Heterogeneity, Measurement Error, and Misallocation: Evidence from African Agriculture
Dates:
- Thu 18 Oct 2018 11.00 - 12.15
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2018-10-18 11:00
2018-10-18 12:15
Europe/Paris
Heterogeneity, Measurement Error, and Misallocation: Evidence from African Agriculture
Standard measures of productivity display enormous dispersion across farms in Africa. Crop yields and input intensities appear to vary greatly, seemingly in conflict with a model of efficient allocation across farms. In this paper, we present a theoretical framework for distinguishing between measurement error, unobserved heterogeneity, and potential misallocation. Using rich panel data from farms in Tanzania and Uganda, we estimate our model using a highly flexible specification in which we allow for several kinds of measurement error and heterogeneity. We find that measurement error and heterogeneity together account for a large fraction – perhaps two-thirds to three-quarters -- of the dispersion in measured productivity. We suggest that the potential for efficiency gains through reallocation may be relatively modest.
Co-author: Doug Gollin
Seminar Room,3rd Floor,V. la Fonte
DD/MM/YYYY
Seminar Room,3rd Floor,V. la Fonte
Standard measures of productivity display enormous dispersion across farms in Africa. Crop yields and input intensities appear to vary greatly, seemingly in conflict with a model of efficient allocation across farms. In this paper, we present a theoretical framework for distinguishing between measurement error, unobserved heterogeneity, and potential misallocation. Using rich panel data from farms in Tanzania and Uganda, we estimate our model using a highly flexible specification in which we allow for several kinds of measurement error and heterogeneity. We find that measurement error and heterogeneity together account for a large fraction – perhaps two-thirds to three-quarters -- of the dispersion in measured productivity. We suggest that the potential for efficiency gains through reallocation may be relatively modest.
Co-author: Doug Gollin
- Location:
- Seminar Room,3rd Floor,V. la Fonte
- Affiliation:
- Department of Economics
- Type:
- Seminar
- Organiser:
-
Prof. Ramon Marimon (EUI - Professor of Economics and Pierre Werner Chair)
- Speaker:
-
Christopher Udry (Northwestern University)
- Contact:
-
Rossella Corridori (Eco)
-
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