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Testing competing explanations for the inverse productivity puzzle

Author

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  • Juliano Junqueira Assunção

    (Department of Economics PUC-Rio)

  • Luiz Henrique Braido

    (EPGE/FGV)

Abstract

We use plot-level data from ICRISAT to assess competing explanations for an old empirical regularity - the inverse relationship between land productivity and farm size. The presence of farmers who simultaneously crop multiple plots with di¤erent sizes is used to test (and reject) explanations based on household heterogeneity. The panel nature of the data is explored to test (and refuse) explanations based on plot fixed characteristics. We are then left with explanations based on time-varying plot features or measurement errors in the plot size. Theoretically, the input choices should reflect both plot-specific features and the true plot size. Empirically, the inverse relationship vanishes when we control for input use.

Suggested Citation

  • Juliano Junqueira Assunção & Luiz Henrique Braido, 2005. "Testing competing explanations for the inverse productivity puzzle," Textos para discussão 500, Department of Economics PUC-Rio (Brazil).
    • Handle: RePEc:rio:texdis:500
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    References listed on IDEAS

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    Cited by:

    1. O’Gorman Melanie, 2015. "Africa’s missed agricultural revolution: a quantitative study of the policy options," The B.E. Journal of Macroeconomics, De Gruyter, vol. 15(2), pages 561-602, July.
    2. Ayal Kimhi, 2006. "Plot size and maize productivity in Zambia: is there an inverse relationship?," Agricultural Economics, International Association of Agricultural Economists, vol. 35(1), pages 1-9, July.
    3. Menale Kassie & John Pender & Mahmud Yesuf & Gunnar Kohlin & Randy Bluffstone & Elias Mulugeta, 2008. "Estimating returns to soil conservation adoption in the northern Ethiopian highlands," Agricultural Economics, International Association of Agricultural Economists, vol. 38(2), pages 213-232, March.

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    Keywords

    Development; farm size; productivity.;
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