[go: up one dir, main page]
More Web Proxy on the site http://driver.im/
IDEAS home Printed from https://ideas.repec.org/a/bla/agecon/v52y2021i4p633-644.html
   My bibliography  Save this article

Microdata analysis of Japanese farmers’ productivity: Estimating farm heterogeneity and elasticity of substitution among varieties

Author

Listed:
  • Yuko Akune
  • Nobuhiro Hosoe
Abstract
Modern theories of trade and economic geography consider the role of product differentiation under monopolistic competition in manufacturing, under the assumption that agriculture produces homogeneous goods. By contrast, agribusiness studies examine the case of active high‐productivity entrepreneurs who pursue product differentiation by creating new products. To reconcile these two contradicting views of agriculture, we examine the incidence of farm heterogeneity and product differentiation. We use microdata of Japanese farmers to estimate their total factor productivity and find that heterogeneity is relatively low in the fruit, rice, and greenhouse horticulture farming sectors, and high in the livestock and poultry sectors. We find that the degree of product differentiation is relatively high in the livestock and poultry sectors, and that elasticity of substitution in the vegetable and upland field farming sectors is around three, which is similar to the findings of earlier studies.

Suggested Citation

  • Yuko Akune & Nobuhiro Hosoe, 2021. "Microdata analysis of Japanese farmers’ productivity: Estimating farm heterogeneity and elasticity of substitution among varieties," Agricultural Economics, International Association of Agricultural Economists, vol. 52(4), pages 633-644, July.
    • Handle: RePEc:bla:agecon:v:52:y:2021:i:4:p:633-644
    DOI: 10.1111/agec.12639
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/agec.12639
    Download Restriction: no
    File URL: https://libkey.io/10.1111/agec.12639?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Luis Garicano & Claire Lelarge & John Van Reenen, 2016. "Firm Size Distortions and the Productivity Distribution: Evidence from France," American Economic Review, American Economic Association, vol. 106(11), pages 3439-3479, November.
    2. Andrew B. Bernard & Jonathan Eaton & J. Bradford Jensen & Samuel Kortum, 2003. "Plants and Productivity in International Trade," American Economic Review, American Economic Association, vol. 93(4), pages 1268-1290, September.
    3. Vincenzo Verardi & Catherine Vermandele, 2018. "Univariate and multivariate outlier identification for skewed or heavy-tailed distributions," Stata Journal, StataCorp LP, vol. 18(3), pages 517-532, September.
    4. Deselnicu, Oana C. & Costanigro, Marco & Souza-Monteiro, Diogo M. & McFadden, Dawn Thilmany, 2013. "A Meta-Analysis of Geographical Indication Food Valuation Studies: What Drives the Premium for Origin-Based Labels?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(2), pages 1-16, August.
    5. Frank A. Cowell & Emmanuel Flachaire, 2014. "Statistical Methods for Distributional Analysis," Working Papers halshs-01115996, HAL.
    6. Chun Kwon Yoo & Munisamy Gopinath & Hanho Kim, 2012. "Trade Policy Reform, Productivity Growth and Welfare in South Korean Agriculture," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 34(3), pages 472-488.
    7. Balistreri, Edward J. & Hillberry, Russell H. & Rutherford, Thomas F., 2011. "Structural estimation and solution of international trade models with heterogeneous firms," Journal of International Economics, Elsevier, vol. 83(2), pages 95-108, March.
    8. Kano, Kazuko & Kano, Takashi & Takechi, Kazutaka, 2013. "Exaggerated death of distance: Revisiting distance effects on regional price dispersions," Journal of International Economics, Elsevier, vol. 90(2), pages 403-413.
    9. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
    10. Milu Muyanga & T S Jayne, 2019. "Revisiting the Farm Size-Productivity Relationship Based on a Relatively Wide Range of Farm Sizes: Evidence from Kenya," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 101(4), pages 1140-1163.
    11. K. Hervé Dakpo & Yann Desjeux & Philippe Jeanneaux & Laure Latruffe, 2019. "Productivity, technical efficiency and technological change in French agriculture during 2002-2015: a Färe-Primont index decomposition using group frontiers and meta-frontier," Applied Economics, Taylor & Francis Journals, vol. 51(11), pages 1166-1182, March.
    12. Matthieu Crozet & Pamina Koenig, 2010. "Structural gravity equations with intensive and extensive margins," Canadian Journal of Economics, Canadian Economics Association, vol. 43(1), pages 41-62, February.
    13. Yoshimi Kuroda, 2013. "Production Structure and Productivity of Japanese Agriculture," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-137-28764-9, March.
