Correlated non-classical measurement errors, ‘second best’ policy inference and the inverse size-productivity relationship in agriculture

We show analytically and empirically that non-classical measurement errors in the two key variables in a hypothesized relationship can bias the estimated relationship between them in any direction. Furthermore, if these measurement errors are correlated, correcting for either one alone can aggravate...

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Autores principales: Abay, Kibrom A., Abate, Gashaw T., Barrett, Christopher B., Bernard, Tanguy
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2018
Materias:
Acceso en línea:https://hdl.handle.net/10568/146659
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author Abay, Kibrom A.
Abate, Gashaw T.
Barrett, Christopher B.
Bernard, Tanguy
author_browse Abate, Gashaw T.
Abay, Kibrom A.
Barrett, Christopher B.
Bernard, Tanguy
author_facet Abay, Kibrom A.
Abate, Gashaw T.
Barrett, Christopher B.
Bernard, Tanguy
author_sort Abay, Kibrom A.
collection Repository of Agricultural Research Outputs (CGSpace)
description We show analytically and empirically that non-classical measurement errors in the two key variables in a hypothesized relationship can bias the estimated relationship between them in any direction. Furthermore, if these measurement errors are correlated, correcting for either one alone can aggravate bias in the parameter estimate of interest relative to ignoring mismeasurement in both variables, a ‘second best’ result with implications for a broad class of economic phenomena of policy interest. We illustrate these results empirically by demonstrating the implications of mismeasured agricultural output and plot size for the long-debated (inverse) relationship between size and productivity.
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spelling CGSpace1466592025-11-06T07:21:42Z Correlated non-classical measurement errors, ‘second best’ policy inference and the inverse size-productivity relationship in agriculture Abay, Kibrom A. Abate, Gashaw T. Barrett, Christopher B. Bernard, Tanguy household surveys accuracy measurement field size smallholders productivity agricultural development wheat errors We show analytically and empirically that non-classical measurement errors in the two key variables in a hypothesized relationship can bias the estimated relationship between them in any direction. Furthermore, if these measurement errors are correlated, correcting for either one alone can aggravate bias in the parameter estimate of interest relative to ignoring mismeasurement in both variables, a ‘second best’ result with implications for a broad class of economic phenomena of policy interest. We illustrate these results empirically by demonstrating the implications of mismeasured agricultural output and plot size for the long-debated (inverse) relationship between size and productivity. 2018-02-15 2024-06-21T09:07:58Z 2024-06-21T09:07:58Z Working Paper https://hdl.handle.net/10568/146659 en https://hdl.handle.net/10568/148474 https://hdl.handle.net/10568/148002 https://hdl.handle.net/10568/148025 https://hdl.handle.net/10568/153895 Open Access application/pdf International Food Policy Research Institute Abay, Kibrom A.; Abate, Gashaw T.; Barrett, Christopher B.; and Bernard, Tanguy. 2018. Correlated non-classical measurement errors, ‘second best’ policy inference and the inverse size-productivity relationship in agriculture. IFPRI Discussion Paper 1710. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/146659
spellingShingle household surveys
accuracy
measurement
field size
smallholders
productivity
agricultural development
wheat
errors
Abay, Kibrom A.
Abate, Gashaw T.
Barrett, Christopher B.
Bernard, Tanguy
Correlated non-classical measurement errors, ‘second best’ policy inference and the inverse size-productivity relationship in agriculture
title Correlated non-classical measurement errors, ‘second best’ policy inference and the inverse size-productivity relationship in agriculture
title_full Correlated non-classical measurement errors, ‘second best’ policy inference and the inverse size-productivity relationship in agriculture
title_fullStr Correlated non-classical measurement errors, ‘second best’ policy inference and the inverse size-productivity relationship in agriculture
title_full_unstemmed Correlated non-classical measurement errors, ‘second best’ policy inference and the inverse size-productivity relationship in agriculture
title_short Correlated non-classical measurement errors, ‘second best’ policy inference and the inverse size-productivity relationship in agriculture
title_sort correlated non classical measurement errors second best policy inference and the inverse size productivity relationship in agriculture
topic household surveys
accuracy
measurement
field size
smallholders
productivity
agricultural development
wheat
errors
url https://hdl.handle.net/10568/146659
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