The Size Distribution of Farms and International Productivity Differences
American Economic Review
vol. 104,
no. 6, June 2014
(pp. 1667-97)
Abstract
We study the determinants of di fferences in farm-size across countries and their impact on agricultural and aggregate productivity using a quantitative sectoral model featuring a distribution of farms. Measured aggregate factors (capital, land, economy-wide productivity) account for ¼ of the observed differences in farm size and productivity. Policies and institutions that misallocate resources across farms have the potential to account for the remaining diff erences. Exploiting within-country variation in crop-specifi c price distortions and their correlation with farm size, we construct a cross-country measure of farm-size distortions which together with aggregate factors accounts for ½ of the cross-country diff erences in size and productivity.Citation
Adamopoulos, Tasso, and Diego Restuccia. 2014. "The Size Distribution of Farms and International Productivity Differences." American Economic Review, 104 (6): 1667-97. DOI: 10.1257/aer.104.6.1667Additional Materials
JEL Classification
- D24 Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- J24 Human Capital; Skills; Occupational Choice; Labor Productivity
- J43 Agricultural Labor Markets
- L11 Production, Pricing, and Market Structure; Size Distribution of Firms
- O13 Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
- Q12 Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
- Q18 Agricultural Policy; Food Policy