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Estimating Crop-Specific Production Technologies in Chinese Agriculture: A Generalized Maximum Entropy Approach
Xiaobo Zhang and Shenggen Fan
American Journal of Agricultural Economics
Vol. 83, No. 2 (May, 2001), pp. 378-388
Stable URL: http://www.jstor.org/stable/1244680
Page Count: 11
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A generalized maximum entropy approach is adapted to empirically estimate crop-specific production technologies in Chinese agriculture. Despite a modest behavioral assumption about equal marginal returns of nonland inputs among crops, this method does not require price information, which is usually distorted in a centrally planned economy such as China. A multi-output technology for Chinese agriculture is estimated and input allocations for each province are recovered simultaneously. The estimated multi-output production technology and input allocations imply that China may have greater grain production potentials than previously thought.
American Journal of Agricultural Economics © 2001 Agricultural & Applied Economics Association