Measuring dynamic biased technical change in Lithuanian cereal farms

Tomas Baležentis and Alfons Oude Lansink

Agribusiness, 2020, vol. 36, issue 2, 208-225

Abstract: Changes in substitutability among inputs and outputs can help farms adapt to economic, technological, or societal changes. However, measurement of technical bias has only been carried out in a static framework, ignoring the confounding effects of technical bias due to adjustment costs. This paper integrates two streams of literature, that is one measuring dynamic inefficiency and the other measuring technical bias, thereby offering non‐parametric measures of technical bias for dynamic production technology. The dynamic framework explains the changes in the extent of output foregone to enable investments. The proposed framework is applied to a panel of data of Lithuanian cereal farms over the period 2004–2014. The results show technical change was, on average, more biased toward increasing output rather than investment. Technical change has been more focused on labor‐usage, relative to land and intermediate consumption in the same period.

Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/agr.21623

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:wly:agribz:v:36:y:2020:i:2:p:208-225

Access Statistics for this article

Agribusiness is currently edited by Ronald W. Cotterill

More articles in Agribusiness from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery (contentdelivery@wiley.com).