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Specification and Estimation of Production Functions Involving Damage Control Inputs: A Two-Stage, Semiparametric Approach

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  • Timo Kuosmanen
  • Diemuth Pemsl
  • Justus Wesseler

Abstract

Productivity assessment of damage control inputs (such as pesticides) is complicated because their effect depends on the exposure to damage agents (such as pests). We discuss some open specification and estimation issues. The contribution is threefold. First, we elaborate the separability conditions for the damage control function and production function. Second, we employ a two-stage semiparametric technique to combine attractive features of both nonparametric and parametric approaches. Third, we model the interaction between pest exposure and damage control inputs by using slope dummies. An application to productivity analysis of small scale Bt cotton production in China illustrates the approach. Copyright 2006, Oxford University Press.

Suggested Citation

  • Timo Kuosmanen & Diemuth Pemsl & Justus Wesseler, 2006. "Specification and Estimation of Production Functions Involving Damage Control Inputs: A Two-Stage, Semiparametric Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(2), pages 499-511.
    • Handle: RePEc:oup:ajagec:v:88:y:2006:i:2:p:499-511
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    File URL: http://hdl.handle.net/10.1111/j.1467-8276.2006.00874.x
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    Cited by:

    1. Cheng Maolin & Jiang Zedi, 2016. "A New Class of Production Function Model and Its Application," Journal of Systems Science and Information, De Gruyter, vol. 4(2), pages 177-185, April.
    2. Naveed IQBAL & Maqbool Hussain SIAL, 2018. "Semi-parametric analysis of agricultural production under dichotomy of inputs," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 64(8), pages 378-388.
    3. Boyer, Christopher N. & Harmon, Xavier & Smith, S. Aaron & Lambert, Dayton M. & Kelly, Heather & Jordan, Jamie & Newman, Melvin, 2016. "A Two-Stage Approach for Estimating the Value of Damage Control with Fungicide in Soybean Production," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 229574, Southern Agricultural Economics Association.
    4. Monchuk, Daniel C. & Zhuo, Chen, 2008. "Explaining Production Inefficiency in China’s Agriculture using Data Envelope Analysis and Semi-Parametric Bootstrapping," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6456, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Ruiyao Ying & Li Zhou & Wuyang Hu & Dan Pan, 2017. "Agricultural technical education and agrochemical use by rice farmers in China," Agribusiness, John Wiley & Sons, Ltd., vol. 33(4), pages 522-536, September.
    6. Pavla BLAHOVA & Karel JANDA & Ladislav KRISTOUFEK, 2014. "The perspectives for genetically modified cellulosic biofuels in the Central European conditions," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 60(6), pages 247-259.
    7. Alessandro Bonanno & Valentina C. Materia & Thomas Venus & Justus Wesseler, 2017. "The Plant Protection Products (PPP) Sector in the European Union: A Special View on Herbicides," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 29(3), pages 575-595, July.
    8. Odeck, James, 2009. "Statistical precision of DEA and Malmquist indices: A bootstrap application to Norwegian grain producers," Omega, Elsevier, vol. 37(5), pages 1007-1017, October.
    9. Mita Bagchi & Sanzidur Rahman & Yao Shunbo, 2019. "Growth in Agricultural Productivity and Its Components in Bangladeshi Regions (1987–2009): An Application of Bootstrapped Data Envelopment Analysis (DEA)," Economies, MDPI, vol. 7(2), pages 1-16, May.
    10. Monchuk, Daniel C. & Chen, Zhuo & Bonaparte, Yosef, 2010. "Explaining production inefficiency in China's agriculture using data envelopment analysis and semi-parametric bootstrapping," China Economic Review, Elsevier, vol. 21(2), pages 346-354, June.
    11. Sadashivappa, Prakash & Qaim, Matin, 2009. "Effects of Bt Cotton in India During the First Five Years of Adoption," 2009 Conference, August 16-22, 2009, Beijing, China 49947, International Association of Agricultural Economists.
    12. Brown, Zachary S. & Connor, Lawson & Rejesus, Roderick M. & Yorobe, Jose M., 2021. "Landscape-level feedbacks in the demand for transgenic pesticidal corn in the Philippines," Ecological Economics, Elsevier, vol. 180(C).
    13. Kourtesi, Sofia & De Witte, Kristof & Polymeros, Apostolos, 2016. "Technical Efficiency in the Agricultural Sector - Evidence from a Conditional Quantile-Based Approach," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 17(2), June.
    14. Mulwa, Richard & Siikamaki, Juha & Ndwiga, Michael & Alvsilver, Jessica, 2022. "Influence of proximity to and type of foraging habitat on value of insect pollination in the tropics, with applications to Kenya," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 17(2), June.
    15. Boussemart, Jean-Philippe & Leleu, Hervé & Ojo, Oluwaseun, 2011. "Could society's willingness to reduce pesticide use be aligned with farmers' economic self-interest?," Ecological Economics, Elsevier, vol. 70(10), pages 1797-1804, August.
    16. repec:ags:aaea22:335823 is not listed on IDEAS
    17. Elbakidze, Levan & Lu, Liang & Eigenbrode, Sanford, 2011. "Evaluating Vector-Virus-Yield Interactions for Peas and Lentils under Climatic Variability: A Limited Dependent Variable Analysis," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(3), pages 1-17.
    18. Yeh, D. Adeline & Gomez, Miguel I. & Lin Lawell, C.-Y. Cynthia, 2020. "Sustainable Pest Management Under Uncertainty: A Dynamic Bioeconomic Analysis of Lowbush Blueberry Production," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304326, Agricultural and Applied Economics Association.
    19. Isidoro GUZMÁN & Narciso ARCAS, 2008. "The Usefulness Of Accounting Information In The Measurement Of Technical Efficiency In Agricultural Cooperatives," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 79(1), pages 107-131, March.
    20. Jean-Philippe Boussemart & Hervé Leleu & Oluwaseun Ojo, 2012. "Exploring cost dominance between high and low pesticide use in French crop farming systems by varying scale and output mix," Working Papers 2012-ECO-11, IESEG School of Management.
    21. Böcker, Thomas & Britz, Wolfgang & Finger, Robert, 2017. "Modelling the Effects of a Glyphosate Ban on Weed Management in Maize Production," 57th Annual Conference, Weihenstephan, Germany, September 13-15, 2017 261982, German Association of Agricultural Economists (GEWISOLA).

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