NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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Fernando M. Aragon Sanchez

SFU, Dep. Economics
8888 University Drive, V5A 1S6, Burnaby, BC
Canada

E-Mail: EmailAddress: hidden: you can email any NBER-related person as first underscore last at nber dot org
Institutional Affiliation: Simon Fraser University

NBER Working Papers and Publications

September 2019Are Small Farms Really more Productive than Large Farms?
with Diego Restuccia, Juan Pablo Rud: w26331
In this paper we show that the study of the farm size-productivity relationship hinges on the choice of productivity measure. Our main insight is that using yields, a partial measure of productivity, may not be informative for the size-productivity relationship because, in addition to total factor productivity, yields pick up input markets distortions and deviations from constant returns to scale. We examine the empirical relevance of this insight using detailed microdata from Uganda. We find an inverse relationship between yields and farm size. We show the relationship turns positive when accounting for market distortions and returns to scale; or when using a farm-specific component of total factor productivity.
 
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