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Abstract
This paper examines biased technical change in South African agriculture using a system of
share equations with unobserved components. Developing on the work of Lambert and
Shonkwiler (1995), this paper generalises previous work by introducing independent
unobserved components into each model using a regression-based approach. We find evidence
of stochastic technical change, which is itself biased between the four factors of production:
machinery, land, labour and fertiliser, and which closely reflects distinct phases of South
African agricultural policy and development.