NON-PARAMETRIC ENVIRONMENTAL ADJUSTED PRODUCTIVITY (EAP) MEASURES: NEBRASKA AGRICULTURE SECTOR
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Traditional Total factor productivity [TFP] misrepresents the true change in agricultural productivity because environmental bads jointly produced with desirable outputs are unaccounted. Nonparametric measures incorporating environmental bads support the hypothesis that prior [after] to 1980's the traditional TFP overstate [understate] production growths, reflecting peak use of chemicals.