TABLE 3

Parameter Estimates and Output Elasticities for Alternative Specifications of the Production Function

Holding LevelPlot Level
TranslogCobb-DouglasTranslogCobb-Douglas
Log plot area (hectares)0.308***
(14.163)
0.308***
(18.922)
0.339***
(21.566)
0.266***
(13.759
0.245***
(17.040)
Log labor (days)0.406***
(15.051)
0.410***
(19.620)
0.501***
(19.226)
0.481***
(22.277)
Log male family labor (days)0.107***
(5.510)
Log female family labor (days)0.170***
(8.346)
Log hired labor (days)0.123***
(6.431)
Log chemical fertilizer use (kg)0.133**
(2.033)
0.094***
(3.505)
0.095***
(3.121)
0.151***
(3.418)
0.134***
(3.877)
Log pesticide use ($)0.001
(0.024)
0.101***
(2.696)
0.107***
(2.823)
0.148
(1.477)
0.142***
(2.893)
Log manure use (kg)0.117***
(5.986)
0.118***
(7.943)
0.113***
(7.581
0.092***
(4.105)
0.102***
(5.140)
Dummy male family labor0.054
(0.859)
Dummy female family labor0.340***
(3.644)
Dummy hired labor−0.129**
(2.197)
Dummy chemical fertilizer use0.263*
(1.829)
0.160
(1.609)
0.085
(1.016)
−0.100
(1.580)
−0.128**
(2.130)
Dummy pesticide use−0.020
(0.220)
−0.029
(0.327
−0.076
(1.101)
0.111
(0.836)
0.107
(0.833)
Dummy manure use−0.336***
(8.012)
−0.341***
(8.394)
0.418***
(4.726)
−0.229***
(6.108)
−0.235***
(6.595)
Log(plot area in hectares)2−0.079***
(3.631)
−0.013
(0.886)
Log(male labor days)2−0.099***
(2.894)
−0.057*
(1.907)
Log(chemical fertilizer use in kg)2−0.008
(0.540)
0.012
(0.554)
Log(pesticide use in $)20.071**
(2.257)
−0.006
(0.118
Log(manure use in kg)2−0.013
(0.972)
0.015
(0.655
Log land × Log labor0.079***
(3.462)
0.055***
(3.384)
Log land × Log chemical fertilizer−0.024*
(1.650)
0.029
(1.185)
Log land × Log pesticide use−0.016
(0.478)
−0.018
(0.761)
Log land × Log manure use0.022
(1.635)
−0.002
(0.118)
Log labor × Log chemical fertilizer0.020
(1.160)
−0.014
(0.415)
Log labor × Log pesticide use−0.060
(1.504)
−0.015
(0.474)
Log labor × Log manure use−0.017
(1.005)
−0.019
(0.940)
Log chemical fertilizer × Log pesticide use0.003
(0.196)
0.050*
(1.713
Log chemical fertilizer × Log manure use−0.002
(0.212)
0.006
(0.200)
Log pesticide use × Log manure use0.008
(0.325)
0.031
(1.155)
Distance from homestead in minutes0.000
(0.944)
0.000
(1.095)
0.001*
(1.799)
−0.004***
(5.243)
−0.004***
(5.224)
Number of years plot possessed0.001
(1.457)
0.001
(1.319)
0.003**
(2.565)
0.001
(0.623)
0.001
(0.771)
Plot located in wet land0.004
(0.053)
0.008
(0.094)
0.024
(0.289)
−0.036
(0.651)
−0.032
(0.582)
Irrigated land0.008
(0.097)
−0.011
(0.147)
−0.039
(0.494)
−0.080
(1.070)
−0.080
(1.071)
Crop shock−0.213***
(6.131)
−0.209***
(6.031)
−0.203***
(5.829)
−0.217***
(6.202)
−0.218***
(6.215)
Share of area cultivated with grains−0.409
(1.609)
−0.488*
(1.960)
−0.542**
(2.166)
−0.307**
(2.285)
−0.287**
(2.154)
Share of area cultivated with tubers−0.180
(0.699)
−0.259
(1.028)
−0.265
(1.042)
−0.398***
(2.954)
−0.389***
(2.912)
Share of area with tree crops−0.001
(0.004)
−0.100
(0.396)
−0.194
(0.765)
0.143
(1.041)
0.158
(1.156)
Plot topography dummies/sharesYesYesYesYesYes
Soil type dummies/sharesYesYesYesYesYes
Constant−0.076
(0.264)
0.065
(0.248)
3.475***
(12.299)
0.127
(0.619)
0.131
(0.667)
Number of observations3,0623,0623,0627,3077,307
R-squared0.5790.5750.5720.4290.425
Output Elasticities
Land0.305***
(18.525)
0.308***
(18.922)
0.339***
(21.566)
0.246***
(16.971)
0.245***
(17.040)
Labor0.405***
(19.305)
0.410***
(19.620)
0.399***
(13.850)
0.480***
(22.097)
0.481***
(22.277)
Chemical fertilizer0.139**
(2.334)
0.094***
(3.505)
0.095***
(3.121)
0.132***
(3.766)
0.134***
(3.877)
Pesticides0.053
(1.122)
0.101***
(2.696)
0.107***
(2.823)
0.162*
(1.771)
0.142***
(2.893)
Manure0.115***
(7.555)
0.118***
(7.943)
0.113***
(7.581)
0.103***
(5.060)
0.102***
(5.140)
Marginal Products
Male family labor ($)0.666
(1.285)
Female family labor ($)0.539
(0.959)
Village-Level Market Wages
Male family labor ($)0.911
Female family labor ($)0.871
Returns to scale1.0171.0301.0541.1221.104
Test of const. returns to scale: F-value1.430.450.282.25**3.00*
  • Note: All holding-level regressions include village fixed effects, while plot-level regressions are estimated using household fixed effects. Most of the Allen cross elasticities are not statistically different from zero. Jointly, they are not or only marginally different fromzero. Marginal products of male and female family labor (shadow wages) are calculated using the formula Embedded Image, where Embedded Image is the coefficient on log of male (female) family labor, Embedded Image is predicted value of output, and L is male (female) family labor use in days (Jacoby 1993). Absolute value of t-statistics in parentheses.

  • * Significant at 10%

  • ** significant at 5%

  • *** significant at 1%.