Estimation of Factor Augmenting Technical Change: The Case of US Agriculture

Kumbhakar, Subal

Estimation of Factor Augmenting Technical Change: The Case of US Agriculture

Indian Economic Review, 2004, vol. 39, issue 1, 31-53

Abstract: This paper deals with estimation of technical change through changes in input factor efficiency/productivity. The main advantage of this factor augmenting (FA) approach, unlike the generic time trend models of technical change, is that one can measure input-specific productivity, change in input productivity, and the contribution of each input to overall (aggregate) technical change. In general, one can obtain more information about the nature of technical change from the FA approach compared to the popular time trend models. We model FA technical change in both primal and dual setups. In the dual approach we consider both cost and profit functions in the single and multiple output cases. Output efficiency factors are also added in the multiple output FA cost function model. Time series and panel (state level) data from U.S. agriculture are used to estimate several FA cost function models. The standard time trend models are also estimated using both the data sets. A translog cost system is used for all the specifications. Finally, results from alternative models are analyzed. JEL Classification: 030

Keywords: Production; Cost and Profit Functions; Input Productivity; Input Biases (search for similar items in EconPapers)
Date: 2004
References: Add references at CitEc
Citations: View citations in EconPapers (1)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:dse:indecr:v:39:y:2004:i:1:p:31-53

Ordering information: This journal article can be ordered from
http://www.ierdse.org/

Access Statistics for this article

Indian Economic Review is currently edited by Pami Dua (Editor) & Ram Singh (Associate Editor) and Sunil Kanwar

More articles in Indian Economic Review from Department of Economics, Delhi School of Economics University of Delhi, Delhi 110 007. Contact information at EDIRC.
Bibliographic data for series maintained by Pami Dua ().