Simple Econometrics of Pesticide Productivity

Abstract

Abstract This paper develops a multioutput generalization of the Lichtenberg‐Zilberman damage‐control technology. The dual representation of the technology is shown to be conditionally additive in the price of abatement activities and other prices. An econometric procedure for estimating the dual technology is developed and applied to an aggregate U.S. agricultural data set. The conditionally additive nature of the model allows estimation of pest damage from the dual technology. Our estimates of aggregate U.S. pest damage are much lower than previous estimates.

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