IDEAS home Printed from https://ideas.repec.org/a/eee/agecon/v11y1994i2-3p171-189.html
   My bibliography  Save this article

Estimating random effects production function models with selectivity bias: an application to Swedish crop producers

Author

Listed:
  • Heshmati, Almas

Abstract

In this paper, the estimation of production functions and measurement of the rate of technical change is performed when selectivity bias is expected. A sample selection model consisting of a selection and a regression equation is estimated using Heckman's two‐stage method. It is discussed in the context of a production function where the underlying technology is represented by a translog functional form. For the regression, a random effects model with heteroscedastic variances is assumed. This model and an alternative conventional model retaining heteroscedasticity without considering selectivity bias are estimated using the Generalized Least Squares method. The data used are a large rotating panel data set from Swedish crop producers over the period 1976–1988. The empirical results from the comparison between these two models show that the introduction of heteroscedasticity and the integration of sample selection in the production relationship is important. The impact of a correction for selectivity bias on the results, in terms of input elasticities and returns to scale is found to be significant.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Heshmati, Almas, 1994. "Estimating random effects production function models with selectivity bias: an application to Swedish crop producers," Agricultural Economics, Blackwell, vol. 11(2-3), pages 171-189, December.
  • Handle: RePEc:eee:agecon:v:11:y:1994:i:2-3:p:171-189
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/0169-5150(50)00017-3
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Vangelis Tzouvelekas & Peter Midmore & Konstantinos Giannakas & Konstantinos Mattas, 1999. "Decomposition of Olive Oil Production Growth into Productivity and Size Effects : A Frontier Production Function Approach," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 51, pages 5-21.
    2. Drall, Anviksha & Mandal, Sabuj Kumar, 2021. "Investigating the existence of entry barriers in rural non-farm sector (RNFS) employment in India: A theoretical modelling and an empirical analysis," World Development, Elsevier, vol. 141(C).
    3. Almas Heshmati & Subal C. Kumbhakar, 1997. "Estimation Of Technical Efficiency In Swedish Crop Farms: A Pseudo Panel Data Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1‐3), pages 22-37, January.
    4. Franz Sinabell & Klaus Salhofer & Giannis Karagiannis, 2006. "Das Programm der ländlichen Entwicklung 2000-2006. Ausgewählte ökonomische Konsequenzen," WIFO Studies, WIFO, number 27158.
    5. Tzouvelekas, Evaggelos, 2000. "Approximation Properties and Estimation of the Translog Production Function with Panel Data," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 1(1), pages 1-16, January.
    6. Almas Heshmati & Mkhululi Ncube, 2004. "An Econometric Model Of Employment In Zimbabwe¡¯S Manufacturing Industries," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 29(2), pages 107-130, December.
    7. Vavra, Pavel & Colman, David, 2003. "The analysis of UK crop allocation at the farm level: implications for supply response analysis," Agricultural Systems, Elsevier, vol. 76(2), pages 697-713, May.
    8. Almas Heshmati & Ilham Haouas, 2011. "Employment Efficiency and Production Risk in the Tunisian Manufacturing Industries," Working Papers 602, Economic Research Forum, revised 07 Jan 2011.
    9. Karakas, Leyla D. & Kim, Nam Seok & Mitra, Devashish, 2021. "Attitudes towards globalization barriers and implications for voting: Evidence from Sweden," Journal of Economic Behavior & Organization, Elsevier, vol. 190(C), pages 851-877.
    10. Anjana Bhattacharyya & Arunava Bhattacharyya & Krishna Mitra, 1997. "Decomposition of Technological Change and Factor Bias in Indian Power Sector: An Unbalanced Panel Data Approach," Journal of Productivity Analysis, Springer, vol. 8(1), pages 35-52, March.
    11. Heshmati, Almas & Ncube, Mkhululi, 1998. "An Econometric Model of Employment in Zimbabwe's Manufacturing Industries," SSE/EFI Working Paper Series in Economics and Finance 277, Stockholm School of Economics, revised 15 Aug 2003.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:agecon:v:11:y:1994:i:2-3:p:171-189. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.blackwell-synergy.com/loi/agec .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.