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The Econometrics of Damage Control: Why Specification Matters

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  • Lichtenberg, Erik
  • Zilberman, David

Abstract

The contribution of damage control agents to production differs fundamentally from that of standard inputs (lands, labor, capital). This paper develops an econometric model based on the key characteristics of damage control agents and examines its properties. It demonstrates that standard production function specifications overestimate damage control agent productivity and have erroneous implications for the evolution of damage control agent productivity and use in response to changing environments (e.g., the spread of pest resistance). It also proposes several alternative specifications and discusses methods for estimating them.
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Suggested Citation

  • Lichtenberg, Erik & Zilberman, David, 1985. "The Econometrics of Damage Control: Why Specification Matters," CUDARE Working Papers 198273, University of California, Berkeley, Department of Agricultural and Resource Economics.
    • Handle: RePEc:ags:ucbecw:198273
    DOI: 10.22004/ag.econ.198273
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    References listed on IDEAS

    as
    1. Gerald A. Carlson, 1977. "Long-Run Productivity of Insecticides," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 59(3), pages 543-548.
    2. Feder, G. & Regev, U., 1975. "Biological interactions and environmental effects in the economics of pest control," Journal of Environmental Economics and Management, Elsevier, vol. 2(2), pages 75-91, December.
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