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A Non-Parametric Analysis of Productivity: The Case of U.S. Agriculture

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  • Chavas, Jean-Paul
  • Cox, Thomas L.

Abstract

A nonparametric analysis of technical change under profit maximization and a "generalized augmentation" hypothesis is proposed. It allows for Hicks neutral as well as biased technical change. An empirical application to U.S. agriculture is presented in the context of input-output translating (additive augmentation). The analysis generates nonparametric estimates of productivity that are obtained under less restrictive assumptions than other commonly used productivity measures. The empirical results illustrate the usefulness of the approach. Copyright 1990 by Oxford University Press.
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Suggested Citation

  • Chavas, Jean-Paul & Cox, Thomas L., 1988. "A Non-Parametric Analysis of Productivity: The Case of U.S. Agriculture," Staff Papers 200458, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    • Handle: RePEc:ags:wisagr:200458
    DOI: 10.22004/ag.econ.200458
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    1. Stevenson, Rodney, 1980. "Measuring Technological Bias," American Economic Review, American Economic Association, vol. 70(1), pages 162-173, March.
    2. Norsworthy, J R & Malmquist, David H, 1983. "Input Measurement and Productivity Growth in Japanese and U.S. Manufacturing," American Economic Review, American Economic Association, vol. 73(5), pages 947-967, December.
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    5. Varian, Hal R, 1984. "The Nonparametric Approach to Production Analysis," Econometrica, Econometric Society, vol. 52(3), pages 579-597, May.
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    7. Hanoch, Giora & Rothschild, Michael, 1972. "Testing the Assumptions of Production Theory: A Nonparametric Approach," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 256-275, March-Apr.
    8. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "Multilateral Comparisons of Output, Input, and Productivity Using Superlative Index Numbers," Economic Journal, Royal Economic Society, vol. 92(365), pages 73-86, March.
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    2. Fulginiti, Lilyan E., 2001. "Griliches' K-Shift And Competitiveness: Commodity Progress In Us Agriculture," 2001 Annual meeting, August 5-8, Chicago, IL 20700, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Jean-Paul Chavas & Thomas L. Cox, 1994. "A Primal-Dual Approach to Nonparametric Productivity Analysis: the Case of U.S. Agriculture," Wisconsin-Madison Agricultural and Applied Economics Staff Papers 372, Wisconsin-Madison Agricultural and Applied Economics Department.
    4. Mullen, John D. & Cox, Thomas L., 1996. "Measuring Productivity Growth In Australian Broadacre Agriculture," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 40(3), pages 1-22, December.
    5. C. Lovell & Shawna Grosskopf & Eduardo Ley & Jesús Pastor & Diego Prior & Philippe Eeckaut, 1994. "Linear programming approaches to the measurement and analysis of productive efficiency," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 2(2), pages 175-248, December.
    6. Hjertstrand, Per & Tangerås, Thomas, 2025. "Nonparametric Tests for Perfect Competition: Theory and Application to the Nordic Wholesale Electricity Market," Working Paper Series 1527, Research Institute of Industrial Economics.
    7. Yacob Abrehe Zereyesus & Allen M. Featherstone & Michael R. Langemeier, 2021. "Are Kansas farms profit maximizers? A stochastic additive error approach," Agricultural Economics, International Association of Agricultural Economists, vol. 52(1), pages 37-50, January.
    8. Just, Richard E., 2003. "Risk research in agricultural economics: opportunities and challenges for the next twenty-five years," Agricultural Systems, Elsevier, vol. 75(2-3), pages 123-159.
    9. Just, Richard E., 2000. "Some Guiding Principles for Empirical Production Research in Agriculture," Agricultural and Resource Economics Review, Cambridge University Press, vol. 29(2), pages 138-158, October.
    10. Laurens CHERCHYE & Timo KUOSMANEN & Thierry POST, 2001. "Non-Parametric Production Analysis under Alternative Price Conditions," Working Papers of Department of Economics, Leuven ces0105, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    11. Love, H. Alan & Burton, Diana M. & Raper, Kellie Curry & Shumway, C. Richard, 1999. "Empirical Monopsony Market Power Measurement in Beef Packing," Consolidation in the meat sector, February 25-26, 1999, Washington, D.C. 303389, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    12. David Lambert, 1998. "Productivity Measurement from a Reference Technology: A Distance Function Approach," Journal of Productivity Analysis, Springer, vol. 10(3), pages 289-304, November.
    13. Jean‐Paul Chavas & Thomas L. Cox, 1997. "Production Analysis: A Non‐Parametric Time Series Application To Us Agriculture," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1‐3), pages 330-348, January.
    14. Giannis Karagiannis & George Mergos, 2000. "Total Factor Productivity Growth and Technical Change in a Profit Function Framework," Journal of Productivity Analysis, Springer, vol. 14(1), pages 31-51, July.
    15. Ussif, Al-Amin M. & Lambert, David K., 1998. "Testing For Noncompetitive Behavior In The U.S. Food Industry," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20978, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    16. Fare, Rolf & Grosskopf, Shawna, 1995. "Nonparametric tests of regularity, Farrell efficiency, and goodness-of-fit," Journal of Econometrics, Elsevier, vol. 69(2), pages 415-425, October.
    17. Lambert, David K., 1997. "A Programming Approach To Estimate Production Functions Using Bounds On The True Production Set," Discussion Papers 12956, University of Nevada at Reno, Department of Resource Economics.
    18. Chalfant, James A. & Eshel, Dafna M. Disegni, 2001. "A Nonparametric Test Of Advertising'S Effectiveness," 2001 Annual meeting, August 5-8, Chicago, IL 20529, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    19. Peter Bogetoft & Jens Hougaard, 2003. "Rational Inefficiencies," Journal of Productivity Analysis, Springer, vol. 20(3), pages 243-271, November.
    20. Kellie Curry Raper & Corinna Noelke, 2004. "Determining market power exertion between buyers and sellers: are nonparametrics a viable alternative?," Applied Economics, Taylor & Francis Journals, vol. 36(20), pages 2265-2274.
    21. Temel, Tugrul, 2011. "New facts for old debates: Farm size and productivity in US agriculture," MPRA Paper 31920, University Library of Munich, Germany.

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