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Explaining Total Factor Productivity Change in U.S ...

1 Explaining Total Factor Productivity Change in Agriculture: An Examination of Components By Darlington Sabasi* and C. Richard Shumway Darlington Sabasi is a Graduate Research Assistant, and C. Richard Shumway is a Regents Professor in the School of Economic Sciences, Washington State University, 101 Hulbert Hall, PO Box 646210, Pullman, WA 99163-6210. *Corresponding Author: e-mail: |Ph. 509-432-6973|Fax: 509-335-1173 Abstract Change in Total Factor Productivity can be decomposed into technical and efficiency Change measures. This paper examines factors driving three components of Total Factor Productivity Change in agriculture technical Change , technical efficiency Change , and scale and mix efficiency Change . We also examine Total Factor Productivity Change and contrast implications derived from the component models with those from a directly estimated Total Factor Productivity Change model. Our results show that technical Change is significantly impacted by innovation through public research and improved human capital through education and health care access.

1 Explaining Total Factor Productivity Change in U.S. Agriculture: An Examination of Components By Darlington Sabasi* and C. Richard Shumway Darlington Sabasi is a Ph.D. Graduate Research Assistant, and C. Richard Shumway is a Regents

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