    14. Amanda Norris & John Cranfield, 2019. "Consumer Preferences for Country-of-Origin Labeling in Protected Markets: Evidence from the Canadian Dairy Market," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 41(3), pages 391-403.
    15. Peter Slade & Jeffrey D Michler & Anna Josephson, 2019. "Foreign Geographical Indications, Consumer Preferences, and the Domestic Market for Cheese," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 41(3), pages 370-390.
    16. Maynard, Leigh J. & Hartell, Jason G. & Meyer, A. Lee & Hao, Jianqiang, 2004. "An experimental approach to valuing new differentiated products," Agricultural Economics, Blackwell, vol. 31(2-3), pages 317-325, December.
    17. Marc J. Melitz & Giancarlo I. P. Ottaviano, 2021. "Market Size, Trade, and Productivity," World Scientific Book Chapters, in: Firms and Workers in a Globalized World Larger Markets, Tougher Competition, chapter 4, pages 87-108, World Scientific Publishing Co. Pte. Ltd..
    18. Marc J. Melitz & Gianmarco I. P. Ottaviano, 2008. "Market Size, Trade, and Productivity (DOI:10.111/j.1467-937x.2007.00463.x)," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 75(3), pages 985-985.
    19. Yoshimi Kuroda, 2013. "Production Structure and Productivity of Japanese Agriculture," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-137-28761-8, March.
    20. Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-959, December.
    21. Olley, G Steven & Pakes, Ariel, 1996. "The Dynamics of Productivity in the Telecommunications Equipment Industry," Econometrica, Econometric Society, vol. 64(6), pages 1263-1297, November.
    22. Amanda Norris & John Cranfield, 2019. "Consumer Preferences for Country‐of‐Origin Labeling in Protected Markets: Evidence from the Canadian Dairy Market," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(3), pages 391-403, September.
    23. Daniel A. Ackerberg & Kevin Caves & Garth Frazer, 2015. "Identification Properties of Recent Production Function Estimators," Econometrica, Econometric Society, vol. 83, pages 2411-2451, November.
    24. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
    25. Ryuhei Wakasugi (ed.), 2014. "Internationalization of Japanese Firms," Springer Books, Springer, edition 127, number 978-4-431-54532-3, January.
    26. James Levinsohn & Amil Petrin, 2003. "Estimating Production Functions Using Inputs to Control for Unobservables," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 70(2), pages 317-341.
    27. Thierry Mayer & Gianmarco I.P. Ottaviano, 2008. "The Happy Few: New Facts on the Internationalization of European Firms Based on Firm-level Evidence," L'industria, Società editrice il Mulino, issue 2, pages 221-244.
    28. Andrés Charry & Manuel Narjes & Karen Enciso & Michael Peters & Stefan Burkart, 2019. "Sustainable intensification of beef production in Colombia—Chances for product differentiation and price premiums," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 7(1), pages 1-18, December.
    29. C. Richard Shumway & Barbara M. Fraumeni & Lilyan E. Fulginiti & Jon D. Samuels & Spiro E. Stefanou, 2016. "U.S. Agricultural Productivity: A Review of USDA Economic Research Service Methods," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 38(1), pages 1-29.
    30. Colin Carter & Barry Krissoff & Alix Peterson Zwane, 2006. "Can Country‐of‐Origin Labeling Succeed as a Marketing Tool for Produce? Lessons from Three Case Studies," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(4), pages 513-530, December.
    31. MATSUURA Toshiyuki & HAYAKAWA Kazunobu & KATO Masatoshi, 2008. "A Survey of Research on Productivity Analysis Using Microdata - Impact of Entry, Exit, Economic Globalization, Innovation and Systemic Reform (Japanese)," Policy Discussion Papers (Japanese) 08007, Research Institute of Economy, Trade and Industry (RIETI).
    32. Daniel A. Sumner, 2014. "American Farms Keep Growing: Size, Productivity, and Policy," Journal of Economic Perspectives, American Economic Association, vol. 28(1), pages 147-166, Winter.
    33. Xavier Gabaix, 2009. "Power Laws in Economics and Finance," Annual Review of Economics, Annual Reviews, vol. 1(1), pages 255-294, May.
    34. Vincenzo Mollisi & Gabriele Rovigatti, 2017. "Theory and Practice of TFP Estimation: the Control Function Approach Using Stata," CEIS Research Paper 399, Tor Vergata University, CEIS, revised 14 Feb 2017.
    35. Ackerberg, Daniel & Caves, Kevin & Frazer, Garth, 2006. "Structural identification of production functions," MPRA Paper 38349, University Library of Munich, Germany.
    36. Gabriele Rovigatti & Vincenzo Mollisi, 2018. "Theory and practice of total-factor productivity estimation: The control function approach using Stata," Stata Journal, StataCorp LP, vol. 18(3), pages 618-662, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hosoe, Nobuhiro & Akune, Yuko, 2020. "Can the Japanese agri-food producers survive under freer trade? A general equilibrium analysis with farm heterogeneity and product differentiation," Japan and the World Economy, Elsevier, vol. 55(C).
