Specification and estimation of production functions involving damage control inputs: A two-stage, semiparametric approach

Research output: Contribution to journalArticleScientificpeer-review

Researchers

Research units

  • Leibniz University Hannover
  • Wageningen University

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.

Details

Original languageEnglish
Pages (from-to)499-511
Number of pages13
JournalAmerican Journal of Agricultural Economics
Volume88
Issue number2
Publication statusPublished - May 2006
MoE publication typeA1 Journal article-refereed

    Research areas

  • Biotechnology, Damage control, Data envelopment analysis (DEA), Productivity analysis, Semiparametric model

ID: 16411889