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A Non-Parametric Analysis of Productivity: The Case of U.S. Agriculture

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  • Chavas, Jean-Paul
  • Cox, Thomas L.

Abstract

A nonparametric analysis of technical change under profit maximization and a "generalized augmentation" hypothesis is proposed. It allows for Hicks neutral as well as biased technical change. An empirical application to U.S. agriculture is presented in the context of input-output translating (additive augmentation). The analysis generates nonparametric estimates of productivity that are obtained under less restrictive assumptions than other commonly used productivity measures. The empirical results illustrate the usefulness of the approach. Copyright 1990 by Oxford University Press.
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  • Chavas, Jean-Paul & Cox, Thomas L., 1988. "A Non-Parametric Analysis of Productivity: The Case of U.S. Agriculture," Staff Papers 200458, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    • Handle: RePEc:ags:wisagr:200458
    DOI: 10.22004/ag.econ.200458
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    1. Norsworthy, J R & Malmquist, David H, 1983. "Input Measurement and Productivity Growth in Japanese and U.S. Manufacturing," American Economic Review, American Economic Association, vol. 73(5), pages 947-967, December.
    2. Binswanger, Hans P, 1974. "The Measurement of Technical Change Biases with Many Factors of Production," American Economic Review, American Economic Association, vol. 64(6), pages 964-976, December.
    3. Hanoch, Giora & Rothschild, Michael, 1972. "Testing the Assumptions of Production Theory: A Nonparametric Approach," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 256-275, March-Apr.
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    5. V. Eldon Ball, 1985. "Output, Input, and Productivity Measurement in U.S. Agriculture 1948–79," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(3), pages 475-486.
    6. Diewert, W. E., 1976. "Exact and superlative index numbers," Journal of Econometrics, Elsevier, vol. 4(2), pages 115-145, May.
    7. Varian, Hal R, 1984. "The Nonparametric Approach to Production Analysis," Econometrica, Econometric Society, vol. 52(3), pages 579-597, May.
    8. Stevenson, Rodney, 1980. "Measuring Technological Bias," American Economic Review, American Economic Association, vol. 70(1), pages 162-173, March.
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    Cited by:

    1. Jean‐Paul Chavas & Thomas L. Cox, 1997. "Production Analysis: A Non‐Parametric Time Series Application To Us Agriculture," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1‐3), pages 330-348, January.
    2. Jean-Paul CHAVAS & Thomas L. COX, 1994. "A Primal-Dual Approach To Nonparametric Productivity Analysis: The Case Of U.S. Agriculture," Staff Papers 372, University of Wisconsin Madison, AAE.
    3. Ussif, Al-Amin M. & Lambert, David K., 1998. "Testing For Noncompetitive Behavior In The U.S. Food Industry," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20978, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Fare, Rolf & Grosskopf, Shawna, 1995. "Nonparametric tests of regularity, Farrell efficiency, and goodness-of-fit," Journal of Econometrics, Elsevier, vol. 69(2), pages 415-425, October.
    5. Just, Richard E., 2003. "Risk research in agricultural economics: opportunities and challenges for the next twenty-five years," Agricultural Systems, Elsevier, vol. 75(2-3), pages 123-159.
    6. Kellie Curry Raper & Corinna Noelke, 2004. "Determining market power exertion between buyers and sellers: are nonparametrics a viable alternative?," Applied Economics, Taylor & Francis Journals, vol. 36(20), pages 2265-2274.
    7. Just, Richard E., 2000. "Some Guiding Principles for Empirical Production Research in Agriculture," Agricultural and Resource Economics Review, Cambridge University Press, vol. 29(2), pages 138-158, October.
    8. Peter Bogetoft & Jens Hougaard, 2003. "Rational Inefficiencies," Journal of Productivity Analysis, Springer, vol. 20(3), pages 243-271, November.
    9. Laurens CHERCHYE & Timo KUOSMANEN & Thierry POST, 2001. "Non-Parametric Production Analysis under Alternative Price Conditions," Working Papers of Department of Economics, Leuven ces0105, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    10. Giannis Karagiannis & George Mergos, 2000. "Total Factor Productivity Growth and Technical Change in a Profit Function Framework," Journal of Productivity Analysis, Springer, vol. 14(1), pages 31-51, July.
    11. Lambert, David K., 1997. "A Programming Approach To Estimate Production Functions Using Bounds On The True Production Set," Discussion Papers 12956, University of Nevada at Reno, Department of Resource Economics.
    12. Temel, Tugrul, 2011. "New facts for old debates: Farm size and productivity in US agriculture," MPRA Paper 31920, University Library of Munich, Germany.
    13. C. Lovell & Shawna Grosskopf & Eduardo Ley & Jesús Pastor & Diego Prior & Philippe Eeckaut, 1994. "Linear programming approaches to the measurement and analysis of productive efficiency," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 2(2), pages 175-248, December.
    14. Fulginiti, Lilyan E., 2001. "Griliches' K-Shift And Competitiveness: Commodity Progress In Us Agriculture," 2001 Annual meeting, August 5-8, Chicago, IL 20700, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. Mullen, John D. & Cox, Thomas L., 1996. "Measuring Productivity Growth In Australian Broadacre Agriculture," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 40(3), pages 1-22, December.
    16. David Lambert, 1998. "Productivity Measurement from a Reference Technology: A Distance Function Approach," Journal of Productivity Analysis, Springer, vol. 10(3), pages 289-304, November.
    17. Yacob Abrehe Zereyesus & Allen M. Featherstone & Michael R. Langemeier, 2021. "Are Kansas farms profit maximizers? A stochastic additive error approach," Agricultural Economics, International Association of Agricultural Economists, vol. 52(1), pages 37-50, January.
    18. Chalfant, James A. & Eshel, Dafna M. Disegni, 2001. "A Nonparametric Test Of Advertising'S Effectiveness," 2001 Annual meeting, August 5-8, Chicago, IL 20529, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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    Keywords

    Farm Management; Productivity Analysis;

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