A Comparison of Econometric Models of U.S. Agricultural Productivity and Aggregate Technology *

This chapter illustrates how the Denny-Fuss approach can be adapted for agricultural productivity measurement. It describes the theoretical basis for intertemporal and interspatial productivity measurement. The chapter describes a growth accounting framework utilizing Fisher-Tornqvist superlative index numbers. It focuses on an alternative growth accounting approach utilizing indexes that employ the share derivatives from an econometric cost function model. The importance of improving the methods for measuring technological change is likely to increase in the future, as higher evaluatory standards are imposed on agricultural policy. The origin of the Firm Enterprise Data System (FEDS) can be traced to the Agriculture and Consumer Protection Act of 1973. The first step in creating a five-factor data set using the individual budgets is to extract and classify budget data. The various budget items are classified into one of five categories corresponding to capital (K), labor (L), energy (E), purchased material inputs (M), and acreage (A).