Intertemporal and interfirm heterogeneity

Implications for pesticide productivity

Alain Carpentier, Robert D. Weaver

Research output: Contribution to journalArticle

5 Citations (Scopus)

Abstract

This paper presents evidence concerning the existence and implications of heterogeneity effects for estimates of the marginal productivity of pesticides. The paper extends the work of Carpentier and Weaver (1996a), which considered fixed effects that homothetically shift the conditional mean of output. This paper considers the implications of time-varying marginal productivity, allowing for nonhomothetic shifts in production. The extent and structure of heterogeneity found in French crop agriculture is first presented to illustrate that persistent heterogeneity exists across these firms. Next, we review the implications of such heterogeneity for econometric estimates and show that estimates of marginal productivity of pesticides will be biased when based on models that do not explicitly account for these types of heterogeneity across firms and time. An alternative estimation approach is proposed, based on Chamberlain (1982 and 1984) and implemented to produce asymptotically unbiased estimates and to statistically validate the model specification. Existence of fixed firm effects is statistically confirmed and temporal variation of marginal productivity is found to be substantial.

Original languageEnglish (US)
Pages (from-to)219-236
Number of pages18
JournalCanadian Journal of Agricultural Economics
Volume44
Issue number3
DOIs
StatePublished - Jan 1 1996

Fingerprint

pesticides
pesticide
productivity
econometrics
temporal variation
agriculture
crops
Productivity
Pesticides
crop
effect
firm

All Science Journal Classification (ASJC) codes

  • Global and Planetary Change
  • Ecology
  • Animal Science and Zoology
  • Agronomy and Crop Science
  • Economics and Econometrics

Cite this

@article{7bb81b06713c40b7af1cfa16cef0fd42,
title = "Intertemporal and interfirm heterogeneity: Implications for pesticide productivity",
abstract = "This paper presents evidence concerning the existence and implications of heterogeneity effects for estimates of the marginal productivity of pesticides. The paper extends the work of Carpentier and Weaver (1996a), which considered fixed effects that homothetically shift the conditional mean of output. This paper considers the implications of time-varying marginal productivity, allowing for nonhomothetic shifts in production. The extent and structure of heterogeneity found in French crop agriculture is first presented to illustrate that persistent heterogeneity exists across these firms. Next, we review the implications of such heterogeneity for econometric estimates and show that estimates of marginal productivity of pesticides will be biased when based on models that do not explicitly account for these types of heterogeneity across firms and time. An alternative estimation approach is proposed, based on Chamberlain (1982 and 1984) and implemented to produce asymptotically unbiased estimates and to statistically validate the model specification. Existence of fixed firm effects is statistically confirmed and temporal variation of marginal productivity is found to be substantial.",
author = "Alain Carpentier and Weaver, {Robert D.}",
year = "1996",
month = "1",
day = "1",
doi = "10.1111/j.1744-7976.1996.tb00147.x",
language = "English (US)",
volume = "44",
pages = "219--236",
journal = "Canadian Journal of Agricultural Economics",
issn = "0008-3976",
publisher = "Wiley-Blackwell",
number = "3",

}

Intertemporal and interfirm heterogeneity : Implications for pesticide productivity. / Carpentier, Alain; Weaver, Robert D.

In: Canadian Journal of Agricultural Economics, Vol. 44, No. 3, 01.01.1996, p. 219-236.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Intertemporal and interfirm heterogeneity

T2 - Implications for pesticide productivity

AU - Carpentier, Alain

AU - Weaver, Robert D.

PY - 1996/1/1

Y1 - 1996/1/1

N2 - This paper presents evidence concerning the existence and implications of heterogeneity effects for estimates of the marginal productivity of pesticides. The paper extends the work of Carpentier and Weaver (1996a), which considered fixed effects that homothetically shift the conditional mean of output. This paper considers the implications of time-varying marginal productivity, allowing for nonhomothetic shifts in production. The extent and structure of heterogeneity found in French crop agriculture is first presented to illustrate that persistent heterogeneity exists across these firms. Next, we review the implications of such heterogeneity for econometric estimates and show that estimates of marginal productivity of pesticides will be biased when based on models that do not explicitly account for these types of heterogeneity across firms and time. An alternative estimation approach is proposed, based on Chamberlain (1982 and 1984) and implemented to produce asymptotically unbiased estimates and to statistically validate the model specification. Existence of fixed firm effects is statistically confirmed and temporal variation of marginal productivity is found to be substantial.

AB - This paper presents evidence concerning the existence and implications of heterogeneity effects for estimates of the marginal productivity of pesticides. The paper extends the work of Carpentier and Weaver (1996a), which considered fixed effects that homothetically shift the conditional mean of output. This paper considers the implications of time-varying marginal productivity, allowing for nonhomothetic shifts in production. The extent and structure of heterogeneity found in French crop agriculture is first presented to illustrate that persistent heterogeneity exists across these firms. Next, we review the implications of such heterogeneity for econometric estimates and show that estimates of marginal productivity of pesticides will be biased when based on models that do not explicitly account for these types of heterogeneity across firms and time. An alternative estimation approach is proposed, based on Chamberlain (1982 and 1984) and implemented to produce asymptotically unbiased estimates and to statistically validate the model specification. Existence of fixed firm effects is statistically confirmed and temporal variation of marginal productivity is found to be substantial.

UR - http://www.scopus.com/inward/record.url?scp=0030343958&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=0030343958&partnerID=8YFLogxK

U2 - 10.1111/j.1744-7976.1996.tb00147.x

DO - 10.1111/j.1744-7976.1996.tb00147.x

M3 - Article

VL - 44

SP - 219

EP - 236

JO - Canadian Journal of Agricultural Economics

JF - Canadian Journal of Agricultural Economics

SN - 0008-3976

IS - 3

ER -