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Testing Long-Run Productivity Models for the Canadian and U.S. Agricultural Sectors

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  • Susan M. Capalbo
  • Michael Denny

Abstract

This paper discusses a portion of our work linking data on the agriculture sector in the United States and Canada. The purpose of this work is to explore the evolution of gains in agricultural productivity in the two countries during the post-WWII period. Comparable data has been developed for each country and a series of tests have been applied about the nature of the long-run production sector. These tests are designed to evaluate the alternate possible structures of shifts in the long-run technology over time.There is considerable evidence in both countries that the long-run shifts have been Hicks Neutral in models that use gross, not net, output measures. The reverse is true for the net output models. The use of the conventional net output measures is strongly rejected. However there is evidence, in both countries, in support of the hypothesis that separability of a type that is similar to, but weaker, than real-value added is not rejected.

Suggested Citation

  • Susan M. Capalbo & Michael Denny, 1985. "Testing Long-Run Productivity Models for the Canadian and U.S. Agricultural Sectors," NBER Working Papers 1764, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:1764
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    Cited by:

    1. Shumway, C. Richard & Davis, George C., 2001. "Does consistent aggregation really matter?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(2), pages 1-34.
    2. Sharples, Jerry A., 1990. "Cost Of Production And Productivity In Analyzing Trade And Competitiveness," 1990 Annual meeting, August 5-8, Vancouver, Canada 271060, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Jean-Paul Chavas & Thomas L. Cox, 1988. "A Nonparametric Analysis of Agricultural Technology," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(2), pages 303-310.
    4. Robert G. Chambers & Erik Lichtenberg, 1994. "Simple Econometrics of Pesticide Productivity," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(3), pages 407-417.
    5. Chambers, Robert G. & Pope, Rulon D., 1993. "A Virtually Ideal Production System: Specifying and Estimating the VIPS Model," Working Papers 197785, University of Maryland, Department of Agricultural and Resource Economics.
    6. Ashok Mishra & Charles Moss & Kenneth Erickson, 2004. "Valuing farmland with multiple quasi-fixed inputs," Applied Economics, Taylor & Francis Journals, vol. 36(15), pages 1669-1675.
    7. Bashir, Kamaleldin Ali, 1990. "Technical change in Iowa agricultural production: a conditional demand approach," ISU General Staff Papers 1990010108000017619, Iowa State University, Department of Economics.
    8. C. Richard Shumway, 1993. "Production economics: Worthwhile investment?," Agricultural Economics, International Association of Agricultural Economists, vol. 9(2), pages 89-108, August.
    9. Qinghua Liu & C. Richard Shumway, 2004. "Testing aggregation consistency across geography and commodities," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(3), pages 463-486, September.
    10. Thirtle, Colin, 1988. "Induced Innovation Theory and Agricultural Development in LDCs: An Appraisal," Manchester Working Papers in Agricultural Economics 232807, University of Manchester, School of Economics, Agricultural Economics Department.
    11. Lin, Ni & Davis, George C. & Shumway, C. Richard, 1998. "Aggregation Without Separability: Tests Of U.S. And Mexican Agricultural Production Data," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20927, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. Capalbo, Susan & Denny, Michael & Hoque, Anwarul & Overton, C. Edward, 1991. "Methodologies for Comparisons of Agricultural Output, Input, and Productivity: A Review and Synthesis," Staff Reports 278532, United States Department of Agriculture, Economic Research Service.
    13. Espey, Molly & Thilmany, Dawn D., 2000. "Farm Labor Demand: A Meta-Regression Analysis Of Wage Elasticities," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(1), pages 1-15, July.
    14. Veeman, T.S. & Fantino, A.A. & Rahuma, A.A., 1989. "Productivity Growth and Profitability in the Prarie Grains Sector," Project Report Series 232075, University of Alberta, Department of Resource Economics and Environmental Sociology.
    15. Matthew Andersen & Julian Alston & Philip Pardey, 2012. "Capital use intensity and productivity biases," Journal of Productivity Analysis, Springer, vol. 37(1), pages 59-71, February.
    16. Chambers, Robert G. & Pope, Rulon D., 1989. "What Do Aggregate Agricultural Supply and Demand Curves Mean?," Working Papers 197605, University of Maryland, Department of Agricultural and Resource Economics.
    17. Thilmany, Dawn D. & Espey, Molly, 1998. "Farm Labor Demand And Supply: A Meta-Analysis Of Wage Elasticities," 1998 Annual meeting, August 2-5, Salt Lake City, UT 21001, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    18. Moss, Charles B. & Erickson, Kenneth W. & Ball, V. Eldon & Mishra, Ashok K., 2003. "A Translog Cost Function Analysis Of U.S. Agriculture: A Dynamic Specification," 2003 Annual meeting, July 27-30, Montreal, Canada 22027, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    19. Chambers, Robert G. & Pope, Rulon D., 1989. "What Do Aggregate Agricultural Supply and Demand Curves Mean?," 1990 Conference (34th), February 13-15, 1990, Brisbane, Australia 144922, Australian Agricultural and Resource Economics Society.
    20. Capalbo, Susan M. & Ball, V. Eldon & Denny, Michael G. S., 1990. "International Comparisons of Agricultural Productivity: Development and Usefulness," 1990 Annual meeting, August 5-8, Vancouver, Canada 270853, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    21. Aradhyula, Satheesh Venkata, 1989. "Policy structure, output supply and input demand for US crops," ISU General Staff Papers 198901010800009909, Iowa State University, Department of Economics.
    22. Krakar, Janice Eileen, 1990. "Canadian agriculture factor retention under different policy regimes," ISU General Staff Papers 1990010108000010380, Iowa State University, Department of Economics.

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