward B. & Burgess, J.C., 1996. "Economic analysis of deforestation in Mexico," MPRA Paper 12089, University Library of Munich, Germany.
    6. Schmidt, Peter & Lin, Tsai-Fen, 1984. "Simple tests of alternative specifications in stochastic frontier models," Journal of Econometrics, Elsevier, vol. 24(3), pages 349-361, March.
    7. Baltagi, Badi H & Griffin, James M, 1988. "A General Index of Technical Change," Journal of Political Economy, University of Chicago Press, vol. 96(1), pages 20-41, February.
    8. Cornwell, Christopher & Schmidt, Peter & Sickles, Robin C., 1990. "Production frontiers with cross-sectional and time-series variation in efficiency levels," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 185-200.
    9. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
    10. Seale, James M, Jr, 1990. "Estimating Stochastic Frontier Systems with Unbalanced Panel Data: The Case of Floor Tile Manufactories in Egypt," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 5(1), pages 59-74, January-M.
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    Cited by:

    1. Rios, Ana R. & Shively, Gerald E., 2005. "Farm size and nonparametric efficiency measurements for coffee farms in Vietnam," 2005 Annual meeting, July 24-27, Providence, RI 19159, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).


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