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Estimating Farm Productivity Differentials using Panel Data: The Hausman‐Taylor Approach

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  • Cornelis Gardebroek
  • Alfons Oude Lansink

Abstract

This paper investigates the relation between unobserved farm productivity and other production factors in a system of netput equations for specialised pig breeding farms in the Netherlands. In order to estimate the system, a Hausman‐Taylor panel data estimator is developed for a system of equations with unbalanced panel data. Tests on the correlation between model variables and farm‐effects are performed, yielding an insight into the sources of differences in total factor productivity and its components (e.g. managerial ability and scale economies). Results indicate that specialised pig breeding farms that are characterised by high total factor productivity have more buildings and machinery than farms with low total factor productivity.

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  • Cornelis Gardebroek & Alfons Oude Lansink, 2003. "Estimating Farm Productivity Differentials using Panel Data: The Hausman‐Taylor Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 54(3), pages 397-415, November.
    • Handle: RePEc:bla:jageco:v:54:y:2003:i:3:p:397-415
    DOI: 10.1111/j.1477-9552.2003.tb00068.x
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    Cited by:

    1. Lajos Barath & Raushan Bokusheva & Imre Ferto, 2016. "Studying Farm Insurance Demand under Financial Constraints," CERS-IE WORKING PAPERS 1625, Institute of Economics, Centre for Economic and Regional Studies.
    2. Coletta Frenzel Baudisch, 2019. "Chinese Capital Flows to African Economies and Real Bilateral Exchange Rates," MAGKS Papers on Economics 201910, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    3. Béatrice D'HOMBRES & Jean-Louis ARCAND, 2006. "Testing for Separation in Agricultural Household Models and Unobservable Household-Specific Effects," Working Papers 200632, CERDI.
    4. Antonio Alvarez & Carlos Arias & Luis Orea, 2006. "Explaining Differences in Milk Quota Values: The Role of Economic Efficiency," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(1), pages 182-193.
    5. Britz, Wolfgang & van Ittersum, Martin K. & Oude Lansink, Alfons G.J.M. & Heckelei, Thomas, 2012. "Tools for Integrated Assessment in Agriculture. State of the Art and Challenges," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 1(2), pages 1-26, August.
    6. Liang Zhao & Joyce P. Jacobsen, 2006. "Revisiting The Bell Curve Debate Regarding the Effects of Cognitive Ability on Wages," Wesleyan Economics Working Papers 2006-026, Wesleyan University, Department of Economics.

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