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Health, Technical Efficiency and Agricultural Production in Indian Districts

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  • Atheendar S. Venkataramani

    (Yale University School of Public Health, New Haven, CT 06520 (USA))

  • K.R. Shanmugam

    (Madras School of Economics)

  • Jennifer Prah Ruger

    (Madras School of Economics)

Abstract

In this study, we attempt to quantify the effect of improved population health on technical efficiency in agricultural production. Using data for over 260 districts in 15 Indian states, we employ the random-coefficients technique to estimate a Cobb-Douglas production function, computing overall and input specific technical efficiencies for each district. We then model health (the district infant mortality rate) as a determinant of (in) efficiency in a second stage, controlling for a range of other socioeconomic variables. We find that decreases in the infant mortality rate, as well as increases in the literacy rate and level of irrigation, are associated with significant increases in overall technical efficiency, and that a good portion of health’s effect is probably due to improvements in the efficiency of labor use. While efficiency increases from improvements in irrigation and literacy are larger, the potential gains from health are still fairly substantial.

Suggested Citation

  • Atheendar S. Venkataramani & K.R. Shanmugam & Jennifer Prah Ruger, 2006. "Health, Technical Efficiency and Agricultural Production in Indian Districts," Working Papers 2006-011, Madras School of Economics,Chennai,India.
    • Handle: RePEc:mad:wpaper:2006-011
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    3. C. Simon Fan, 2011. "The Luxury Axiom, The Wealth Paradox, And Child Labor," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 36(3), pages 25-45, September.
    4. Kappes, Alex & Marsh, Thomas L., 2021. "An Evaluation of Livestock Health on Production Inefficiency in Western Kenya," 2021 Annual Meeting, August 1-3, Austin, Texas 314049, Agricultural and Applied Economics Association.

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    More about this item

    Keywords

    Technical efficiency; Random coefficients model; the frontier production function.;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • D20 - Microeconomics - - Production and Organizations - - - General

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