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"Small" or "Large" Farm: Some Methodological Considerations

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  • Howard E. Doran

Abstract

Often the estimation of agricultural production technologies in less developed countries is achieved by dividing the sample arbitrarily into "small" and "large" farms and estimating a separate production function for each group. This is equivalent to including an appropriate dummy variable in a single regression on the whole sample. A modification of this approach is to replace the dummy variable (a step-function) by either a cumulative normal or logistic function. The parameters of such a "generalized dummy variable" convey valuable information on whether a small-large categorization is appropriate and, if so, where the division should be made.

Suggested Citation

  • Howard E. Doran, 1985. ""Small" or "Large" Farm: Some Methodological Considerations," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(1), pages 130-132.
    • Handle: RePEc:oup:ajagec:v:67:y:1985:i:1:p:130-132.
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    File URL: http://hdl.handle.net/10.2307/1240832
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    Cited by:

    1. Theodoridis, A.M. & Psychoudakis, A. & Christofi, A., 2006. "Data Envelopment Analysis as a Complement to Marginal Analysis," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 7(2), pages 1-11, July.
    2. Fertő, Imre, 2002. "A mezőgazdasági termelés szerkezetének változásai a fejlett országokban, II. Az üzemnagyság és a mérethozadék problémája a mezőgazdaságban [Changes in the structure of agricultural production in th," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(9), pages 760-773.

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