Accounting for Heterogeneity in Multicrop Micro‐Econometric Models: Implications for Variable Input Demand Modeling
研究了农场样本异质性对多作物投入分配方程和计量模型的影响,提出可操作的解决方案,并验证了异质性偏差的实际影响有限。
This article aims to show that if the farm sample under consideration is characterized by significant heterogeneity, recovering output‐specific input uses or modeling farm‐level input uses may be more complicated than previously recognized. The article theoretically investigates the problems implied by farm heterogeneity in input allocation equations and multicrop econometric models, proposes an empirically tractable solution for overcoming these problems, and assesses the empirical relevance of the theoretically identified problems. The results demonstrate that heterogeneity matters, but that the revealed heterogeneity bias has a limited impact on the empirical results.