Are Indian Farms Too Small. Mechanization, Agency Costs, and Farm Efficiency (Figures and Tables 2)

Figure A2: Illustrations of rice harvesting technologies appropriate for different operational scales Table A1 First-Stage Estimates for Supervision Function (1999-2007/8 Panel) ΔHired Labor ΔFamily Labor Inherited land prior to 1999 -.556 (2.22) -1.43 (3.26) Males aged 60+ in 1999 -5.04 (2.60) -7.29 (2.14) Head’s father not co-resident in 1999 -8.55 (2.44) -10.1 (1.65) Head’s father’s age in 1999 .0194 (0.22) .179 (1.17) Number of head’s brothers in 1999 -3.50 (1.24) 7.51 (1.52) Household size in 1999 .677 (2.14) -.549 (0.99) Boys aged 5-9 in 1999 -.191 (0.09) 20.4 (5.72) Girls aged 5-9 in 1999 -.798 (0.37) -14.8 (3.90) Boys aged 10-14 in 1999 3.07 (1.31) -6.96 (1.70) N 1,640 1,640 F(8, 1,614), excluded instruments [p] 2.58 [.008] 8.05 [.000] F(25, 1,614), all regressors [p] 6.36 [.000] 8.10 [.000] 20.87 [.004] Cragg-Donald Wald statistic, underidentification, χ2(7) [p] All specifications include state dummy variables. Asymptotic t-ratios in parentheses. Table A2 First-Stage Estimates for Profit Function (1999-2007/8 Panel) ΔLand ΔFraction Irrigated ΔFarm Equipment (x10-3) Inherited land between 1999 and 2007-8 .195 (4.52) -.00032 (0.10) 1.00 (1.70) Inherited fraction of irrigated land by 1999 .735 (2.61) -.446 (2.35) 18.5 (4.80) Head’s father not co-resident in 1999 .688 (1.20) .0365 (0.82) 6.19 (0.79) -.00464 (0.45) -.00024 (0.30) -.127 (0.90) Number of head’s brothers in 1999 .102 (0.32) .00264 (0.11) 4.27 (0.98) Head’s brothers co-resident in 1999 -.557 (3.67) -.00203 (0.17) -1.64 (0.79) Standard deviation of brothers’ schooling in 1999 -.060 (1.05) -.00107 (0.24) 2.05 (2.62) Inherited value of mechanical assets by 1999 (x10-3) .00385 (0.70) .00062 (1.44) .0649 (0.86) Inherited value of nonmechanical assets by 1999 (x10-3) -.0882 (1.99) -.00016 (0.05) 3.55 (5.87) Inherited assets between 1999 and 2007-8 (x10-3) .540 (0.54) .0376 (0.48) -10.7 (0.78) N 1,374 1,374 1,374 4.86 [.000] 41.9[.000] 8.05 [.000] Head’s father’s age in 1999 F(10, 1,363), excluded instruments [p] Cragg-Donald Wald statistic, underidentification, χ2(8) [p] Asymptotic t-ratios in parentheses. 39.42 [.000] Table A3. Farmer-Fixed-Effects IV Panel Data Estimates (1999-2008)b: Effects of Own Landholdings and Own Farm Equipment on Alternative Measures of Profits per Acre Dependent variable: Owned landholdings Profits per Acre per Acre (Upper-Bound Shadow Labor Cost under Autarchy) Profits per Acre (Costless Family Labor) 574.9 (3.13) 637.9 (2.79) 474.5 (2.24) 511.3 (2.15) 526.3 (2.85) 1506.3 (3.05) Fraction of owned landholdings irrigated - 3822.4 (2.27) 2924.1 (1.79) - 2251.7 (1.49) 4974.1 (2.21) Value of farm equipment - - .0136 (1.05) - - .0362 (1.84) Number of observations 3,524 3,524 3,524 3,524 3,524 3,524 Number of farmers 1,745 1,654 1,654 1,745 1,654 1,654 Kleinberger-Paap underidentification test statistic χ2(df), p-value (8) 24.6 .0018 (8) 19.5 .0122 (8) 15.1 .0575 (5) 18.8, .0021 (8) 19.9, .0106 (8) 15.1, .0575 Hansen J overidentification test statistic χ2(df), p-value (7) 7.38 .390 (7) 7.06.6 .423 (7) 9.81 .200 (4) 2.45, .654 (7) 8.73, .273 (7) 10.3, .174 Absolute value of asymptotic t-ratios in parentheses; clustered at the village level. bInstruments include land inherited after 1999, assets inherited after 1999, whether the current head has brothers, the standard deviation of the schooling of inheritance claimants, the father’s age in 1999, whether the father is co-resident in 1999, owned asset values in 1999, inherited irrigation assets in 1999. Table A4 First-Stage Estimates for Equipment Investment and Machinery Rental (Retrospective 2007/8 Panel) ΔLand Δ Equipment Value (x10-3) .959 (77.1) 1.27 (4.33) -.00052 (0.10) .573 (4.89) .118 (1.14) 1.77 (0.73) -.00524 (1.98) -.0715 (1.14) Number of head’s brothers in 1999 .0881 (1.02) 1.71 (0.84) Standard deviation of brothers’ schooling in 1999 .00269 (0.18) 1.30 (3.72) Change in proximity of bank between 1999 and 2007-8 -.158 (1.90) 2.60 (1.32) Bank nearby in 1999 -.149 (1.28) 1.63 (0.59) N 2,570 2,570 F(7, 2,561), excluded instruments [p] 863.1 [.000] 7.46[.000] F(8, 2,561), all regressors [p] 755.3 [.000] 8.28[.000] Inherited land between 1999 and 2007-8 Inherited assets between 1999 and 2007-8 (x10-3) Head’s father not co-resident in 1999 Head’s father’s age in 1999 Cragg-Donald Wald statistic, underidentification, χ2(8) [p] Asymptotic t-ratios in parentheses. 39.77 [.000] Table A5. Within-Farmer/Season Plot-Level Estimates for Rice Plots Only (2007-8): Effects of Plot Size on Plot-Specific Profits and Labor Costs and Use of Tractor Services Profits per Acre Total Labor Costs per Acre Any Tractor Services Usedb Plot area 601.2 (3.82) 590.0 (3.71) 500.8 (3.05) -859.1 (4.91) -854.5 (4.89) -777.6 (4.55) 1.10 (2.24) 2.03 (2.43) .901 (1.50) Whether plot irrigated 855.1 (1.36) 885.4 (1.37) 809.7 (0.98) 429.9 (0.78) 344.7 (0.62) 820.8 (1.40) 1.09 (1.39) 173 (1.72) 17.2 (9.89) Formal equipment rental market in village*area - - 617.8 (1.18) - - -621.5 (1.00) - - .412 (0.49) Include soil characteristics?a N Y Y N Y Y N Y Y Number of plot observations 5,184 5,184 5,184 5,184 5,184 5,184 5,184 5,184 5,184 Number of farmers 2,180 2,180 2,180 2,180 2,180 2,180 2,180 2,180 2,180 Absolute value of asymptotic t-ratios in parentheses clustered at the village level. aSoil characteristics include depth, salinity, percolation and drainage; five soil colors (red, black, grey, yellow, brown, off-white); five soil types (gravel, sandy, loam, clay, and hard clay). bML conditional logit estimates. All specifications include plot distance to homestead.