Parameter Estimates and Output Elasticities for Alternative Specifications of the Production Function
Holding Level | Plot Level | ||||
---|---|---|---|---|---|
Translog | Cobb-Douglas | Translog | Cobb-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 labor | 0.054 (0.859) | ||||
Dummy female family labor | 0.340*** (3.644) | ||||
Dummy hired labor | −0.129** (2.197) | ||||
Dummy chemical fertilizer use | 0.263* (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 $)2 | 0.071** (2.257) | −0.006 (0.118 | |||
Log(manure use in kg)2 | −0.013 (0.972) | 0.015 (0.655 | |||
Log land × Log labor | 0.079*** (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 use | 0.022 (1.635) | −0.002 (0.118) | |||
Log labor × Log chemical fertilizer | 0.020 (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 use | 0.003 (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 use | 0.008 (0.325) | 0.031 (1.155) | |||
Distance from homestead in minutes | 0.000 (0.944) | 0.000 (1.095) | 0.001* (1.799) | −0.004*** (5.243) | −0.004*** (5.224) |
Number of years plot possessed | 0.001 (1.457) | 0.001 (1.319) | 0.003** (2.565) | 0.001 (0.623) | 0.001 (0.771) |
Plot located in wet land | 0.004 (0.053) | 0.008 (0.094) | 0.024 (0.289) | −0.036 (0.651) | −0.032 (0.582) |
Irrigated land | 0.008 (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/shares | Yes | Yes | Yes | Yes | Yes |
Soil type dummies/shares | Yes | Yes | Yes | Yes | Yes |
Constant | −0.076 (0.264) | 0.065 (0.248) | 3.475*** (12.299) | 0.127 (0.619) | 0.131 (0.667) |
Number of observations | 3,062 | 3,062 | 3,062 | 7,307 | 7,307 |
R-squared | 0.579 | 0.575 | 0.572 | 0.429 | 0.425 |
Output Elasticities | |||||
Land | 0.305*** (18.525) | 0.308*** (18.922) | 0.339*** (21.566) | 0.246*** (16.971) | 0.245*** (17.040) |
Labor | 0.405*** (19.305) | 0.410*** (19.620) | 0.399*** (13.850) | 0.480*** (22.097) | 0.481*** (22.277) |
Chemical fertilizer | 0.139** (2.334) | 0.094*** (3.505) | 0.095*** (3.121) | 0.132*** (3.766) | 0.134*** (3.877) |
Pesticides | 0.053 (1.122) | 0.101*** (2.696) | 0.107*** (2.823) | 0.162* (1.771) | 0.142*** (2.893) |
Manure | 0.115*** (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 scale | 1.017 | 1.030 | 1.054 | 1.122 | 1.104 |
Test of const. returns to scale: F-value | 1.43 | 0.45 | 0.28 | 2.25** | 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 , where
is the coefficient on log of male (female) family labor,
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%.