Management and returns to scale in agriculture
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The problem of treating management as an explanatory variable in agricultural production function has not yet been solved satisfactorily mainly because of the lack of a generally accepted cardinal measure. Only a few agricultural production function analyses are known to have included management as an explanatory variable. These investigations have specified management in different ways under a diversity of assumptions and obtained different kinds of results even with comparable situations. The objective of this article is to present a critical review of the theoretical meaning of management and of the effectiveness of different ways of treating management in empirical investigations.