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Technical Change, Efficiency, and Total Factor Productivity in U.S. Agriculture

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  • Sabasi, Darlington
  • Shumway, C. Richard

Abstract

This article examines factors driving technical change, technical efficiency, and scale and mix efficiency – all components of total factor productivity – in U.S. agriculture. We use economic theory and previous literature to identify explanatory variables affecting each component and examine some potentially important factors which have received less attention in the literature. Results show that technical change comes primarily from increased innovation through public research and from improvements in human capital. Technical efficiency is driven by farm size and the ratio of family to total labor, while scale and mix efficiency is driven mainly by agro-climatic conditions, weather, and farm size.

Suggested Citation

  • Sabasi, Darlington & Shumway, C. Richard, 2014. "Technical Change, Efficiency, and Total Factor Productivity in U.S. Agriculture," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170225, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea14:170225
    DOI: 10.22004/ag.econ.170225
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    1. A. Wondemu Kifle, 2016. "Working Paper 237 - Decomposing Sources of Productivity Change in Small-Scale Farming in Ethiopia," Working Paper Series 2332, African Development Bank.

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    Keywords

    Agricultural and Food Policy; Production Economics; Productivity Analysis;
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