This paper shows that using yields may not be informative of the relationship between farm size and productivity in the … context of small-scale farming. This occurs because, in addition to productivity, yields pick up size-dependent market … distortions and decreasing returns to scale. As a result, a positive relationship between farm productivity and land size may turn …

We consider a tractable model of heterogeneous production units that features endogenous entry and productivity … standard factor misallocation framework, policy distortions featuring a positive productivity elasticity of distortions imply … larger reductions in output through smaller investments in establishment productivity. A calibrated version of the model …

In this paper we show that the study of the farm size-productivity relationship hinges on the choice of productivity … measure. Our main insight is that using yields, a partial measure of productivity, may not be informative for the size-productivity … relationship because, in addition to total factor productivity, yields pick up input markets distortions and deviations from …

We revisit the long-standing empirical evidence of an inverse relationship between farm size and productivity using … in the literature, but positively related to farm productivity (a farm-specific component of total factor productivity … evaluating the role of farm-specific distortions. Our findings point to the limited value of yields (or land productivity) in …