Abstract
This paper investigates how land size measurements vary across three common land measurement methods (farmer estimated, Global Positioning System (GPS), and compass and rope), and the effect of land size measurement error on the inverse farm size relationship and input demand functions. The analysis utilizes plot-level data from the second wave of the Nigeria General Household Survey Panel, as well as a supplementary land validation survey covering a subsample of General Household Survey Panel plots. Using this data, both GPS and self-reported farmer estimates can be compared with the gold standard compass and rope measurements on the same plots. The findings indicate that GPS measurements are more reliable than farmer estimates, where self-reported measurement bias leads to over-reporting land sizes of small plots and under-reporting of large plots. The error observed across land measurement methods is nonlinear and results in biased estimates of the inverse land size relationship. Input demand functions that rely on self-reported land measures significantly underestimate the effect of land on input utilization, including fertilizer and household labor.
Highlights
Land measurement is critical to empirical development analyses and national agricultural statistical reporting
In this paper we aim to investigate (1) how land size measurements vary across measurement methodologies, and (2) the econometric and policy implications of land measurement error in estimation of common agricultural relationships found in the literature
The SR estimate for medium plots is reduced with a coefficient of -0.038, suggesting that SR measurement error may bias the estimate of the demand for hired labor downwards
Summary
Land measurement is critical to empirical development analyses and national agricultural statistical reporting. Land holdings are dependent variables, independent variables or a relative component indicating the scale of production in key empirical relationships estimated in development economics. Aggregate land holdings measure a household’s wealth stock in rural areas. Plot sizes are an input in agricultural production functions. Accurate yield measures and input intensities are essential to the estimation of the inverse-land size relationship and input demand functions, and the policy decisions driven by these estimations. A large econometric literature has assessed the effect of measurement error, non-random measurement error on empirical relationships (see for example the reviews in Hausman 2001 and Wooldridge 2008, among others), though specific applications to the above mentioned empirical relationships in development economics remains limited
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
