Heterogeneity, Measurement Error, and Misallocation: Evidence from African Agriculture

Douglas Gollin () and Christopher Udry

Journal of Political Economy, 2021, vol. 129, issue 1, 1 - 80

Abstract: Standard measures of productivity display enormous dispersion across farms in Africa. Crop yields and input intensities appear to vary greatly, seemingly in conflict with a model of efficient allocation across farms. In this paper, we present a theoretical framework for distinguishing between measurement error, unobserved heterogeneity, and potential misallocation. Using rich panel data from farms in Tanzania and Uganda, we estimate our model using a flexible specification in which we allow for several kinds of measurement error and heterogeneity. We find that measurement error and heterogeneity together account for a large fraction of the dispersion in measured productivity.

Date: 2021
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Related works:
Working Paper: Heterogeneity, Measurement Error, and Misallocation: Evidence from African Agriculture (2019)
Working Paper: Heterogeneity, Measurement Error, and Misallocation: Evidence from African Agriculture (2019)
Working Paper: Heterogeneity, Measurement Error and Misallocation: Evidence from African Agriculture (2019)
Working Paper: Heterogeneity, Measurement Error, and Misallocation: Evidence from African Agriculture (2018)
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