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U. S . Agriculture, 1960-96: A Multilateral Comparison of Total Factor Productivity

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  • Ball, V. Eldon
  • Butault, Jean-Pierre
  • Nehring, Richard

Abstract

This study provides estimates of the growth and relative levels of productivity for the 48 contiguous States for the period 1960 to 1996. For the full 1960-96 period, every State exhibits a positive and generally substantial average annual rate of productivity growth. There is considerable variance, however. The wide disparity in growth rates resulted in substantial changes in the rank order of States. For each year, we calculate the coefficient of variation of productivity levels. We use these coefficients to show that the range of levels of productivity has narrowed over time, although the pattern of convergence was far from uniform. The fact that some States grew faster than others and yet the cross section dispersion decreased implies that the States that grew most rapidly were those with lower initial levels of productivity. This result is consistent with Gerschenkron's notion of the advantage of relative backwardness. The States that were particularly far behind the productivity leaders had the most to gain from the diffusion of technical knowledge and proceeded to grow most rapidly. We also observe a positive relation between capital accumulation and productivity growth, implying embodiment of technology in capital.

Suggested Citation

  • Ball, V. Eldon & Butault, Jean-Pierre & Nehring, Richard, 2000. "U. S . Agriculture, 1960-96: A Multilateral Comparison of Total Factor Productivity," Staff Reports 276687, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerssr:276687
    DOI: 10.22004/ag.econ.276687
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    Cited by:

    1. Nehring, Richard & Erickson, Kenneth & Michael, Harris & Hallahan, Charlie & Katchova, Ani, 2016. "Heartland, Southern Seaboard, and Prairie Gateway: A Farm-Level Analysis," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235666, Agricultural and Applied Economics Association.
    2. Ball, V. Eldon & Fare, Rolf & Grosskopf, Shawna & Zaim, O. & Nehring, Richard F., 2001. "Accounting for Bads in the Measurement of Productivity Growth: A Cost Indirect Malmquist Productivity Measure and it Application to U.S. Agriculture," 2001 Annual meeting, August 5-8, Chicago, IL 20442, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Morrison Paul, Catherine J. & Nehring, Richard F. & Banker, David E. & Breneman, Vincent E., 2001. "Productivity Growth, Technological Progress, and Technical Efficiency in the Heartland and Southern Cotton States:1996-1999," 2001 Annual meeting, August 5-8, Chicago, IL 20679, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Nehring, Richard F. & Ball, V. Eldon & Breneman, Vincent E., 2002. "Land Quality in an International Comparison: It's Importance in Measuring Productivity," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24910, European Association of Agricultural Economists.
    5. Nehring, Richard F. & Banker, David E. & O'Donoghue, Erik J., 2003. "Have Hog Producers with Production Contracts Maintained an Economic Advantage over Independent Hog Producers in Recent Years?," 2003 Annual meeting, July 27-30, Montreal, Canada 22057, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Nehring, Richard F. & Christensen, Lee A. & O'Donoghue, Erik J. & Sandretto, Carmen L., 2003. "Manure and Commercial Fertilizer Nutrients Relative to Cropland and Pasture Requirements: Is the Pollution Risk Growing on Corn/Livestock Farms?," 2003 Annual meeting, July 27-30, Montreal, Canada 21980, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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