Testing Long‐Run Productivity Models for the Canadian and U.S. Agricultural Sectors

Abstract
The primary objective of this paper is to develop the linkages between the gross and net productivity indexes and the implied production structures. These linkages are developed as separability restrictions on various subgroups of inputs and time in a general production model. The restricted models are arranged in sequences for nested hypotheses testing. Empirical evidence from the U.S. and Canadian agricultural sectors based on a translog production function support the gross output total factor productivity structure. The net output Hicks neutrality hypothesis is rejected for both the United States and Canada.

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