A Nonparametric Analysis of Productivity: The Case of U.S. Agriculture.

A nonparametric analysis of technical change under profit maximization and a "generalized augmentation" hypothesis is proposed. It allows for Hicks neutral as well as biased technical change. An empirical application to U.S. agriculture is presented in the context of input-output translating (additive augmentation). The analysis generates nonparametric estimates of productivity that are obtained under less restrictive assumptions than other commonly used productivity measures. The empirical results illustrate the usefulness of the approach. Copyright 1990 by Oxford University Press.