New Measure of U.S. Agriculture Productivity Unveiled, Impacting Policy Decisions
The article discusses how to measure productivity change in U.S. agriculture. They use a measure called total factor productivity, which compares the value of agricultural output to all inputs used. The current method, based on index numbers, has limitations because it assumes a specific production function that may not fit the data well. Therefore, there is a need to find a better way to estimate productivity in agriculture.