Locationally varying production technology and productivity: a study of Norwegian farming

Speaker: Prof Gudbrand Lien

Affiliation: Inland Norway University of Applied Science

Location: Room 309, Steele Building (#03), UQ St Lucia campus

Abstract

In this study we exploit the information derived from geographical coordinates, combined with farm-level panel data, to identify spatial heterogeneity in farming. We specify and estimate a location-specific production function by using a semiparametric proxy variable regression estimator. The parameters are nonparametric functions of the geographical location of farms (measured by latitude and longitude) and are estimated via kernel methods. The productivity components of this model also allow for determinants. We estimate locationspecific technologies, in addition to location-specific productivity estimates, as opposed to the spatially autoregressive-type production function, which assumes a common technology for all locations. Compared with the geographically weighted semiparametric regressions approach, our method also accommodates endogenous regressors (via a proxy variable identification technique). We apply this locationally heterogeneous production technology and productivity model to a sample of Norwegian grain farmers using farm-level panel data that covers the period 2001--2020 and provide evidence that both technology and productivity vary by region for Norwegian grain farmers.

About the presenter's meeting

Prof Lien is visiting the School of Economics. While here, he will be using Room 504A, Level 5, Colin Clark Building. If you would like to meet with Prof Lien, please contact Prof Valentin Zelenyuk who will be his host while at The University of Queensland.