Agricultural Economics Department


Date of this Version

August 1999


Selected Paper, American Agricultural Economics Association Meetings, Salt Lake City, Utah, August 2-5, 1998. Copyright 1998 by the Saleem Shailc and Richard K.Perrin. Used by permission.


Traditional total factor productivity [TFP] misrepresents the true change in agricultural productivity to the extent that environmental bads jointly produced with desirable outputs are unaccounted. Nonparametric productivity measures incorporating environmental bads are evaluated for Nebraska agriculture. The results indicate that prior to the 1980's the traditional TFP measures overstate productivity growth while it is underestimated afterwards, reflecting peak use of chemicals.