MACROECONOMIC SHOCKS, HUMAN CAPITAL AND PRODUCTIVE EFFICIENCY: EVIDENCE FROM WEST AFRICAN FARMERS

Little empirical work has quantified the transitory effects of macroeconomic shocks on farm-level production behavior. We develop a simple analytical model to explain how macroeconomic shocks might temporarily divert managerial attention, thereby affecting farm-level productivity, but perhaps to different degrees and for different durations across production units. We then successfully test hypotheses from that model using panel data bracketing massive currency devaluation in the west African nation of Cote d'Ivoire. We find a transitory increase in mean plot-level technical inefficiency among Ivorien rice producers and considerable variation in the magnitude and persistence of this effect, attributable largely to ex ante complexity of operations, and the educational attainment and off-farm employment status of the plot manager.


Issue Date:
2003
Publication Type:
Working or Discussion Paper
Record Identifier:
http://ageconsearch.umn.edu/record/14744
PURL Identifier:
http://purl.umn.edu/14744
Total Pages:
30
JEL Codes:
O1; Q12; Q18
Series Statement:
Working Paper 2003-18




 Record created 2017-04-01, last modified 2018-01-22

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