The economic literature on pest control exclusively assumes a non-negative marginal product of pesticides based on a monotonic non-decreasing function of damage abatement, which may bias pesticide productivity estimates. This paper proposes a specification that allows for a negative marginal...

In this article we propose a theoretical model for analyzing capital requirement in agricultural production and define excess capital thereupon. We develop a two-step method that allows endogenous regressors in the maximum likelihood estimation. The two-step procedure is also capably of...