Components of agricultural productivity change: Replication of US evidence and extension to the EU

Composantes de l'évolution de la productivité agricole: Reproduction des données américaines et extension à l'UE

Stefan Wimmer and K Hervé Dakpo
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Stefan Wimmer: ETH Zürich - Eidgenössische Technische Hochschule - Swiss Federal Institute of Technology [Zürich]
K Hervé Dakpo: UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement

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Abstract: Increasing agricultural productivity is a policy priority in many countries. O'Donnell (Am. J. Agric. Econ. 94(4): 873–890, 2012) decomposed productivity change in US agriculture using a Lowe total factor productivity (TFP) index. We replicate the original study, assess its robustness to alternative TFP indices, and extend the analysis to EU agriculture. We consistently find that productivity growth in US agriculture is mainly driven by technical progress. In EU agriculture, TFP growth is less pronounced, and both technical change and efficiency change contribute to productivity changes. In both US and EU agriculture, the magnitude of measured productivity change varies across indices, highlighting the need to rely on multiple indices for robust policy recommendations.

Keywords: Agricultural productivity; Index measurement; Productivity decomposition; Total factor productivity (search for similar items in EconPapers)
Date: 2023
Note: View the original document on HAL open archive server: https://hal.inrae.fr/hal-04125659v1
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Published in Applied Economic Perspectives and Policy, 2023, 45 (3), pp.1332-1355. ⟨10.1002/aepp.13377⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04125659

DOI: 10.1002/aepp.13377

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