Assessing Misallocation in Agriculture: Plots versus Farms / Fernando M. Aragón, Diego Restuccia, Juan Pablo Rud.

Format:

Book

Author/Creator:

Aragón, Fernando M.

Contributor:

National Bureau of Economic Research.

Restuccia, Diego.

Rud, Juan Pablo.

Series:

Working Paper Series (National Bureau of Economic Research) no. w29749.

NBER working paper series no. w29749

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2022.

Summary:

We assess the extent and cost of misallocation in agriculture in less-developed countries comparing the analysis at the plot and farm levels. Using detailed data from Uganda, we show that the plot-level analysis leads to extremely large estimates of reallocation gains, even after adjusting for measurement error and unobserved heterogeneity. These results reflect two empirical limitations of the plot as unit of analysis: excess measurement error and near constant returns to scale production estimates. We find limited evidence of substantial measurement error at the farm level.

Notes:

Print version record

February 2022.