Assessing Misallocation in Agriculture: Plots versus Farms

Fernando M. Aragón, Diego Restuccia and Juan Pablo Rud
Additional contact information
Fernando M. Aragón: Simon Fraser University
Juan Pablo Rud: Royal Holloway, University of London

No 130, Working Papers from Red Nacional de Investigadores en Economía (RedNIE)

Abstract: We assess the extent and cost of misallocation in agriculture in less-developed countries comparing the analysis at the plot and farm levels. Using detailed data from Uganda, we show that the plot-level analysis leads to extremely large estimates of reallocation gains, even after adjusting for measurement error and unobserved heterogeneity. These results reflect two empirical limitations of the plot as unit of analysis: excess measurement error and near constant returns to scale production estimates. We find limited evidence of substantial measurement error at the farm level.

Keywords: Plot; farm; misallocation; measurement error; agriculture; distortions (search for similar items in EconPapers)
JEL-codes: O4 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2022-04
New Economics Papers: this item is included in nep-agr, nep-dev and nep-eff
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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https://rednie.eco.unc.edu.ar/files/DT/130.pdf (application/pdf)

Related works:
Journal Article: Assessing misallocation in agriculture: Plots versus farms (2024)
Working Paper: Assessing misallocation in agriculture: plots versus farms (2024)
Working Paper: Assessing Misallocation in Agriculture: Plots versus Farms (2022)
Working Paper: Assessing misallocation in agriculture: plots versus farms (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:aoz:wpaper:130

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