@article{Sheng:165874,
      recid = {165874},
      author = {Sheng, CP},
      title = {Elasticity of Substitution and Farm Heterogeneity in TFP  and Size: A Theoretical Framework and Empirical Application  to Australian Broadacre Farms},
      address = {2014},
      number = {425-2016-27188},
      pages = {22},
      year = {2014},
      abstract = {This paper develops a theoretical model to examine the  relationship between the input elasticity of (technical)  substitution and both farm total factor productivity and  size. In the presence of ongoing technical change and its  factor bias, the ‘income effect’ arising from farms’ cost  minimizing behaviour enables them to increase productivity  by saving inputs or, through the dual equivalent, enlarging  farm size. As such, farms with higher elasticities of  substitution tend to grow larger and become more  productive, which provides a new mechanism through which  farm heterogeneity in productivity growth can be examined.  Empirical evidence from Australian broadacre agriculture  supports this theory and points to important policy  implications.},
      url = {http://ageconsearch.umn.edu/record/165874},
      doi = {https://doi.org/10.22004/ag.econ.165874},
}