Accounting for (In)Efficiency in the Estimation of Time-Varying Returns to Scale

Saleem Shaik

No 44308, Agribusiness & Applied Economics Report from North Dakota State University, Department of Agribusiness and Applied Economics

Abstract: This paper has a two-fold contribution. First, it examines the importance of accounting for (in)efficiency in the estimation of primal production function on the input elasticities, technical change, and calculation of returns to scale. Second, it applies a variant of the rolling regression technique to identify time-varying input elasticities, technical change, and return to scale. Empirical application to the Asian agriculture sector using Food and Agricultural Organization data from 1961-2005 indicates returns to scale are underestimated by the traditional pooled and panel models. Further, the time-varying estimates of input elasticities, technical change, and returns to scale indicate variations with each additional year of information.

Keywords: Agribusiness (search for similar items in EconPapers)
Pages: 22
Date: 2008-10
New Economics Papers: this item is included in nep-agr, nep-eff and nep-sea
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:nddaae:44308

DOI: 10.22004/ag.econ.44308

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