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Using Agricultural Production Functions to Analyse Land Tenure Reforms

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Agricultural Policy Analysis
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Abstract

Agricultural land policy changes have important implications for an economy. Their effect on agricultural productivity is of great interest. This chapter aims to provide the necessary knowledge and skills to carry out an ex post analysis employing econometric techniques to understand the impact of agricultural land policies (pertaining to tenure rights and land sizes) on agricultural productivity. Specifically, upon completing the chapter, the reader should be able to evaluate the impact of changing land plot sizes on agricultural productivity and, by using a simple dummy variable method, the effect of ownership on agricultural productivity employing the Excel spreadsheet or STATA software. The chapter concludes with an exercise to practice the methods explained in the chapter with a data set provided.

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Notes

  1. 1.

    The first form of a translog production function involved the approximation of a CES production function with a second-order Taylor series when the elasticity of substitution is very close to one.

  2. 2.

    Analysis ToolPak is available in all versions of Excel from 2003 to 2019 but is not enabled by default. It needs to be turned on manually. Follow the instructions given in this link to manually add ToolPak: https://www.excel-easy.com/data-analysis/analysis-toolpak.html

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© 2022 The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.

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Hemachandra, D. (2022). Using Agricultural Production Functions to Analyse Land Tenure Reforms. In: Weerahewa, J., Jacque, A. (eds) Agricultural Policy Analysis. Springer, Singapore. https://doi.org/10.1007/978-981-16-3284-6_15

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