Heterogeneity, Measurement Error, and Misallocation in African Agriculture: A Comment
Diego Restuccia () and
Working Papers from University of Toronto, Department of Economics
Gollin and Udry (2021) estimate the contribution of mismeasurement to productivity dispersion among production units and conclude that previous studies have overestimated the potential efficiency gains from factor reallocation. We show that this conclusion is incorrect based on their own empirical evidence, which instead corroborates the importance of misallocation emphasized in the macro-development literature. We also point out important limitations in the implementation of the plot-level analysis that overstates the importance of mismeasurement in understanding productivity differences.
Keywords: Plot; farm; misallocation; measurement error; agriculture; land institutions; distortions. (search for similar items in EconPapers)
JEL-codes: O4 (search for similar items in EconPapers)
Pages: Unknown pages
New Economics Papers: this item is included in nep-agr and nep-eff
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