    2. YAHATA, Tomonori & NAKATANI, Tomoaki & NAKASHIMA, Yasuhiro & SENDA, Tetsuji & FUJIE, Takeshi, 2024. "Total Factor Productivity and its Decomposition of Multi-Output Paddy Farming in Japan," IAAE 2024 Conference, August 2-7, 2024, New Delhi, India 344326, International Association of Agricultural Economists (IAAE).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hosoe, Nobuhiro & Akune, Yuko, 2020. "Can the Japanese agri-food producers survive under freer trade? A general equilibrium analysis with farm heterogeneity and product differentiation," Japan and the World Economy, Elsevier, vol. 55(C).
    2. Macedoni, Luca & Weinberger, Ariel, 2022. "Quality heterogeneity and misallocation: The welfare benefits of raising your standards," Journal of International Economics, Elsevier, vol. 134(C).
    3. Costinot, Arnaud & Rodríguez-Clare, Andrés, 2014. "Trade Theory with Numbers: Quantifying the Consequences of Globalization," Handbook of International Economics, in: Gopinath, G. & Helpman, . & Rogoff, K. (ed.), Handbook of International Economics, edition 1, volume 4, chapter 0, pages 197-261, Elsevier.
    4. Jan De Loecker & Pinelopi K. Goldberg & Amit K. Khandelwal & Nina Pavcnik, 2016. "Prices, Markups, and Trade Reform," Econometrica, Econometric Society, vol. 84, pages 445-510, March.
    5. Nobuhiro Hosoe & Yuko Akune, 2019. "Can the Japanese Agri-food Sectors Survive by Promoting their Exports?:A General Equilibrium Analysis with Farm Heterogeneity and Product Differentiation," GRIPS Discussion Papers 19-06, National Graduate Institute for Policy Studies.
    6. Hsu, Wen-Tai & Lu, Yi & Wu, Guiying Laura, 2020. "Competition, markups, and gains from trade: A quantitative analysis of China between 1995 and 2004," Journal of International Economics, Elsevier, vol. 122(C).
    7. Ariel Weinberger, 2015. "Markups and misallocation with trade and heterogeneous firms," Globalization Institute Working Papers 251, Federal Reserve Bank of Dallas.
    8. Umut Kılınç, 2018. "Assessing Productivity Gains from International Trade in a Small Open Economy," Open Economies Review, Springer, vol. 29(5), pages 953-980, November.
    9. Flora Bellone & Patrick Musso & Lionel Nesta & Frederic Warzynski, 2016. "International trade and firm-level markups when location and quality matter," Journal of Economic Geography, Oxford University Press, vol. 16(1), pages 67-91.
    10. Bloom, Nick & Manova, Kalina & Teng Sun, Stephen & Van Reenen, John & Yu, Zhihong, 2018. "Managing trade: evidence from China and the US," LSE Research Online Documents on Economics 88703, London School of Economics and Political Science, LSE Library.
    11. Mahdi Ghodsi, 2020. "Is Austria’s economy locked-in in the CESEE region? Austria’s competitiveness at the micro-level," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 47(3), pages 669-693, August.
    12. Xunyong Xiang & Feixiang Chen & Chun†Yu Ho & Wen Yue, 2017. "Heterogeneous effects of trade liberalisation on firm†level markups: Evidence from China," The World Economy, Wiley Blackwell, vol. 40(8), pages 1667-1686, August.
    13. Dobbelaere, Sabien & Kiyota, Kozo, 2018. "Labor market imperfections, markups and productivity in multinationals and exporters," Labour Economics, Elsevier, vol. 53(C), pages 198-212.
    14. Frederic Warzynski & Jan De Loecker, 2010. "Markups and Firm-level Exports," 2010 Meeting Papers 438, Society for Economic Dynamics.
    15. Alvaro Garcia Marin & Nico Voigtländer, 2018. "Product-Level Efficiency and Core Competence in Multi-Product Plants," 2018 Meeting Papers 737, Society for Economic Dynamics.
    16. Melitz, Marc J. & Redding, Stephen J., 2014. "Heterogeneous Firms and Trade," Handbook of International Economics, in: Gopinath, G. & Helpman, . & Rogoff, K. (ed.), Handbook of International Economics, edition 1, volume 4, chapter 0, pages 1-54, Elsevier.
    17. Chen Yeh, 2016. "Are firm-level idiosyncratic shocks important for U.S. aggregate volatility?," Working Papers 16-47, Center for Economic Studies, U.S. Census Bureau.
    18. Tomlin, Ben, 2014. "Exchange rate fluctuations, plant turnover and productivity," International Journal of Industrial Organization, Elsevier, vol. 35(C), pages 12-28.
    19. Chen Yeh, 2017. "Are firm-level idiosyncratic shocks important for U.S. aggregate volatility?," Working Papers 17-23, Center for Economic Studies, U.S. Census Bureau.
    20. Ahmad, Saad & Akgul, Zeynep, 2018. "Using Power Laws to Identify the Structural Parameters of Trade Models with Firm Heterogeneity," Conference papers 332993, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:agecon:v:52:y:2021:i:4:p:633-644. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.