Abstract

http://ssrn.com/abstract=1275353
 
 

References (30)



 
 

Citations (3)



 


 



Reconsidering Conventional Explanations of the Inverse Productivity-Size Relationship


Christopher B. Barrett


Cornell University - Charles H. Dyson School of Applied Economics & Management

Marc F. Bellemare


University of Minnesota - Twin Cities - Department of Applied Economics

Janet Y. Hou


Cornell University

June 13, 2009

World Development, Vol. 38, No. 1, 2010

Abstract:     
The inverse productivity-size relationship is one of the oldest puzzles in development economics. Two conventional explanations for the inverse relationship have emerged in the literature: (i) factor market imperfections that cause cross-sectional variation in household-specific shadow prices and thereby induce variation in input application rates; and (ii) the omission of soil quality measurements that are inversely correlated with farm or plot size but positively associated with yields. This study uniquely employs precise soil quality measurements at the plot level with multiple plots per household so as to allow testing of both conventional explanations simultaneously. Our empirical results show that, in these data, only a small portion of the inverse productivity-size relationship is explained by market imperfections and none of it seems attributable to the omission of soil quality measurements.

Number of Pages in PDF File: 38

Keywords: Inverse Relationship, Productivity, Market Failures, Soil Characteristics, Sub-Saharan Africa, Madagascar

JEL Classification: D24, O12, O13, Q12

Accepted Paper Series


Download This Paper

Date posted: September 30, 2008 ; Last revised: May 24, 2011

Suggested Citation

Barrett, Christopher B. and Bellemare, Marc F. and Hou, Janet Y., Reconsidering Conventional Explanations of the Inverse Productivity-Size Relationship (June 13, 2009). World Development, Vol. 38, No. 1, 2010. Available at SSRN: http://ssrn.com/abstract=1275353

Contact Information

Christopher B. Barrett
Cornell University - Charles H. Dyson School of Applied Economics & Management ( email )
315 Warren Hall
Ithaca, NY 14853-7801
United States
607-255-4489 (Phone)
607-255-9984 (Fax)
HOME PAGE: http://aem.cornell.edu/faculty_sites/cbb2/
Marc F. Bellemare (Contact Author)
University of Minnesota - Twin Cities - Department of Applied Economics ( email )
MN
United States
Janet Y. Hou
Cornell University ( email )
Ithaca, NY 14853
United States
Feedback to SSRN


Paper statistics
Abstract Views: 752
Downloads: 142
Download Rank: 119,450
References:  30
Citations:  3

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo4 in 0.328 seconds